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Biohaven, Bristol-Myers Squibb restructure licensing deal for migraine drugs

New Haven, Conn.-based Biohaven Pharmaceutical Holding Co. Ltd. restructured its licensing deal with Bristol-Myers Squibb Co. to reduce how much in royalties it will pay on sales of acute migraine treatments rimegepant and BHV-3500.

Under the restructuring, Biohaven will pay $50 million for a low single-digit reduction in the royalties on net sales of rimegepant and a mid-single-digit reduction in the royalties on net sales of BHV-3500.

Under the original agreement, Biohaven was to pay a tiered royalty with percentages in the low- to mid-teens.

The restructuring also removes Bristol-Myers' right of first negotiation to reclaim its intellectual property rights or enter into a licensing deal with Biohaven once rimegepant's phase 3 trial results are available.

It also clarifies that Biohaven could potentially license rimegepant or BHV-3500 to another company.

Other parts of the initial licensing deal, such as Biohaven's development and commercial milestone payment responsibilities toward Bristol-Myers, remain unchanged.

Biohaven is funding the $50 million payment through a private placement of 2 million common shares priced at $27.50 each.

The offering is expected to close March 14.

Biohaven Pharmaceutical is investigating rimegepant as an acute treatment for migraine patients in two phase 3 trials, while a phase 1 study for BHV-3500 to treat migraine and prevent chronic and episodic migraine will begin in the first half of 2018.

Rimegepant and BHV-3500 belong to a class of drugs known as calcitonin gene-related peptide, or CGRP, receptor antagonists that block a small protein found in high levels in the sensory nerves of the head and neck during migraine attacks.