NEW HAVEN: Biohaven Pharmaceutical Holding Company Ltd. [NYSE: BHVN] based in the city’s downtown has just shown the wisdom of its licensing and developing programs.
Royalty Pharma a New York based bioscience investment firm has agreed to purchase a tiered, sales-based participation rights on future global net sales of products containing rimegepant, the company’s migraine treatment in development.
Royalty Pharma will pay $100 million for the rights and has also agreed to purchase $50 million in common shares of Biohaven, at a price of $45.00 per share. The purchase price, represents an approximately 19% premium over the 15-day volume-weighted average price through June 15, 2018.
The company says this new $150 million of and funding and its current cash on hand, “provides Biohaven the resources to support the Company’s rimegepant development program through NDA filing, progression of BHV-3500 into Phase 2.”
Rimegepant was sitting on the shelf at Bristol Myers Squibb [NYSE: BMY] when the company signed a licensing agreement for the drug and related chemistry in 2016. In March of this year the company raised from investors and paid $55 million to BMS to recapture its royalty rights under the original deal.
RP will receive 2.1% of global annual net sales o up to and equal to $1.5 billion, declining to 1.50 percent on global annual net sales of products exceeding $1.5 billion. The company says these “transactions are expected to provide sufficient cash to fund operations through the end of 2019.”
Vlad Coric, M.D., Chief Executive Officer of Biohaven, commented, “Royalty Pharma has established itself as an industry leader in investing in late stage biopharmaceutical products. This transaction will allow us to fully fund Biohaven’s current pipeline portfolio through the end of 2019 and demonstrates the value of our late-stage CGRP-receptor antagonist products in migraine.”
“We are delighted to invest in these groundbreaking products for the treatment of migraines,” remarked Pablo Legorreta, Founder & Chief Executive Officer of Royalty Pharma. “Today, millions of migraineurs get little or no benefit from existing therapies and no new treatments have been approved in acute migraine for over a decade. We believe oral CGRP inhibitors such as rimegepant and BHV-3500 have the potential to bring relief to millions with both acute and chronic forms of migraine and to achieve blockbuster status,”