Lundbeck Acquires Longboard to Strengthen Neuroscience Pipeline

Rare Daily Staff

Lundbeck agreed to acquire Longboard Pharmaceuticals for $2.6 billion, which has a late-stage experimental therapy in development for developmental and epileptic encephalopathies including Dravet syndrome and Lennox-Gastaut syndrome.

Longboard’s bexicaserin, a potential blockbuster, has shown encouraging anti-seizure effects to date in preclinical and clinical studies. A global phase 3 trial evaluating bexicaserin for the treatment of seizures associated with Dravet syndrome was initiated in September 2024.

The deal advances Lundbeck’s strategic efforts to build a neuro-rare disease franchise. Lundbeck is working to establish its scientific and commercial leadership in rare epilepsies. Bexicaserin has received Breakthrough Therapy Designation from the U.S. FDA and is expected to become a cornerstone of Lundbeck’s new neuro-rare disease franchise.

Lundbeck said it complements its existing mid- to late-stage pipeline and diversifies revenue growth following the expected launch in the fourth quarter of 2028 and with a global peak sales potential estimated by Lundbeck between $1.5 billion to $2 billion.

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 per share in cash. The cash consideration represents a 77 percent premium to the 30-day volume-weighted average price of shares of Longboard common stock as of September 30, 2024.

When the tender offer is consummated, Lundbeck will acquire any shares of Longboard common stock not tendered into the tender offer through a merger for the same per share consideration as will be payable in the tender offer. The merger will occur as soon as practicable after the closing of the tender offer.

Lundbeck expects to fund the acquisition through existing cash resources and its existing bank financing facility.