Biohaven (BHVN) stock soars 70% after Q1 results, Pfizer’s (PFE) buy offer

Shares of Biohaven Pharmaceutical Holding Company Ltd. (NYSE: BHVN) shot up by 70.79% to US$141.995 in the premarket on Tuesday after declaring its first-quarter fiscal 2022 results and Pfizer Inc’s (PFE) cash offer of US$11.6 billion to acquire the vaccine maker.

Pfizer Deal

Pfizer Inc on Tuesday announced plans to acquire migraine drugmaker Biohaven Pharmaceutical Holding Company Ltd for US$11.6 billion in cash.

It will give Pfizer access to Biohaven’s approved drug Rimegepant, marketed as Nurtec ODT in the US. Rimegepant was approved for severe migraine treatment in 2020. In May 2021, it won expanded approval for the drug to prevent migraine episodes. 

As part of the deal, Pfizer will acquire all the outstanding Biohaven shares, which it has not yet owned, for US$148.50 per share in cash, at a 78.6% premium on its last closing price. Pfizer holds a 2.6% stake in the company. 

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Financials:

Biohaven reported net product revenue of US$123.6 million in the first quarter ended March 31, 2022, compared to US$43.8 million in the previous year. The 182% increase in revenue YoY was due to increased sales volume of its prescription drug, Nurtech ODT, and net price realization due to lesser sales allowances.

The ‘collaboration and other’ revenue came in at US$195.3 million for Q1, 2022, compared to zero revenue under ‘collaboration and other’ in the same quarter in 2021.

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Biohaven’s net loss attributable to common shareholders was US$209.1 million or US$2.97 per share diluted, compared to a net loss attributable to the company of US$265.0 million or US$4.27 per share diluted, in the March quarter of 2021.

It reported cash and equivalents and marketable securities of US$602.5 million as of March 31, 2022, versus US$364.6 million as of December 31, 2021. 

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In January, the company received US$500 million in upfront proceeds from Pfizer, including US$150.0 million in cash and US$350.0 million in Biohaven common shares purchase proceeds as part of their strategic collaboration arrangement.

The New Haven, Connecticut-based commercial-stage biopharma company boasts a portfolio of innovative therapies and late-stage product candidates targeting patients with neurological and neuropsychiatric diseases. 

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Bottom line:

Biohaven’s market capitalization is US$5.9 billion. The stock traded in the range of US$151.51 to US$65.24 in one year. It closed at US$83.14 on May 9. BHVN gained 20% in one year.