Biohaven

Biohaven is a biopharmaceutical company that develops drugs aimed at treating neurological diseases.

History

2025: Kickbacks to doctors for promoting their migraine drug

On January 24, 2025, the US Department of Justice announced that the pharmaceutical company Pfizer agreed to pay almost $60 million to settle claims against its subsidiary Biohaven Pharmaceutical Holding Company, which it acquired in 2022 for $11.5 billion. That firm is accused of paying kickbacks to doctors.

It is alleged that from March 1, 2020 to September 30, 2022, Biohaven paid unlawful remuneration to medical professionals for promoting its migraine drug Nurtec ODT. The money was transferred in the form of speaker fees and in the form of payment for banquets in expensive restaurants. It is emphasized that some doctors attended the same events several times, which "did not give any educational benefit." Thus, Biohaven is alleged to have knowingly facilitated false claims under Medicare (the national health insurance program in the United States) and other federal health programs .

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Фото: Freepik

Patients deserve the right to know that a doctor prescribes drugs for them based on his medical decision, and not as a result of financial incentives from pharmaceutical companies, said Trini Ross, US Attorney for the Western District of New York.

An agreement on payments was reached during the proceedings in a lawsuit filed in August 2021 in federal court in Rochester (New York) by Patricia Frattasio, a former sales specialist in neuroscience at Biohaven. The total amount of compensation, as stated in the message of the US Department of Justice, is $59.75 million. Of these, Frattasio will receive about $8.4 million. Another approximately $41.8 million will go to the federal government, and $9.5 million to state Medicaid programs.^[1]

2022: Pfizer bought Biohaven for $11.6 billion

In early May 2022, Pfizer announced the purchase of migraine drug manufacturer Biohaven for $11.6 billion. The deal gives Pfizer control of a large portfolio of peptide drugs linked to the calcitonin gene. The purchase is expected to be completed in early 2023.

Biohaven's business in the field of oral peptide inhibitors will be able to grow to more than $6 billion at the peak of sales, said Aamir Malik, Pfizer's director of business innovation. According to him, this will contribute to the company's existing plan to increase revenue by 2030, taking into account the risk of $25 billion due to business development. Nurtec, a market-selling migraine drug, will be the main target of the deal.

Pfizer bought a manufacturer of migraine drugs for $11.6 billion

For May 2022, Pfizer will pay $148.5 apiece for the remainder of Biohaven's shares, representing a 33% premium to Biohaven's weighted average sales price since 2019. In addition to Nurtec and five preclinical candidates for peptides, Biohaven said it submitted an application to the Food and Drug Administration (FDA) in March 2022 for a regular as an intranasal spray to treat acute migraine.

{{quote 'We believe Pfizer is uniquely positioned to help the portfolio reach its full potential given our leading scale and capabilities, including integrated engagement with primary care physicians, professionals and healthcare systems, providing the right information at the right time,' Pfizer Internal Medicine President Nick Lagunovich said. }} Not all Biohaven joins Pfizer. Non-peptide program projects will remain in the company. Existing Biohaven shareholders, including Pfizer, will receive 0.5 new shares for each old share in the company. The new company will retain the name Biohaven and its CEO, as well as other executives. After the acquisition, the new Biohaven company will be entitled to royalties from the sales of Nurtec and Zavegepant in the United States worth more than $5.25 billion.^[2]

Notes