Lundbeck Acquires Longboard Pharmaceuticals in $2.6bn Deal to Bolster Neurological Pipeline

Highlights:

• Strategic Acquisition: Lundbeck will acquire Longboard Pharmaceuticals for $2.6 billion, strengthening its portfolio of treatments for neurological diseases.
• Promising Drug Addition: Longboard's lead asset, bexicaserin, has shown promising anti-seizure effects, with expected global peak sales of up to $2 billion.
• Pipeline Expansion: The deal enhances Lundbeck’s mid- to late-stage pipeline and aligns with its strategy to address unmet medical needs in rare neurological conditions.

Danish pharmaceutical company Lundbeck has announced a significant acquisition, agreeing to purchase Longboard Pharmaceuticals, a US-based clinical-stage biopharmaceutical company, in a $2.6 billion deal. This acquisition is expected to strengthen Lundbeck's position in the treatment of neurological diseases, particularly in addressing severe epilepsy conditions.

Under the agreement, Lundbeck will pay $60 per share in cash for Longboard, marking a major strategic move to expand its pipeline of innovative treatments. Longboard’s lead asset, bexicaserin, has shown promising results in preclinical and clinical studies for its anti-seizure properties. The acquisition aligns with Lundbeck’s long-term strategy of becoming a leader in developing treatments for neurological and rare brain disorders.

Lundbeck expects the addition of bexicaserin to diversify its mid- to late-stage pipeline and contribute to its revenue growth following the anticipated launch of the drug in the fourth quarter of 2028. The company estimates that bexicaserin could achieve global peak sales between $1.5 billion and $2 billion, demonstrating its significant commercial potential.

Charl van Zyl, president and CEO of Lundbeck, emphasized the transformative nature of this transaction. "This acquisition strengthens our neuro-rare franchise and positions us to drive growth well into the next decade," he said. "Bexicaserin addresses a critical unmet need for patients with rare and severe epilepsies, where few effective treatment options currently exist. With this deal, we continue executing our Focused Innovator strategy, delivering life-changing treatments to patients with severe brain disorders."

The acquisition is expected to close in the fourth quarter of 2024, pending regulatory approvals and other customary conditions.