US pharmaceutical group’s biggest deal in 5 years comes as sales of its Covid vaccine are set to fall
Pfizer has agreed to buy US biotech company Biohaven Pharmaceuticals for $11.6bn in cash, in the company’s biggest deal in more than five years.
Pfizer said on Tuesday it would pay $148.5 per share from its existing cash pile for Connecticut-based Biohaven. That is a 78 per cent premium to Biohaven’s closing share price on Monday.
With record revenues linked to the success of its Covid-19 vaccine and antiviral pill forecast to fade, New York-based Pfizer had been hunting for acquisitions to sustain its growth. The deal is Pfizer’s largest since its 2016 purchase of Medivation for $14.3bn.
Biohaven, which was founded in 2013, specialises in drugs that target neurological diseases and rare disorders. Its best-known drug is Nurtec ODT, which has been approved for both acute treatment and prevention of migraine in adults.
Pfizer invested $350mn in the company in November last year, acquiring 2.6 per cent of its shares for $173 each.
As part of the deal, Biohaven shareholders will also receive 0.5 of a share in New Biohaven, a new publicly traded company that will be established. It will have the right to receive certain royalties once annual net sales of two of Biohaven’s key drugs, rimegepant and zavegepant, surpass $5.25bn
JPMorgan and law firm Ropes & Gray advised Pfizer, while Centerview Partners and law firm Sullivan & Cromwell advised Biohaven.
This article has been amended to clarify the price Pfizer is paying for Biohaven.
Forum details and information
The FT Due Diligence Forum is a member-only community offering a unique series of events for senior executives involved in mergers and acquisitions, corporate strategy and alternative investment.Get involvedPresented byFT Forums