Danish
drugmaker Lundbeck has agreed to spend $2.6 billion acquiring a young
biotechnology company with an experimental brain medicine that could
become a blockbuster product.
- Longboard was formed in January 2020 by Arena Pharmaceuticals, Inc. to advance a portfolio of centrally acting product candidates designed to be highly selective for specific G protein-coupled receptors (GPCRs).
- Longboard’s lead asset, bexicaserin, is under development for neurological diseases, including Dravet syndrome.
Longboard Pharmaceuticals to be acquired by Lundbeck (HLUYY) for $60.00 per share in cash
- H.
Lundbeck A/S (HLUYY) and Longboard Pharmaceuticals (LBPH) announced an
agreement for Lundbeck to acquire Longboard. Under the terms of the
agreement, Lundbeck will commence a tender offer for all outstanding
shares of Longboard common stock, whereby Longboard shareholders will be
offered a payment of $60.00 per share in cash. The transaction is
valued at approximately $2.6 billion equity value and $2.5 billion (~DKK
17 billion) net of cash, on a fully diluted basis.
- Through the acquisition of Longboard, Lundbeck gains access to bexicaserin, a novel 5-HT2C agonist in development for the treatment of seizures associated with DEEs, including Dravet syndrome, Lennox-Gastaut syndrome, and other rare epilepsies.
- Under the terms of the agreement, Lundbeck will commence a tender offer for all outstanding shares of Longboard common stock, whereby Longboard shareholders will be offered a payment for $60 per share in cash. The cash consideration represents a 77% premium to the 30-day volume-weighted average price of shares of Longboard common stock as of September 30, 2024.
