Lundbeck has announced a definitive agreement to acquire Longboard Biopharmaceuticals for approximately $2.6 billion. The acquisition aims to strengthen Lundbeck's neuro-rare disease portfolio with Longboard's lead asset, bexicaserin, a novel 5-HT2C receptor superagonist being developed for the treatment of seizures associated with developmental and epileptic encephalopathies (DEEs).
The agreement, unanimously approved by the boards of directors of both companies, involves Lundbeck commencing a tender offer for all outstanding shares of Longboard common stock at $60 per share in cash. The transaction is expected to close in the fourth quarter of 2024, subject to customary closing conditions.
Bexicaserin: A Potential Best-in-Class Treatment for DEEs
Bexicaserin is a next-generation superagonist specifically targeting 5-HT2C receptors. Preclinical and clinical studies have demonstrated encouraging anti-seizure activity, suggesting its potential to offer a highly differentiated and best-in-class profile for patients with DEEs. The drug is currently being evaluated in a global Phase III clinical program known as the DEEp Program.
DEEs are a group of severe epilepsies, including Dravet syndrome and Lennox-Gastaut syndrome, characterized by early-onset, frequent, and often drug-resistant seizures, along with developmental delays and cognitive impairment. These conditions represent a significant unmet medical need, with limited effective treatment options available.
Strategic Implications for Lundbeck
Charl van Zyl, president and CEO of Lundbeck, stated that this acquisition will be a cornerstone in Lundbeck’s neuro-rare franchise, with the potential to drive growth into the next decade. He emphasized that 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," said van Zyl.
According to Lundbeck, the acquisition of Longboard marks a strategic milestone, enhancing and complementing their Focused Innovator strategy and advancing their goal of building a neuro-rare disease franchise. The company believes that bexicaserin aligns with Lundbeck’s expertise in delivering innovative treatments and re-establishes their scientific and commercial leadership in rare epilepsies.
Longboard's Perspective
Kevin Lind, president and CEO of Longboard, expressed pride in his team's achievements in delivering groundbreaking data with a differentiated and inclusive clinical approach to address the needs of a wide range of DEEs and obtaining Breakthrough Therapy designation. He thanked the DEE community, study participants, caregivers, advocacy groups, investigators, sites, and coordinators for their support and partnership. Lind believes that Lundbeck’s capabilities will accelerate the vision to provide increased equity and access for underserved DEE patients with significant unmet medical needs.
