Pfizer set to acquire Biohaven Pharmaceuticals for $11.6 billion

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Drug manufacturer Pfizer has entered into a definitive agreement to acquire Biohaven Pharmaceuticals, a maker of migraine treatments, for $11.6 billion, the former said this week.

Pfizer will also make payments at closing to settle Biohaven's third party debt and for the redemption of all outstanding shares of Biohaven's redeemable preferred stock.

The boards of directors of both Biohaven and Pfizer have unanimously approved the transaction.

The proposed transaction includes Pfizer's acquisition of Biohaven's migraine drugs, including rimegepant, which is approved in the U.S. under the name NURTEC ODT. The same drug is approved in the European Union under the trade name VYDURA.

Also included in the transaction is zavegepant, which is on track for clearance in the U.S. in the second quarter of this year. Zavegepant is an intranasal spray for the acute treatment of migraine, and is in development as an oral soft gel for chronic migraine prevention.

WHAT'S THE IMPACT

This agreement follows on the November collaboration for the commercialization of rimegepant and zavegepant outside the United States, in connection with which Pfizer invested $350 million to acquire 2.6% of Biohaven's common stock at $173 per share.

Following the closing, New Biohaven will continue to operate under the Biohaven name. New Biohaven will be led by Dr. Vlad Coric as chairman and CEO, and include other members of the current Biohaven management team.

New Biohaven will also have the right to receive tiered royalties from Pfizer on any annual net sales of rimegepant and zavegepant in the U.S. in excess of $5.25 billion.

Pfizer expects to finance the transaction with existing cash on hand. The companies expect the deal to close by early 2023, pending customary regulatory approvals and approval by Biohaven's shareholders.

THE LARGER TREND

Pfizer has been a major player in the push to get more Americans vaccinated against COVID-19. Its FDA-approved vaccine stands alongside Moderna's as among the more effective pharmacological tools to mitigate the spread of the virus.

In March, the FDA authorized both Pfizer and Moderna to give a second booster dose of their COVID-19 vaccines to individuals aged 50 and older and to those who are immunocompromised. The additional shot follows the completion of a three-dose primary vaccination series at least four months after the first booster.

In addition, the FDA authorized a second booster dose of the Pfizer-BioNTech COVID-19 vaccine for individuals aged 12 and older immunocompromised in certain ways at least four months after the first booster. This includes people who have undergone solid organ transplantation or who are living with an equivalent level of immunocompromised conditions.

Not all of Pfizer's efforts to address the pandemic have been fully successful, however. Pfizer's antiviral drug Paxlovid, which was created to treat COVID-19 infection, proved ineffective at preventing coronavirus infection among people living in the same house as an infected person, according to new data published by the company.

Twitter: @JELagasse
Email the writer: jeff.lagasse@himssmedia.com