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Pfizer to acquire Biohaven in ~$11.6B deal; Biohaven stock soars 72%

May 10, 2022 7:22 AM ETBiohaven Ltd. (BHVN)By: Ravikash, SA News Editor26 Comments

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Pfizer (NYSE:PFE) is acquiring Biohaven (NYSE:BHVN) for a total of ~$11.6B in cash.

The two companies have been partners for migraine therapy rimegepant, sold as NURTEC ODT, and zavegepant. Pfizer had previously invested $350M to acquire 2.6% stake in Biohaven at $173 per

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Comments (26)

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a
I don’t understand, Pfizer holders here shares in the new company? But I thought it was being bought out?

Could someone explain what this deal actually is? I’m a Pfizer shareholder
Exit16 profile picture
@ahappyinvestor Looks like only BHVN common shareholder gets 0.5 New Biohaven shares per every old BHVN share.

Very good deal for Pfizer: NURTEC/VYDURA is blockbuster material.
b
@Exit16 it looks pfe shareholders will get shares …

Pfizer (NYSE:PFE) is acquiring Biohaven (NYSE:BHVN) for a total of ~$11.6B in cash.

The two companies have been partners for migraine therapy rimegepant, sold as NURTEC ODT, and zavegepant. Pfizer had previously invested $350M to acquire 2.6% stake in Biohaven at $173 per share.

Under the current acquisition agreement, Pfizer will acquire all outstanding shares of Biohaven not already owned by Pfizer for $148.50/ share in cash.

Biohaven common shareholders, including Pfizer, will also receive 0.5 of a share of New Biohaven, a new publicly traded company that will retain Biohaven’s non-CGRP development stage pipeline compounds, per Biohaven common share.
b
Here is pfe press release … 2nd paragraph says including pfe shareholders of shares of new company

www.businesswire.com/...
biogenius profile picture
Hope Pfizer will do the same thing to Cardiff.

cardiffoncology.investorroom.com/...
h
Biotechs are not tied to monetary policy. Huge mistake to sell on Fed .005 rate hikes. Shorts will get crushed on this one and others as this will light a fire with BP’s to get moving on Biotechs they been contemplating. Many high quality biotechs, with great pipelines and huge catalysts.
Dividend Ambassador profile picture
This sounds like an insanely structured deal. Is the Biohaven CEO the brother in law of the PFE CEO? PFE’s current management shouldn’t be allowed anywhere near the company’s cash windfall from COVID w/o adult supervision.
Jason Z profile picture
@killiondt it does seem a sweet deal for Biohaven, I suspect shares will trade way above $148 when people realize how sweet this deal is for Biohaven commons.
Vikdan profile picture
@Jason Z Letting market digest. Still trading $6 below buyout + the shares in the remaining company. Should move closer to $148 hopefully
q
@killiondt Management wants to pay themselves as much as possible. Like with 90% of the companies (only exemptions are companies that are effectively led by big shareholders, like Icahn)...
josephaoppenheim profile picture
Does this mean PFE shareholders will get some shares of the New Biohaven?
b
@josephaoppenheim pfe shareholders will get some as well … read this …

Pfizer (NYSE:PFE) is acquiring Biohaven (NYSE:BHVN) for a total of ~$11.6B in cash.

The two companies have been partners for migraine therapy rimegepant, sold as NURTEC ODT, and zavegepant. Pfizer had previously invested $350M to acquire 2.6% stake in Biohaven at $173 per share.

Under the current acquisition agreement, Pfizer will acquire all outstanding shares of Biohaven not already owned by Pfizer for $148.50/ share in cash.

Biohaven common shareholders, including Pfizer, will also receive 0.5 of a share of New Biohaven, a new publicly traded company that will retain Biohaven’s non-CGRP development stage pipeline compounds, per Biohaven common share.
s
I to Bought last week. Thought I could quick turn on earnings but this much better. Cramer has been pushing this stock for some time. I love that were also getting .5 share of the new bhvn with no debt, preferred shares and 275m in cash. Wonder what that’s going to start at? Deal worth more than the buyout price
R
At least they are finally putting the Covid windfall money to use. Although they could have gotten it much cheaper instead of a 70% markup. And great I get half shares of another worthless PFE spinoff.
Jason Z profile picture
@Randol33 it's an alright price, 52 week high were higher than the buy out price, PFE were willing to pay $170+ not long ago.
R
Exit16 profile picture
Complete biotech sector for sale at the current prices!
R
Good deal for pfeizer
k
Anyone know what the regulatory risk on a deal like this would be? In the past I’d say there was no real antitrust risk but these days it’s harder to tell.
q
@k.D.S. Almost no risk, it's not a technology company that needs China approval...
prudent 576 profile picture
Just bought BHVN long on 4/29!
Paperone75 profile picture
@prudent 576 What a luck!!
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