This blog is another installment in a series, Innovations Advanced by M&A, that underscores the importance of mergers and acquisitions in ensuring a competitive and vibrant biopharmaceutical landscape for patients. You can find previous blogs in this series here.
For many small and early-stage life science companies, making the leap from research and development (R&D) to manufacturing and distribution of a new treatment can be an insurmountable barrier. It’s why mergers and acquisitions (M&A) are fundamental in allowing biopharmaceutical companies of all sizes to leverage the specialized capabilities and expertise needed to transition into the next resource-demanding phase of bringing a new medicine to market. Pfizer’s acquisition of Biohaven Pharmaceuticals, for example, accelerated the global distribution of two new migraine therapies, while also allowing the early-stage company to continue pursuing new scientific breakthroughs.
Founded by Yale Professor Dr. Vlad Coric in 2013, Biohaven was focused on addressing unmet needs for patients with neurologic conditions, including migraines. Migraines affect 1 in 6 Americans, and can impair patients’ productivity, family relationships and overall health. The burden of migraines also carries an economic toll, costing the U.S. economy an estimated $22 billion each year.
By 2020, Biohaven had successfully secured FDA approval for Nurtec, a migraine treatment that blocks the protein calcitonin gene-related peptide (CGRP) from binding to receptors in the brain. In the same time, Biohaven had also built a robust pipeline of investigational therapies — including Zavzpret, a second promising CGRP blocker — and other early-stage treatments for conditions like spinal muscular atrophy, multiple sclerosis and obsessive-compulsive disorder.
In 2022, Pfizer acquired Biohaven and its portfolio of CGRP blockers, while simultaneously spinning off a new company that retained the Biohaven name and many of the promising neurologic discoveries in their pipeline.
“Pfizer’s capabilities will accelerate our mission to deliver our migraine medicines to even more patients, while the new R&D company is well positioned to bring value to patients and shareholders by focusing on our innovative pipeline for neurological and other disorders.”
Under Dr. Coric’s continued leadership, the deal provided Biohaven critical investment to continue pursuing groundbreaking discoveries for patients. Meanwhile, Pfizer’s established global infrastructure and deep regulatory expertise allowed the company to accelerate the global distribution of Nurtec to patients affected by migraines, and quickly secure FDA approval for Zavzpret — a novel CGRP blocker that can be administered via a nasal spray.
“We believe Pfizer is uniquely positioned to help the portfolio reach its full potential given our leading scale and capabilities, including comprehensive field force engagement with Primary Care Physicians, specialists and health systems delivering the right information at the right time.”
— Nick Lagunowich, Global President, Pfizer Internal Medicine
As this example illustrates, M&A is fundamental in allowing life sciences companies of all sizes to capitalize on their unique own skills and infrastructure, and “pass the baton” to unlock the complementary capabilities needed to advance new medicines to patients. Policymakers must recognize this unique and fundamental role of M&A in the life sciences.