Biohaven Pharmaceutical Holding (BHVN), mcap=$10.2bn, price $143 vs $140

– Merger arb in PFE acquisition of BHVN.
– Aside from a 4% spread to cash consideration, investors ascribe zero value to newco shares to be received in the merger.
– Regulatory and financing risks are de minimus.
– Merger to close in early 2023.

Valuation: Merger consideration of $148.5 in cash and $2.65 in estimated newco shares value.

Exp. gain: 7.5% in 8 months.

Full BHVN write-up (free guest account required):

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