, pub-5618279750012654, DIRECT, f08c47fec0942fa0

Pfizer Pays $11.6 Billion for Drug-Maker in Its Biggest Deal Since 2016

1652197879 GettyImages 1232801501

Opinions expressed by Entrepreneur contributors are their own.

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.

Related: Pfizer Stock is Ready to be Added to Your Portfolio

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.

“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 Fargo analyst Mohit Bansal said in a note.

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.

Related: Buy Pfizer Before the Smart Money Catches On to the Plot

You May Also Like