Denmark-based pharmaceutical company H Lundbeck has signed a definitive agreement to acquire US-based Alder BioPharmaceuticals for £1.5bn in net cash, on a fully diluted basis.

Under the terms of the agreement, Lundbeck would start a tender offer for all outstanding shares of Alder, while Alder stockholders would be offered an upfront payment for $18 (£14) per share in cash

In addition, Alder stockholders are also provided with a non-tradeable Contingent Value Right (CVR) that enables them to an additional $2 (£1.6) per share upon approval of eptinezumab by the European Medicines Agency (EMA), representing a total potential consideration of $20 (£16) per share.

Alder president and chief executive officer Bob Azelby said: “As a global leader in neuroscience research with products registered in more than 100 countries and a strong network of neurology specialists, Lundbeck is the ideal partner to advance Alder’s mission of changing the treatment paradigm for migraine prevention.

“We believe this positions eptinezumab for a successful launch both in and outside of the United States. Importantly, today’s news provides Alder shareholders with significant and immediate cash value, as well as the ability to benefit further once eptinezumab is approved by the EMA.”

Alder is developing eptinezumab and ALD1910

Alder is a clinical-stage biopharmaceutical company engaged in transforming migraine treatment through the discovery, development and commercialisation of novel therapeutic antibodies.

Eptinezumab is an investigational monoclonal antibody (mAb) designed for immediate and complete bioavailability for suppression of calcitonin gene-related peptide (CGRP), a neuropeptide thought to play crucial role in mediating and initiating migraines.

Pending the US Food and Drug Administration (FDA) approval, Eptinezumab would become the first IV CGRP therapy for migraine prevention once approved.

ALD1910 is a mAb aimed at inhibiting pituitary adenylate cyclase-activating polypeptide (PACAP) for migraine prevention.

The acquisition enables Lundbeck to expand its offerings for a range of brain diseases, and further enhance its capabilities to deliver future biological innovations in brain diseases.

The proposed transaction is expected to strengthen Lundbeck’s operations, accelerate its late-stage pipeline, and provides access to new capabilities in the monoclonal antibody field.