Royalty Pharma nabs $475M milestone from Pfizer upon migraine nasal spray OK
The FDA’s recent approval of Pfizer’s migraine nasal spray was also good news for Royalty Pharma, triggering a whopping $475 million milestone payment.
Royalty first struck a deal in 2020 to offer Biohaven $250 million in development funding for the program, zavegepant, in exchange for milestones and future royalties. This marks the first return on that deal for Royalty, a specialist in such pacts and an accelerated one at that, according to the company.
Pfizer inherited the deal when it bought Biohaven for $11.6 billion last October, and it’s set to pay Royalty more if other goals are met over the next 10 years.
Like the other Biohaven programs that Pfizer bought, Zavzpret blocks the CGRP, or calcitonin gene-related peptide, receptor. But compared to oral options, its intranasal delivery promises to result in even faster relief as an acute treatment.
In the same 2020 deal, Royalty had also picked up a small percentage of royalties for Biohaven’s flagship migraine drug Nurtec, plus rights to a series of payments between 2025 and 2030 for an additional $200 million.