(Pfizer) Shares of Biohaven Pharmaceutical rose more than 72% in premarket on Tuesday after news Pfizer will acquire it for $11.6 billion in cash.
The deal values Biohaven at $148.50, representing about 33% premium to the stock’s volume-weighted average of $111.70 over the past three months. Biohaven shareholders will get an additional 0.5 of a share of the new publicly traded entity.
Under the deal, Pfizer will commercialize NURTEC® ODT, a compound for the prevention and treatment of migraine in adults.
Pfizer is expected to make payments at closing to settle Biohaven’s debt to third parties and for the redemption of outstanding shares of the latter’s preferred stock. The transaction will close in early 2023.
BHVN: NYSE is up +72.66%, PFE: NYSE is down -1.52%.
