Lundbeck to buy Longboard Pharmaceuticals in $2.6bn deal

Danish pharmaceutical group Lundbeck said on Monday that it has agreed to buy Longboard Pharmaceuticals in a $2.6bn deal.

Under the terms of the agreement, Lundbeck will pay $60 per share in cash.

Longboard is a clinical-stage biopharmaceutical company focused on developing novel, transformative medicines for neurological diseases. Its lead asset, bexicaserin, has shown encouraging anti-seizure reduction to date in preclinical and clinical studies.

Lundbeck said the bexicaserin asset complements its 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 of between $1.5bn and $2bn.

Lundbeck president and chief executive Charl van Zyl said: "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.

"With this acquisition, we continue to execute on our Focused Innovator strategy, transforming the lives of patients suffering from severe brain disorders."

The deal is expected to close in the fourth quarter of this year.