(Bloomberg) — Pfizer Inc. said it will acquire Biohaven Pharmaceutical Holding Co. for $11.6 billion in cash to gain an approved treatment for migraine headaches.
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Pfizer will pay $148.50 a share for all of New Haven, Connecticut-based Biohaven’s outstanding stock, according to a statement Tuesday. Biohaven shareholders, including Pfizer, will receive 0.5 a share of New Biohaven, a new company that will retain some compounds in development.
With billions in hand from sales of its Covid-19 vaccine and treatment, Pfizer has the resources to diversify beyond pandemic products that may have limited demand as the outbreak winds down. Pfizer will gain the drug rimegepant, sold as Nurtec ODT in the U.S. and Vydura in the European Union, along with another compound under investigation as a migraine nasal spray and soft gel.
PFizer and Biohaven agreed in November to collaborate on selling the two drugs outside the U.S. At the time, Pfizer invested $350 million to acquire 2.6% of Biohaven’s common stock for $173 a share.
The drug giant is paying a rich premium for Biohaven, about a third more than the stock’s weighted average selling price of $111.70 over the last three months, according to the statement.
Pfizer shares declined 1.3% in premarket trading Tuesday.
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