Pfizer Inc. has agreed to buy Biohaven Pharmaceutical Holding Co. for $11.6 billion in cash in order to secure approval for a migraine headache therapy.
According to a statement released Tuesday, Pfizer will pay $148.50 per share for all of Biohaven’s outstanding stock in New Haven, Connecticut. Pfizer and other Biohaven stockholders will get 0.5 shares in New Biohaven, a new business that will keep some chemicals in development.
Pfizer has the means to diversify beyond pandemic drugs that may have limited demand as the outbreak winds down, because to billions in sales of its Covid-19 vaccine and treatment. Pfizer will obtain the medicine rimegepant, which is marketed in the United States as Nurtec ODT and in the European Union as Vydura, as well as another molecule being studied as a migraine nasal spray and soft gel.
In November, PFizer and Biohaven agreed to work together to market the two medications outside of the United States. Pfizer paid $350 million for 2.6 percent of Biohaven’s common stock at $173 per share at the time.
According to the announcement, the drug giant is paying a significant premium for Biohaven, roughly a third more than the stock’s weighted average selling price of $111.70 over the previous three months.
In premarket trade on Tuesday, Pfizer shares fell 1.3 percent.