Danish pharmaceutical company Lundbeck has agreed to acquire US-based biopharmaceutical company Longboard Pharmaceuticals for a total equity value of around $2.6bn.
Under the terms of the agreement, Lundbeck will begin a tender offer to purchase all outstanding shares of Longboard common stock, for $60 per share in cash.
The cash consideration represents a 77% premium to the 30-day volume-weighted average price (VWAP) of Longboard shares, as of 30 September 2024.
Lundbeck will acquire any Longboard shares not tendered into the offer through a merger for the same consideration as the tender offer.
The board of directors of both companies unanimously approved the proposed acquisition, which will be implemented as soon as the closing of the tender offer.
The transaction is expected to close in the fourth quarter of 2024, subject to the tender of the majority of Longboard voting shares, regulatory approvals, and other customary conditions.
Lundbeck intends to fund the transaction through existing cash and bank financing facility.
Lundbeck president and CEO Charl van Zyl said: “This transformative transaction will become a cornerstone in Lundbeck’s neuro-rare franchise, with the potential to drive growth into the next decade.
“Bexicaserin addresses a critical unmet need for patients suffering from rare and severe epilepsies, for which there are very few good treatment options available.
“With this acquisition, we continue to execute our Focused Innovator strategy, transforming the lives of patients suffering from severe brain disorders.”
Longboard is a clinical-stage biopharmaceutical company focused on developing novel, transformative medicines for neurological diseases.
Its lead candidate, bexicaserin, is a novel 5-HT2C agonist being developed for the treatment of seizures associated with Developmental and Epileptic Encephalopathies (DEEs).
Currently, bexicaserin is evaluated in a Phase 3 DEEp SEA study for the treatment of seizures associated with Dravet syndrome in participants two years of age and older.
Lundbeck said the acquisition is a strategic milestone that will enhance and complement its strategy and advance its goal of building a neuro-rare disease franchise.
The company will obtain access to bexicaserin for the treatment of DEEs, including Dravet syndrome, Lennox-Gastaut syndrome, and other rare epilepsies.
The acquisition is in line with its expertise in delivering advanced treatments and re-establishes its scientific and commercial leadership in rare epilepsies, said Lundbeck.
PJT Partners served as the exclusive financial advisor and Baker McKenzie as the legal advisor to Lundbeck on this transaction.
Evercore and Centerview Partners served as financial advisors and Cooley as legal advisor to Longboard.
Longboard president and CEO Kevin Lind said: “I am incredibly proud of what our team has achieved; delivering groundbreaking data with a differentiated and inclusive clinical approach to address the needs of a wide range of DEEs and obtaining Breakthrough Therapy designation.
“I would like to thank the entire DEE community, in particular bexicaserin’s study participants and their caregivers as well as the advocacy groups, investigators, sites and coordinators for their support and partnership.
“Lundbeck’s remarkable capabilities will accelerate our vision to provide increased equity and access for underserved DEE patients with significant unmet medical needs.”
