The acquisition will bolster Lundbeck’s pipeline in neuro-rare diseases with Longboard’s drug candidate to treat rare epilepsies
Shares of Longboard Pharmaceuticals surged over 50% pre-market Monday, pushing the stock into the top five most trending tickers on Stocktwits before the bell.
Denmark-based H. Lundbeck A/S and Longboard announced a deal for Lundbeck to acquire Longboard.
Under the agreement, Lundbeck will offer $60 per share in cash for all outstanding Longboard common stock, valuing the transaction at approximately $2.6 billion in equity and $2.5 billion net of cash.
Lundbeck, known for its focus on serious brain diseases, sees this acquisition as a boost to its neuro-rare condition pipeline.
Longboard’s lead asset, bexicaserin, a potential blockbuster drug for rare epilepsies, is expected to start Phase 3 testing by the end of 2024.
The deal also brings Longboard’s LP659, an S1P modulator showing greater specificity than current S1P modulators in the market, to Lundbeck’s portfolio.
LP659’s Phase 1 data has been described by some Wall Street analysts as “promising,” with potential for a better therapeutic window. S1P modulators are immunomodulatory drugs, commonly used in treating conditions like multiple sclerosis.
“This transformative transaction will become a cornerstone in Lundbeck’s neuro-rare franchise, with a potential to drive growth into the next decade,” said Lundbeck CEO Charl van Zyl.
The deal, expected to close in the fourth quarter of 2024, is contingent on regulatory approvals and the tendering of a majority of Longboard’s voting shares.
Lundbeck said it plans to fund the acquisition with its existing cash and financing resources.
LBPH shares have risen nearly 55% year to date as of the last close.
