H. Lundbeck A/S is to acquire Longboard Pharmaceuticals Inc of the US for $2.6 billion in a transaction that will significantly expand the Danish company’s neurology pipeline. Longboard has a small molecule asset in Phase 3 that is being developed for the treatment of seizures associated with a group of rare epilepsies – a market segment not currently covered by the Danish company. The drug, bexicaserin, is currently in a study for Dravet syndrome, a rare form of epilepsy that begins in infancy. An estimated 10 other syndromes, including Lennox-Gastaut syndrome, could be addressed by this and other Longboard assets, according to the Danish company.
The acquisition was announced on 14 October and is expected to complete in the 2024 fourth quarter. Lundbeck will tender for all the outstanding shares of Longboard’s common stock whereby the company’s shareholders will be offered $60 per share in cash. The boards of directors of both companies have unanimously approved the transaction.
Bexicaserin is a 5-hydroxytryptamine 2c (5-HT2c) serotonin receptor agonist which plays a role in the modulation of mood, motor behaviour and appetite. Lundbeck has marketed products for epilepsy, Alzheimer’s disease and Parkinson’s disease and a pipeline of drugs for migraine prevention and other neurological disorders. The company is to finance the acquisition through existing cash resources and drawings from an existing bank facility. On 30 June, Lundbeck had cash and cash equivalents of DKK 6.153 billion ($900 million).
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