Lundbeck Acquires Longboard Pharma for USD 2.6B

By Bobby Samwell • Tuesday, October 15 10:21 • Permanent Link

Lundbeck, a biopharmaceutical company based in Denmark, has announced the acquisition of Longboard Pharmaceuticals in a strategic deal valued at approximately USD 2.6 billion. The acquisition is expected to significantly enhance Lundbeck's neuroscience pipeline, particularly in the area of developmental and epileptic encephalopathies (DEEs).

The lead asset in this acquisition is Bexicaserin, which is currently in late-stage development for the treatment of DEEs, including dravet syndrome and lennox-gastaut syndrome. Bexicaserin has shown encouraging anti-seizure effects in preclinical and clinical studies, and it holds blockbuster potential. A global phase III trial (DEEP SEA) evaluating Bexicaserin for the treatment of seizures associated with dravet syndrome was initiated in September 2024.

The total transaction value is approximately USD 2.6 billion in equity value and USD 2.5 billion net of cash, which is approximately DKK 17 billion. Lundbeck plans to fund the acquisition through existing cash resources and bank financing.

With the acquisition, Lundbeck aims to build a neuro-rare disease franchise and enhance its capabilities and presence within neuro-rare conditions. Bexicaserin is expected to become a cornerstone of Lundbeck’s new neuro-rare disease franchise, with a global peak sales potential estimated between USD 1.5 * 2 billion.

Additionally, Lundbeck expects to recognize integration costs of approximately USD 80 million, which will predominantly impact 2024 and will be adjusted for in adjusted EBITDA. The company's financial guidance for 2024 is confirmed.

Longboard Pharmaceuticals, the company being acquired, is a clinical-stage biopharmaceutical company focused on developing novel, transformative medicines for neurological diseases. Its lead asset, Bexicaserin, has received breakthrough therapy designation from the U.S. FDA for the treatment of seizures associated with DEEs.

The acquisition is expected to close in the fourth quarter of 2024, subject to the tender of at least a majority of the total number of Longboard outstanding voting shares, receipt of required regulatory clearances, and other customary conditions. Lundbeck's financial advisor in this transaction is PJT Partners LP, and Baker McKenzie is acting as the legal advisor.

Following these announcements, the company's shares moved -0.1%, and are now trading at a price of $58.92. Check out the company's full 8-K submission here.

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