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

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.

Read Also: Best Healthcare Stocks To Buy Right Now

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.

X testing X

WELCOME BONUS - Free Share Bundle When You Invest £50! Get up to £500 cashback for investing with IG.

Invest in 15,000+ shares and ETFs. Open an account now, invest at least £50, and you’ll get a free share bundle worth between £40 and £200. T&Cs apply.

5.0

Open Account Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

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.