Is This a Smart Deal for Pfizer?
Earlier this month, Pfizer (NYSE: PFE) announced a deal with Biohaven Pharmaceutical (NYSE: BHVN), paying it $500 million ($150 million in cash and $350 million for a 3% stake in Biohaven) in exchange for the rights to market and commercialize two of Biohaven's migraine drugs outside of the United States.
Those medications are rimegepant (approved as Nurtec orally disintegrating tablets, or ODT) and zavegepant (not yet approved). Pfizer will also pay double-digit royalties to Biohaven on Nurtec ODT as well as up to $740 million based on future milestones.
But was this a good move for the pharma stock Pfizer? Let's focus specifically on Nurtec ODT's efficacy in treating migraine patients and the sales potential outside the U.S. for Pfizer to address this question.
Source Fool.com
