DENMARK—Danish pharmaceutical giant Lundbeck has announced its acquisition of Longboard Pharmaceuticals, a US-based company valued at approximately US$2.6 billion.
This strategic move is expected to enhance Lundbeck’s portfolio, particularly in neurological disorders.
Longboard Pharmaceuticals, headquartered in La Jolla, California, is a clinical-stage biopharmaceutical company dedicated to developing innovative treatments for neurological diseases.
As part of the acquisition, Lundbeck intends to make a tender offer for all outstanding shares of Longboard common stock, offering shareholders an attractive price of $60.00 per share in cash.
Both companies’ boards of directors have unanimously approved the transaction, which is anticipated to finalize in the fourth quarter of 2024.
This acquisition reinforces Lundbeck’s commitment to expanding its therapeutic offerings and aligns with its vision of addressing critical unmet medical needs in neurology.
One of the key assets Lundbeck will gain through this acquisition is bexicaserin, a novel 5-HT2C agonist currently under development for treating seizures associated with developmental and epileptic encephalopathies (DEEs).
These conditions include Dravet syndrome, Lennox-Gastaut syndrome, and other rare forms of epilepsy, which often present significant treatment challenges.
So far, bexicaserin has demonstrated promising anti-seizure reduction results in both preclinical and clinical studies, and it is now being evaluated in a global Phase III clinical program.
In a recent address, Charl van Zyl, CEO of Lundbeck, emphasized the transformative nature of this acquisition, describing it as a cornerstone for Lundbeck’s neuro-rare franchise.
He remarked on the potential this deal has to drive significant growth for the company into the next decade.
Van Zyl also highlighted the urgent need for effective treatments for patients suffering from rare and severe epilepsies, noting that the current options available are limited.
He stated that through this acquisition, Lundbeck continues to execute its “Focused Innovator” strategy, which aims to transform the lives of patients with severe brain disorders.
Moreover, Kevin R. Lind, CEO of Longboard, expressed his enthusiasm about the merger, stating that Longboard was founded with the mission of transforming the lives of individuals grappling with debilitating neurological conditions.
He took pride in the team’s achievements, which included delivering groundbreaking data and adopting a differentiated and inclusive clinical approach to meet the needs of a diverse range of DEEs.
Longboard has also obtained Breakthrough Therapy designation for its innovative therapies.
The completion of this deal is subject to several conditions, including the tender of at least a majority of Longboard’s outstanding voting shares, receipt of regulatory approvals, and the fulfilment of other customary conditions.
In March 2024, Lundbeck, in collaboration with Otsuka Pharmaceuticals Europe, received EU approval for its drug Abilify Maintena to treat schizophrenia.
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