Pfizer’s purchase of migraine medication maker Biohaven Pharmaceutical represents a commitment to expand the reach of its calcitonin gene-related peptide (CGRP) franchise, CEO Vlad Coric told CNBC’s Jim Cramer on Tuesday.
“There are still over 300,000 physicians in the U.S who write for the older triptans and have not yet written for one oral CGRP,” Coric said in an interview on “Mad Money,” referring to a class of medicine used to treat migraines.
“That’s not acceptable — we have to bring the modern day, novel therapies to those patients, and Pfizer really is the best company to build upon our work and unlock the potential of this franchise and bring it to the patients who are still in need,” he added.
Pfizer and Biohaven announced on Tuesday that the Covid vaccine maker will purchase Biohaven for about $11.6 billion. Pfizer will receive all Biohaven stock it doesn’t already own — the company took a 2.6% stake in Biohaven in November — for $148.50 a share in cash.
Shares of Biohaven, whose main product is migraine pill Nurtec, skyrocketed 68% on Tuesday to $140. Pfizer stock rose 1.75%.
Cramer said that while he believes Biohaven wouldn’t have been able to expand the drug globally on its own, he believes that Pfizer’s help will make its migraine medication one of the “top 10 drugs in the history of the world.”
“I agree, Jim. I think this is going to be one of the most important primary care drugs, and in addition to that is going to change the way migraine is treated and set a new standard of care,” Coric said in response.
“I’m really looking forward to seeing the team at Pfizer really encourage patients to learn about this and tap into the full potential of CGRP agents,” he added.
Pfizer and Biohaven said they expect to close the acquisition by early 2023.