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March 13, 2018

Biohaven pays $50M to restructure migraine drug license agreement

By Christopher Hoffman

Biohaven Pharmaceuticals Holding Company Ltd. announced this week it would pay Bristol-Myers Squibb $50 million as part of a deal to restructure its licensing agreement with the pharmaceutical giant for two cutting edge migraine drugs the New Haven firm is developing.

"This license agreement restructuring creates significant value for Biohaven and enhances our strategic flexibility moving forward,” Biohaven CEO Dr. Vlad Coric said.

The agreement will reduce Biohaven’s royalty payments to Bristol-Myers Squibb after the drugs are approved and marketed, Biohaven said. The reduction will be “in the mid-single digits,” setting the new royalties at “percentages in the low-to-mid teens,” the firm said.

Bristol-Myers Squibb also surrendered its right of first negotiation for intellectual property rights and to enter a license agreement with Biohaven on certain issues, Biohaven said.

Biohaven remains obligated to make development and milestone payments to Bristol-Myers Squibb in exchange for assistance in developing and marketing the drugs, the company said.

The two drugs covered by the agreement are the small molecule calcitonin gene-related peptide (CGRP) receptor antagonist platform, including its product candidates rimegepant, a potentially best-in-class CGRP receptor antagonist for the acute treatment of migraine, and BHV-3500, a third-generation antagonist to treat and prevent migraines.

The company raised $55 million to pay for the restructuring through the private sale of 2 million shares of common stock to institutional investors at $27.50 a share, according to the company.

Christopher Hoffman can be reached at news@newhavenbiz.com

 

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