Insights

Why Biohaven Pharmaceutical Stock Soared Today

What happened
Shares of Biohaven Pharmaceutical (NYSE: BHVN) rocketed 68% on Tuesday after the biopharmaceutical company struck a deal to be acquired by Pfizer (NYSE: PFE). 
So what
Biohaven is a leader in the treatment of migraines — often intensely painful headaches that affect 1 billion people worldwide. Its Nurtec ODT therapy is used to treat and prevent migraines in adults. 
The agreement would see Pfizer purchase Biohaven for roughly $11.6 billion, or $148.50 per share, in cash. Pfizer would also pay off Biohaven’s debt and redeem its preferred stock.
Additionally, Biohaven shareowners would receive half a share of New Biohaven — a company created to house a portion of Biohaven’s pre-clinical drug pipeline — for every Biohaven share they own.
Image source: Getty Images.

“Pfizer’s capabilities will accelerate our mission to deliver our migraine medicines to even more patients, while the new R&D [research and development] company is well-positioned to bring value to patients and shareholders by focusing on our innovative pipeline for neurological and other disorders,” Biohaven CEO Vlad Coric said in a press release.
The deal is expected to be completed by early next year, pending regulatory and shareholder approval.
Now what 
Pfizer has generated tens of billions of dollars from its COVID-19 vaccine and antiviral treatment. The pharmaceutical giant intends to use some of its newfound cash to acquire smaller healthcare companies with high-potential drugs that could bolster its pipeline and offset some of the upcoming patent expirations it faces. Biohaven’s innovative migraine therapies could help to do just that.
Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. –

What happened

Shares of Biohaven Pharmaceutical (NYSE: BHVN) rocketed 68% on Tuesday after the biopharmaceutical company struck a deal to be acquired by Pfizer (NYSE: PFE)

So what

Biohaven is a leader in the treatment of migraines — often intensely painful headaches that affect 1 billion people worldwide. Its Nurtec ODT therapy is used to treat and prevent migraines in adults. 

The agreement would see Pfizer purchase Biohaven for roughly $11.6 billion, or $148.50 per share, in cash. Pfizer would also pay off Biohaven’s debt and redeem its preferred stock.

Additionally, Biohaven shareowners would receive half a share of New Biohaven — a company created to house a portion of Biohaven’s pre-clinical drug pipeline — for every Biohaven share they own.

Image source: Getty Images.

“Pfizer’s capabilities will accelerate our mission to deliver our migraine medicines to even more patients, while the new R&D [research and development] company is well-positioned to bring value to patients and shareholders by focusing on our innovative pipeline for neurological and other disorders,” Biohaven CEO Vlad Coric said in a press release.

The deal is expected to be completed by early next year, pending regulatory and shareholder approval.

Now what 

Pfizer has generated tens of billions of dollars from its COVID-19 vaccine and antiviral treatment. The pharmaceutical giant intends to use some of its newfound cash to acquire smaller healthcare companies with high-potential drugs that could bolster its pipeline and offset some of the upcoming patent expirations it faces. Biohaven’s innovative migraine therapies could help to do just that.

Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

  • This field is for validation purposes and should be left unchanged.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US & HK* Trades. Click Here!