AGL 40.10 Increased By ▲ 0.10 (0.25%)
AIRLINK 127.05 Increased By ▲ 0.01 (0.01%)
BOP 6.60 Decreased By ▼ -0.07 (-1.05%)
CNERGY 4.51 No Change ▼ 0.00 (0%)
DCL 8.55 No Change ▼ 0.00 (0%)
DFML 41.86 Increased By ▲ 0.42 (1.01%)
DGKC 87.50 Increased By ▲ 0.65 (0.75%)
FCCL 32.50 Increased By ▲ 0.22 (0.68%)
FFBL 64.99 Increased By ▲ 0.19 (0.29%)
FFL 10.34 Increased By ▲ 0.09 (0.88%)
HUBC 109.11 Decreased By ▼ -0.46 (-0.42%)
HUMNL 14.70 Increased By ▲ 0.02 (0.14%)
KEL 5.10 Increased By ▲ 0.05 (0.99%)
KOSM 7.55 Increased By ▲ 0.09 (1.21%)
MLCF 41.43 Increased By ▲ 0.05 (0.12%)
NBP 59.61 Decreased By ▼ -0.80 (-1.32%)
OGDC 192.20 Increased By ▲ 2.10 (1.1%)
PAEL 28.15 Increased By ▲ 0.32 (1.15%)
PIBTL 7.79 Decreased By ▼ -0.04 (-0.51%)
PPL 150.85 Increased By ▲ 0.79 (0.53%)
PRL 26.40 Decreased By ▼ -0.48 (-1.79%)
PTC 16.10 Increased By ▲ 0.03 (0.19%)
SEARL 86.02 Increased By ▲ 0.02 (0.02%)
TELE 7.85 Increased By ▲ 0.14 (1.82%)
TOMCL 35.40 Decreased By ▼ -0.01 (-0.03%)
TPLP 8.15 Increased By ▲ 0.03 (0.37%)
TREET 16.35 Decreased By ▼ -0.06 (-0.37%)
TRG 53.19 Decreased By ▼ -0.10 (-0.19%)
UNITY 26.40 Increased By ▲ 0.24 (0.92%)
WTL 1.27 Increased By ▲ 0.01 (0.79%)
BR100 9,988 Increased By 104.4 (1.06%)
BR30 31,138 Increased By 537.6 (1.76%)
KSE100 94,171 Increased By 815.4 (0.87%)
KSE30 29,184 Increased By 252.8 (0.87%)

Pfizer Inc will pay $11.6 billion to buy migraine pill maker Biohaven Pharmaceutical, marking the biggest deal by the cash-rich drugmaker since 2016 to beef up its portfolio ahead of patent losses for some cancer drugs.

The deal, announced on Tuesday, will give Pfizer access to Biohaven’s approved rimegepant, a potential blockbuster that belong to a class of migraine treatments known as calcitonin gene-related peptide (CGRP) inhibitors.

Flush with about $32 billion in cash on hand after its success with COVID-19 drugs, Pfizer has been looking to add treatments as patents for its top-selling drugs like blood thinner Eliquis near expiration.

Pfizer Q1 revenues jump 77% to $25.7bn on Covid-19 vaccine

The company also expects sales of its COVID-19 vaccines to drop from last year’s highs.

“Investors will like this deal. Given Pfizer’s strong balance sheet, this is still a small acquisition and we would expect more such deals,” Wells Fargo analyst Mohit Bansal said in a note.

The Biohaven deal is its largest since Pfizer’s $14 billion purchase of cancer drugmaker Medivation in 2016.

Pfizer will acquire all Biohaven shares that it does not already own for $148.50 per share in cash, a 78.6% premium to last closing price. It had taken a 2.6% stake in Biohaven in November.

Biohaven shares jumped 70.1% to $141.39 before the bell, while Pfizer was trading flat at $48.60.

With this deal, Pfizer will compete in a crowded market for migraine treatments from other large drugmakers such as Eli Lilly.

Biohaven’s rimegepant, sold as Nurtec ODT in the United States, is approved for use as both a treatment and preventative for migraines and is expected to bring in sales of over $4 billion by 2030. It brought in sales of $462.5 million in 2021.

Biohaven is also developing another CGRP inhibitor and testing two non-CGRP drugs in late-stage studies.

After the deal closes, Biohaven shareholders, including Pfizer, will get 0.5 of a share of a new publicly traded company that will retain Biohaven’s non-CGRP treatments.

Comments

Comments are closed.