Lundbeck makes huge bid for Longboard
Danish Lundbeck has made a bid for American Longboard Pharmaceuticals worth USD 2.6 billion. With this deal, they would get access to Bexicaserin, a promising treatment for severe epilepsy syndromes. Lundbeck shares are rising on the news.
Lundbeck is a global pharmaceutical company focused on treatments for neurological and psychiatric diseases. It is particularly known for its treatments for depression, schizophrenia, and Alzheimer’s disease. In recent years, it has increasingly focused on rare neurological diseases with a great unmet medical need.
As part of that focus, they are now acquiring Longboard Pharmaceuticals, which primarily provides access to Bexicaserin. The drug candidate is being developed for the treatment of severe epilepsy syndromes, where many patients do not respond to existing treatments. Clinical studies have shown promising results in terms of both efficacy and safety.
Giving hope to patients with rare epilepsy
– This transformative transaction will become a cornerstone in Lundbeck’s neuro-rare franchise, with a potential to drive growth into the next decade. Bexicaserin addresses a critical unmet need for patients suffering from rare and severe epilepsies, for which there are very few good treatment options available, Lundbeck CEO Charl van Zyl comments.
Bexicaserin is currently being evaluated in phase III and has previously been awarded Rare Pediatric Disease and Orphan Drug status by the US Food and Drug Administration (FDA). In addition, the FDA has granted Breakthrough Therapy designation for Bexicaserin for treating seizures linked to Developmental and Epileptic Encephalopathies (DEEs) in patients from two years of age and above.
Potentially disruptive deal
– 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, says B Riley analytic Kalpit Patel, according to Reuters.
Lundbeck aims to market launch Bexicaserin by the end of 2028 and predicts that the drug could reach peak sales of between USD 1.5 billion and USD 2 billion. The deal could thus be transformative for Lundbeck, as it achieved sales of just under DKK 20 billion last year.
The USD 60 per share bid sent Longboard Pharmaceuticals soaring by over 50 per cent on Nasdaq, while Lundbeck shares advanced just over 5 per cent.