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Biohaven Pharmaceutical (BHVN) Jumps 70% on Acquisition from Pfizer

Ollie Martin - AskTraders News writer
Ollie Martin trader
Updated 10 May 2022

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Key points:

  • BHVN shares soar 70% on price of $148.50 per share
  • A key focus on NURTEC ODT – a dual-acting migraine therapy for adults
  • Pfizer is looking to expand its treatment portfolio as the vaccine race fades

Shares of biopharmaceutical company Biohaven Pharmaceutical (NYSE: BHVN) soared 70% after news that it has entered a definitive agreement with Pfizer for the total acquisition of Biohaven for $11.6B in cash. As Pfizer looks to expand its product pipeline after the vaccine sales flurry fades, key therapies like NURTEC ODT – a dual-acting migraine therapy – are catching the eye of industry leaders. 

Under the finalized terms of the agreement, Pfizer will pay $148.50 per Biohaven share, and shareholders will also receive half a share of New Biohaven, an entirely new publicly traded entity that will retain Biohaven’s non-calcitonin gene-related principle; development stage pipeline compounds.

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Pfizer will make payments by 2023 to settle Biohaven’s third-party debt and redeem preferred stock. The buying price of $148.50 per share amounts to a 33% premium over Biohaven’s volume weighted average selling price of $111.70; spread over the three months prior to the announcement. With a closing price of $83.14 on Monday, price is currently holding a 70% gain at around the price of $141.30.

Nick Lagunowich, Global President of Pfizer Internal Medicine stated:

“Today's announcement builds on our legacy of delivering breakthroughs for patients living with complex pain disorders and diseases that disproportionately impact women”

We can expect to see a lot more similar buyouts in the coming year. With the pandemic seemingly on its way out, big pharma are no longer occupied with the vaccine race and are looking to build on pre-existing portfolio’s and strong treatment pipelines.

Ollie Martin - AskTraders News writer
Oliver is a financial writer and analyst specialising in the US stock market, with years of personal experience in understanding micro/macroeconomic structures, market trends and fundamental analysis.