Danish pharmaceutical company H. Lundbeck A/S has announced its acquisition of Longboard Pharmaceuticals for approximately $2.6 billion.
This strategic move aims to enhance Lundbeck’s portfolio with access to Longboard’s promising epilepsy drug, leading to a significant increase in Longboard’s share prices.
Under the agreement, Lundbeck will purchase Longboard shares at $60 each, representing a premium of 54.2% over Longboard’s last closing price of $38.90. Following the announcement, Longboard’s stock surged by 43.9% in premarket trading, reaching $56.31.
The transaction is expected to finalize by the end of the fourth quarter of 2024. This acquisition aligns with Lundbeck’s focus on developing treatments for neurological conditions, including Parkinson’s disease, migraine, and Alzheimer’s disease.
Lundbeck’s newly acquired drug candidate, bexicaserin, is currently in late-stage development and is designed to treat seizures associated with Developmental and Epileptic Encephalopathies (DEEs), a group of severe early-childhood onset epilepsies. The company anticipates launching bexicaserin in the fourth quarter of 2028, with potential global peak sales estimated between $1.5 billion and $2 billion.
Currently, around 220,000 patients in the United States are affected by DEE syndromes, which are characterized by refractory seizures and developmental delays. Bexicaserin is also being tested for efficacy in patients with Dravet syndrome and Lennox-Gastaut syndrome, conditions for which effective treatments are limited. Early trials have shown encouraging anti-seizure effects, and a global late-stage study evaluating the drug for Dravet syndrome began in September.
Lundbeck CEO Charl van Zyl highlighted the importance of this acquisition in bolstering the company’s late-stage pipeline, stating that bexicaserin has the potential to become a blockbuster treatment. The deal will be financed through Lundbeck’s existing cash resources and bank financing.
Despite the positive news surrounding the acquisition, Lundbeck’s shares fell by as much as 5.9% in trading following the announcement. The deal has received unanimous approval from the boards of both companies.
Bloomberg, Reuters, and Market Watch contributed to this report.
