Lundbeck, a company focused on the development of neuroscience drugs, has announced its strategic acquisition of Longboard Pharmaceuticals in a deal valued at $2.6 billion. The acquisition highlights Lundbeck’s entry into the epilepsy market, particularly targeting a rare inherited seizure disorder with limited available treatments.
Under the terms of the acquisition, Lundbeck will pay $60 per share in cash for Longboard, representing a 54.2% premium over Longboard’s closing stock price on the preceding Friday and a 77% premium over the stock’s average price for September. Longboard’s shares were initially priced at $16 when the company went public in 2021.
Longboard Pharmaceuticals’ key drug candidate, bexicaserin, is currently in late-stage clinical development for developmental and epileptic encephalopathies (DEEs), which include Dravet syndrome and Lennox-Gastaut syndrome—both part of a group of rare epilepsy disorders. Bexicaserin, an orally administered small molecule, functions as an agonist of the 5-HT2C receptor, which plays a role in regulating seizure severity. Unlike Fintepla, a UCB drug targeting the same receptor but with a black box warning for cardiovascular issues, bexicaserin is designed for selective targeting to minimize adverse effects.
Bexicaserin has been a standout in Longboard’s pipeline, especially after Phase 1b/2a trials showed a promising 53.3% median reduction in seizure frequency among DEE patients over a 75-day period. These results led Longboard to tout the drug as potentially best-in-class, and it saw a substantial surge in its stock value by over 300% following the announcement. Lundbeck’s investor presentation noted that nine-month open-label data sustained these optimistic results, showing a 57.7% reduction in countable motor seizures. Furthermore, a global Phase 3 trial for Dravet patients aged two and older began in September, with plans to assess the drug in roughly 480 patients with various DEEs.
Apart from bexicaserin, Longboard’s pipeline includes LP659, a modulator of the S1P receptor with potential for treating neuroinflammatory disorders. While a Phase 1 single-ascending dose study has been completed, further development awaits the resolution of a partial clinical hold.
Lundbeck, headquartered in Copenhagen, has a solid track record with its flagship products, such as Rexulti—a drug for schizophrenia and depression that recently expanded its indications to include agitation in Alzheimer’s patients. This product alone generated about $661 million last year, marking a 16% increase from the previous year.
The strategic focus for Lundbeck has been on expanding its pipeline within rare neurological diseases, with bexicaserin eyed for a potential market launch in the fourth quarter of 2028. The acquisition is seen as a cornerstone for Lundbeck’s aspirations in the neuro-rare disorder market, with forecasted peak sales for bexicaserin ranging between $1.5 billion and $2 billion. Lundbeck’s President and CEO, Charl van Zyl, emphasized the transformational nature of this deal, noting that bexicaserin addresses the critical unmet needs of patients afflicted by severe epilepsies.
The deal has been unanimously approved by the boards of directors of both companies but remains subject to approval from a majority of Longboard’s shareholders and must clear regulatory reviews. The transaction is expected to conclude by the end of the year.
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