Pfizer Pays $11.6 Billion for Drug-Maker in Its Biggest Deal Since 2016Pfizer announced it will buy migraine drug maker Biohaven for about $11.6 billion – in cash.
In its biggest deal since 2016,Pfizerannounced on Tuesday it willbuythe drug-maker Biohaven Pharmaceutical Holding for $11.6 billion, bolstering its portfolio ahead of patent losses from some cancer drugs.
The deal will give Pfizer access to Biohaven's approved drugRimegepant, positioning it as a strong competitor in acrowded market: migraine treatments. Approved in 2020, Rimegepant treats acute migraine attacks and prevents migraine episodes — bringing in sales of $462.5 million in 2021.
This isn't the only billion-dollar deal made by Pfizer in the past year — it's just the biggest. Last year, the company bought Canadian drug developer Trillium Therapeutics for $2.26 billion and drug developer Arena Pharmaceuticals for $6.7 billion.
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Although the company saw tremendous gains from itsCovid-19vaccine, Pfizerexpectssales to drop from last year's highs, along with top-selling patents nearing expiration, which could account for the billions of spending on deals to maintain a strong portfolio.
"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 Fargoanalyst Mohit Bansal said in anote.
Pfizer will acquire all the outstanding shares of Biohaven that it does not already own for $148.50 per share in cash, a 78.6% premium to Biohaven's last closing price onMonday.
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