Pfizer Inc (NYSE:PFE) said on Tuesday it will pay $11.6 billion to buy Biohaven Pharmaceutical Holding Co (NYSE:BHVN), making a big bet its ability to boost sales of the top-selling pill in a new class of migraine drugs.
The boards of both companies have approved the deal, they said. Biohaven shares jumped 70.4% to $141.63, while Pfizer was up 1.4% at $49.31.
Pfizer is flush with cash from a once-in-a-lifetime surge in revenue from COVID-19 vaccines and therapeutics and has said it is looking to buy companies or drugs that could add at least $25 billion in annual sales by the end of the decade.
