Danish pharmaceutical giant Lundbeck has announced it will acquire Longboard Pharmaceuticals (LBPH, Financial) for an equity value of $2.6 billion. Following the announcement, Longboard's stock surged over 50% in pre-market trading.
Prior to the acquisition news, Longboard had a market capitalization of approximately $1.5 billion with its stock closing at $38.90, significantly below the proposed acquisition price. Lundbeck will offer $60 per share for all outstanding common stock of Longboard, a deal approved by both companies' boards and expected to complete in the fourth quarter of this year.
This strategic acquisition will provide Lundbeck with bexicaserin, a drug under development for treating epilepsy seizures related to DEE, including Dravet syndrome, Lennox-Gastaut syndrome, and other rare epileptic conditions. Lundbeck plans to fund the transaction through existing free cash flow and bank financing, with integration costs estimated at around $80 million, impacting the 2024 financial report.
Analysts suggest that this acquisition will enhance Lundbeck's leadership in the field of neurological rare diseases, expanding its innovative treatment options and strengthening its research pipeline and future product offerings. Lundbeck, headquartered in Denmark, is known for developing and selling treatments for brain diseases and neurological rare diseases, including depression, schizophrenia, Alzheimer's, and Parkinson's disease.
