Lundbeck to buy Longboard Pharmaceuticals for $2.6bn

Lundbeck has entered an agreement to acquire Longboard Pharmaceuticals for an equity value of $2.6 billion, aiming to strengthen its portfolio in the field of neuro-rare conditions. As part of the agreement, Lundbeck has started a tender offer to purchase all outstanding shares of Longboard’s common stock. The transaction holds a net worth of $2.5 billion, assessed on a fully diluted basis. This acquisition is in line with Lundbeck’s focused innovator strategy, and it represents a significant step forward by incorporating Longboard’s key asset, bexicaserin, into its portfolio. Bexicaserin is targeted at treating developmental and epileptic encephalopathies (DEEs).

Currently, bexicaserin is undergoing evaluation in a global Phase III clinical program called DEEp SEA, which includes participants diagnosed with Lennox-Gastaut syndrome, Dravet syndrome, and other DEE syndromes. This acquisition is expected to serve as a cornerstone for Lundbeck’s neuro-rare franchise, potentially driving growth into the next decade. Bexicaserin addresses a critical unmet need for patients suffering from rare and severe epilepsies, where available treatment options are limited.

Lundbeck’s president and CEO, Charl van Zyl, expressed optimism about the acquisition, stating that this transformative transaction will be a significant asset for Lundbeck’s neuro-rare franchise. The transaction is expected to provide new avenues for growth and innovative treatments for patients with rare epileptic conditions. Van Zyl emphasized the importance of addressing the unmet medical needs of patients suffering from these severe illnesses.

Kevin Lind, president and CEO of Longboard, conveyed his gratitude to the entire DEE community, particularly acknowledging the participants of bexicaserin’s studies, their caregivers, advocacy groups, investigators, sites, and coordinators for their support and collaboration. He expressed confidence that Lundbeck’s extensive capabilities will accelerate their mission to increase equity and access for underserved DEE patients with significant unmet medical needs.

The boards of directors of both Lundbeck and Longboard have unanimously approved the transaction. The deal is expected to close in the fourth quarter of 2024, subject to the tender of at least a majority of the total number of outstanding voting shares of Longboard, along with the receipt of regulatory approvals and the fulfillment of other customary conditions.

In related news, Lundbeck, in collaboration with Otsuka Pharmaceuticals Europe, received EU approval in March 2024 for Abilify Maintena for the treatment of schizophrenia. This approval marks another significant milestone for Lundbeck in expanding its therapeutic offerings.

Overall, the acquisition of Longboard Pharmaceuticals by Lundbeck represents a strategic move to enhance its capabilities and portfolio in neuro-rare conditions, particularly with the addition of bexicaserin. This transaction underscores Lundbeck’s commitment to innovation and addressing critical unmet medical needs in the neuro-rare disease space, with the potential to significantly impact the lives of patients suffering from rare and severe epilepsies.