H Lundbeck A/S has agreed to buy Longboard Pharmaceuticals (NASDAQ: LBPH) for $2.6 billion, marking the biggest deal ever by the Danish drugmaker as it seeks to bolster its portfolio with a potential blockbuster epilepsy drug.
Longboard shares surged 51% after the companies said Lundbeck would offer $60 each, which represents a premium of 54.2% to the stock’s last close of $38.90.
The deal adds to Copenhagen-based Lundbeck’s portfolio of treatments for neurological conditions such as Parkinson’s disease, migraine, and Alzheimer’s disease.
Lundbeck sees potential global peak sales of $1.5 billion to $2 billion from Longboard’s lead drug candidate, bexicaserin, which it plans to launch in the fourth quarter of 2028.
It plans to seek approval for the drug to treat seizures associated with a group of rare epilepsies called Developmental and Epileptic Encephalopathies (DEE), which commonly affect children.
The companies estimate that around 220,000 patients are affected by DEE syndromes in the United States.
Longboard’s bexicaserin is in late-stage development for seizures caused by Dravet syndrome as well as other DEEs, which includes Lennox Gastaut syndrome.
“The other drugs that are approved or in development, their mechanisms are different, or they’re going for just one specific type of DEE where they’re targeting, like a specific mutation,” said B Riley analyst Kalpit Patel.
Marinus Pharmaceuticals (NASDAQ: MRNS), Jazz Pharmaceuticals (NASDAQ: JAZZ), and Praxis (NASDAQ: PRAX) are developing drugs for types of epilepsies.
(Source: Reuters)
Kevin Putnam is a financial journalist and editor based in New York. He specializes in editing news and analysis related to U.S. stock market.
