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One of the makers of the COVID vaccine, Pfizer Inc, has announced plans to purchase Biohaven Pharmaceutical Holding Co. The company revealed their intensions of paying $11.6 billion to tap into the migraine medicine market.
The buyout was approved by the boards of both companies. The migraine medicine company’s shares jumped 70% to $141.31 apiece. Pfizer’s share only increased slightly to $48.83 each.
The COVID-19 pandemic made Pfizer flush with revenue from vaccines and therapeutics. They have stated they are in the market to purchase medications and companies that could add around $25 billion or more in annual sales by the end of the decade.
One of the drug assets gained in the deal was Nurtec ODT. This medication belongs to a class of migraine treatments called calcitonin gene-related peptide (CGRP) inhibitors. Biohaven also has six other migraine medicines in development.
In 2021, Biohaven saw around $462.5 million in sales of Nurtec. This medicine competes with two CGRp inhibitor pills from the company AbbVie Inc. Eli Lilly and Co and Amgen Inc. sell the top migraine drugs in this class with their injected medication.
“The CGRP oral medications, though still somewhat newer entrants in a deeply entrenched space, continue to make steady inroads in disrupting the broader migraine market in the U.S.,” according to BioHaven Chief Executive Vlad Coric.
Pfizer’s new medication company acquisition is forecasted to earn between $825 million to $900 in 2022. The vaccine makers believe the migraine pills will eventually overtake the shots in their classification.
The acquisition adds a “breakthrough migraine franchise into our portfolio, which we can then enhance and bring to even more patients with our commercial capabilities,” Pfizer Chief Business Innovation Office Aamir Malik stated.
Pfizer expects to double the size of Nurtec’s sales force. This will allow the company to call on 70,000 additional doctors in the U.S. The company projects that the migraine medicine will eventually represent around 40% of prescriptions for CGRP inhibitor pills, up from around 5% currently.
In November 2021, Pfizer took a 2.6% stake in Biohaven. As part of their deal with Biohaven, Pfizer will acquire all of the company’s shares it does not already own for $148.50 each.
Written by Sheena Robertson
Reuters: Pfizer to pay $11.6 bln for Biohaven to tap migraine market; by Manas Mishra and Michael Erman
Marketwatch: Pfizer to acquire Biohaven Pharma for $11.6 billion in cash sending Biohaven shares up 74% premarket; by Ciara Linnane
Top and Featured Image Courtesy of Jeanette Vietti – Used with Permission
Inset Image Courtesy of AnToonz‘s Flickr Page – Creative Commons License