Lundbeck to take over Longboard Pharma in US$2.6bn transaction

Danish H. Lundbeck A/S has announced to acquire  Californian Longboard Pharmaceuticals Inc in a strategic US$2.6bn transaction, significantly enhancing its neuroscience pipeline through integration of Longboard’s late-stage experimental programmes for 11 rare developmental and epileptic Encephalopathies (DEEs). Particularly, Longboard’s Phase III lead candidate, bexicaserin, a highly specific 5-hydroxytryptamine-2C (5.HT2C) receptor super-agonist, holds blockbuster potential to treat patients diagnosed with Dravet syndrome, Lennox-Gastaut syndrome, and other DEE syndromes. The  transaction value would be approximately US$2.6bn in equity and US$2.5bn net of cash on a fully diluted basis.

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 US$60 per share in cash. The board of directors of both companies have unanimously approved the transaction. The transaction is expected to close in the Q4/2024. 

DEEs are a group of severe early-childhood onset epilepsies characterised by refractory seizures and developmental delay and/or regression. Bexicaserin (LP352) is an oral, centrally acting 5- HT2C receptor super-agonist, with no observed impact on 5-HT2B and 5-HT2A receptor subtypes. Clinically, bexicaserin, has shown encouraging reduction in the number of of seizures associated with DEEs, including Dravet syndrome, Lennox-Gastaut syndrome, Tuberous sclerosis complex, CDKL5 deficiency disorder, Early infantile epileptic encephalopathy, including Ohtahara syndrome and early myoclonic encephalopathy, Infantile epileptic spasms syndrome, including West syndrome, Febrile infection-related epilepsy syndrome, Epilepsy of infancy with migrating focal seizures, Epilepsy with myoclonic-atonic seizures, otherwise known as myoclonic-atonic epilepsy (MAE) or Doose syndrome, Landau-Kleffner syndrome, and Developmental and epileptic encephalopathy with spike and wave activation in sleep (DEE-SWAS). Thus, the deal might contribute to re-establish H-Lundbeck’s previous scientific and commercial leadership in rare epilepsies. Bexicaserincompl ements Lundbeck’s mid- to late-stage pipeline and diversifies revenue growth following the expected launch in Q4/2028 and with estimated global peak sales of US$1.5bn to US$2bn.