Lundbeck To Acquire Longboard Pharmaceuticals For $2.6 Billion, Expanding Neurology Drug Development Pipeline

Longboard Pharmaceuticals, Inc. have announced an agreement for Lundbeck to acquire Longboard. According to the terms, Lundbeck will initiate a tender offer for all outstanding shares of Longboard common stock, offering shareholders $60.00 per share in cash. The deal is valued at approximately $2.6 billion in equity and $2.5 billion net of cash on a fully diluted basis. The boards of directors for both companies have mutually approved the acquisition, which is expected to close in the fourth quarter of 2024, pending the tender of at least a majority of Longboard's outstanding voting shares, necessary regulatory approvals, and other customary conditions.

Longboard is a clinical-stage biopharmaceutical firm that develops novel, innovative medicines for neurological diseases. Its leading asset, bexicaserin, has resulted in promising anticonvulsant effects in preclinical and clinical studies, utilizing a next-generation superagonist mechanism that explicitly targets 5-HT2C receptors. Bexicaserin is currently being tested in a global Phase III clinical program called the DEEp Program.

Charl van Zyl, President and CEO of Lundbeck, said in a statement, “This transformative transaction will become a cornerstone in Lundbeck’s neuro-rare franchise, potentially driving 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 our Focused Innovator strategy, transforming the lives of patients suffering from severe brain disorders,” 

Kevin R. Lind, President and Chief Executive Officer of Longboard, stated, “Longboard was founded to transform the lives of people living with devastating neurological conditions. I am incredibly proud of what our team has achieved: 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 further continued, “I would like to thank the entire DEE community, in particular bexicaserin’s study participants and their caregivers as well as the advocacy groups, investigators, sites and coordinators for their support and partnership. Lundbeck’s remarkable capabilities will accelerate our vision to provide increased equity and access for underserved DEE patients with significant unmet medical needs.”