Shares of Biohaven Ltd. (NYSE: BHVN) were soaring 12.7% as of 11:23 a.m. ET on Tuesday after skyrocketing as much as 21.4% earlier in the day. The big gain came after Pfizer (NYSE: PFE) completed its acquisition of Biohaven Pharmaceutical on Monday. 

This transaction could be somewhat confusing. Immediately before the close of Pfizer's acquisition, Biohaven Pharmaceutical spun off Biohaven Ltd. as a new company. The "old" Biohaven, with its migraine drugs Nurtec ODT and zavegepant, became a wholly owned subsidiary of Pfizer. The "new" Biohaven retained the previous management team, along with a pipeline focusing on neuroscience and rare diseases.

Investors clearly appear to be optimistic about the prospects for the "new" Biohaven. The newly formed company begins its journey with a strong financial position. Biohaven has no debt and around $257.8 million in cash. The company also has the top executives that led the original Biohaven to successfully develop and commercialize the market-leading migraine drug Nurtec ODT. 

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Source Fool.com