Pfizer Agreed to Buy Rest of Biohaven Pharmaceutical Holding

Pfizer Inc. has agreed to purchase the rest of Biohaven Pharmaceutical Holding Co. for approximately $11.6 billion and give the New York pharmaceutical company full ownership of the Nurtec ODT migraine franchise.

Pfizer said it would pay $148.50 per share in cash for Biohaven shares that it does not yet own. That's a premium of nearly 79% of the closing price of $83.14 for a bio pharmacy company in New Haven, Connecticut.

Pfizer said Biohaven shareholders, including Pfizer, will also receive shares in a new public company that holds Biohaven's non-CGRP pipeline compounds in development. Earlier this year, Pfizer and Biohaven signed an agreement with Pfizer to acquire sales rights for Nurtec outside the United States and a 2.6% stake in Biohaven.

Backed by cash from the Covid-19 franchise, Pfizer said it plans to use cash to fund the Biohaven transaction, adding that it plans to close the transaction by early 2023. Biohaven shares are up about 75% in pre-market trading on Tuesday.