Biohaven Pharmaceutical (BHVN) shares rocketed higher Tuesday after the maker of the migraine treatment nurtec, which was once endorsed by Khloé Kardashian, agreed to an $11.6 billion all-cash takeover by Pfizer (PFE).
Pfizer, which built a 2.6% stake in Biohaven last November, will pay $148.5 in cash for the remainder of the New Haven, Connecticut-based drugmaker, a 78.6% premium to Monday's closing price and a level that values the group at around $11.6 billion.
Biohaven, which makes Nurtec, a dual-acting migraine therapy that treats and prevents episodic events in adult patients, is also on track for approval of a nasal spray treatment by the U.S. Food & Drug Administration, the companies said. The group will continue to operate under the Biohaven name, lead by CEO Vlad Coric, and will get a capital injection of $275 million at the close of the deal.
Net product revenue for Nurtec topped $124 million in the first quarter, Biohaven said, and the drug now has over 69,000 unique prescribers, up from just 5,400 last year. Sales should hit between $825 - $900 million, the company said.
"We are excited to announce Pfizer’s proposed acquisition of Biohaven, recognizing the market leadership of Nurtec, our breakthrough all in one migraine therapy, and the untapped potential of our CGRP franchise,” Coric said.
“Pfizer’s capabilities will accelerate our mission to deliver our migraine medicines to even more patients, while the new R&D company is well positioned to bring value to patients and shareholders by focusing on our innovative pipeline for neurological and other disorders," he added. "We believe this transaction represents significant future value creation for patients and our collective shareholders.”
Biohaven shares were marked 70.5% higher in early Tuesday trading to change hands at $141.75 each. Pfizer shares jumped 1.6% higher to trade at $49.44 each.
The World Health Organization classifies migraines as one of the 10 most disabling medical illnesses, Biohaven said. Migraines are characterized by debilitating attacks lasting four to 72 hours with multiple symptoms.
The company said 90% of migraine sufferers are unable to work or function normally during an attack.
Kardashian, who suffers from migraines, said in a 2020 endorsement statement that Nurtec "worked fast and allowed me to get back to normal so that I could take back my day."
For Pfizer, the deal marks its biggest takeover since the $14 billion takeover of Medivation in 2016 and puts some of Covid vaccine sales cash to work.
Last week, Pfizer said sales of its Comirnaty vaccine are expected to top $32 billion this year, helping the drugmaker power full-year revenues to around $100 billion.
Group revenues for the three months ending in March, Pfizer said, surged 76% from last year to $25.66 billion, with around $13.2 billion of that total coming from from Comirnaty sales.
