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In its biggest deal since 2016, Pfizer announced on Tuesday it will buy the 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 drug Rimegepant, positioning it as a strong competitor in a crowded 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.
Although the company saw tremendous gains from its Covid-19 vaccine, Pfizer expects sales 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.
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 on Monday.