Wednesday’s Top Gainers; Biohaven Pharmaceuticals, Appian Corporation, and AdaptHealth

by Market Updates and Alerts |

Pfizer to acquire Biohaven for $11.6 Billion

Biohaven Pharmaceuticals Holding Company Ltd. (NASDAQ: BHVN) jumped 68.39% after Pfizer Inc. (NYSE: PFE) said it would acquire Biohaven for $11.6 billion. Pfizer is betting on Biohaven Pharmaceuticals’ ability to boost sales for its top-selling innovative migraine drugs. Through the transaction, Pfizer will access Rimegepant, which is a migraine drug produced by Biohaven popular as calcitonin gene-related peptide inhibitors.

Rimegepant, sold in the US as Nurtec ODT, was granted approval in 2020 for the treatment of acute migraine attacks, and in May 2021, it received enhanced permission for the prevention of migraine attacks. In 2021, the treatment generated $462.5 million in revenue.

Biohaven stockholders, such as Pfizer, also will receive 0.5 of a share in a new publicly listed business that will continue to develop Biohaven’s non-CGRP medicines.

Appian awarded $2.04 billion in the case against Pegasystems

Appian Corporation (NASDAQ: APPN) was up 38.59% after it was awarded $2.04 billion by7 a Virginia Jury in a case against Pegasystems Inc. over misappropriation of trade secrets. The Fairfax County Circuit Court jury awarded the damages on Monday after a seven-week trial and will be the largest award in the history of Virginia.

The McLean, Virginia-based Appian said in its May 2020 claim that Pegasystems had retained an employee of a government contract between 2021 and 2014 to get its software, which helped it improve its products and better train its sales agents. The company stated that Pegasystems referred internally to its scheme as a “Project Crush” and the contractor as a “spy” with other workers using bogus credentials to deceive Appian into offering access.

AdaptHealth announces Q1 2022 results and shares repurchase program

AdaptHealth Corp (NASDAQ: AHCO) is up 30.01% after announcing its financial results for Q1 2022 and a share buyback program for around $200 million. The company had solid revenue and adjusted EBITDA during the quarter after overcoming continuing challenges due to CPAP equipment shortages. AdeptHealth reported net revenue of $706.2 million relative to $482.1 million in Q1 2021, representing a YoY increase of 46.5%. Net income attributed to the company was $41.8 million or $0.08 per diluted share. A year-ago net loss attributable to the company was $4 million or $0.08 per diluted share.

For the fiscal year 2022, the company expects net revenue of $2.84 billion to $3.04 billion, up from the previous guidance of $2.823 billion or $3.025 billion. AdaptHealth expects adjusted EBITDA of $615 million to $675 million, up from the previous guidance of between $610 million and $670 million.

Also, the company announced a share repurchase program of around $200 million of its common shares through December 31, 2022. Timing and the number of shares to buyback will be based on market conditions.