US-based multinational biotechnology firm Pfizer announced Tuesday it will acquire Biohaven Pharmaceuticals in an $11.6 billion cash deal.
The two companies have entered into a definitive agreement, in which the boards of directors of both firms unanimously approved the transaction.
Pfizer will pay $148.50 per share in cash to buy outstanding shares of Biohaven, according to a statement.
Despite closing Monday with a 7.9% decline, Biohaven's stock price soared 70.2% to $141.50 per share on the New York Stock Exchange during pre-market hours on Tuesday.
Biohaven is best known for developing a migraine therapy for acute treatment and prevention of migraine in adults.