Biotech Values

[DewDiligence]

BHVN—(-18%/PM)—inks PFE deal_for_ex-US_rights_to Nurtec-ODT migraine drug:

https://finance.yahoo.com/news/biohaven-pfizer-enter-strategic-collaboration-124600872.html

Biohaven and Pfizer are entering into a collaboration and license agreement and related sublicense agreement pursuant to which Pfizer will acquire rights to commercialize rimegepant [Nurtec-ODT] and zavegepant [BHVN’s next-gen CGRP candidate] outside of the U.S. Biohaven will continue to lead research and development globally and Pfizer would execute commercialization globally, outside of the U.S.

Under the financial terms of all transaction agreements, Pfizer will make an upfront payment of $500 million, consisting of $150 million cash and $350 million in the purchase of Biohaven equity at a 25 percent market premium. Biohaven is also eligible to receive up to $740 million in milestones.

In addition to the tiered double-digit royalties owed to Biohaven on net sales outside of the U.S., Pfizer will compensate Biohaven for the related royalties on net sales outside of the U.S. owed under the Company's license and funding agreements with Bristol-Myers Squibb Company and Royalty Pharma.

Why is BHVN down sharply on this news? Because investors were hoping for a buyout.