Pfizer is spending $11.6 billion to buy the remainder of BioHaven Pharmaceuticals, a migraine treatment company.
The New York drugmaker said Tuesday it will pay $148.50 in cash for each share of BioHaven, which makes Noortec ODT to treat and prevent migraines and has another nasal spray under development.
The price for Biohaven Pharmaceutical Holding Co. Ltd., based in New Haven, Connecticut, represents a 33% premium over Biohaven’s 90-day weighted average trading price of $111.70.
Shares of BioHaven, which fell below $100 in recent weeks, rose 72% to nearly $72 before the opening bell. Pfizer stock slips
Pfizer Inc. has been flush with cash in recent quarters, thanks in part to sales of its COVID-19 vaccine comarinati and now its pill treatment for the virus, Paxlovid. Sales of those drugs exceeded $14 billion during the most recently completed first quarter.
The company plans to generate about $25 billion in sales by 2030 that comes from new business development.
Last November, Pfizer said it would invest $350 million in BioHaven to help sell Zavagepant, the Noortec OTD and spray, outside the United States.
Pfizer said Tuesday that the spray is on track for US approval in the current quarter, and is also developing an oral gel version of it to prevent chronic migraines.
Biohaven’s deal also includes some other potential treatments in the early stages of development.
Other elements of Biohaven’s late-stage development pipeline will go to a new publicly traded company that bears the name Biohaven.
Shareholders of both Pfizer and BioHaven have approved the sale.
Once the new company spin-off is complete, it is expected to close in early 2023.