Lundbeck has completed the acquisition of all outstanding shares of Longboard Pharmaceuticals, to bolster its capabilities in the neuro-rare disease sector.
The transaction, worth approximately $2.6bn in equity value and $2.5bn net of cash, was finalised following the closure of a tender offer for all outstanding Longboard shares at $60 each.
Longboard is now Lundbeck’s wholly owned subsidiary, following the closure of the acquisition process initially announced in October 2024.
The tender offer for Longboard's outstanding common stock expired shortly after midnight on 27 November 2024 with 88.6% of Longboard's shares validly tendered.
In line with the tender offer terms, Lundbeck has accepted all the validly tendered shares for payment and intends to settle the transactions promptly.
The acquisition was executed through a merger with Lundbeck's subsidiary, Langkawi Corporation, under Delaware's General Corporation Law Section 251(h), eliminating the need for a Longboard stockholder vote.
Each Longboard share not tendered has been converted into a right to receive the same $60.00 per share in cash, mirroring the tender offer's terms. The acquisition's funding comes from Lundbeck's existing cash reserves and bank financing facilities.
The acquisition provides Lundbeck access to bexicaserin, a 5-HT2C agonist in development for treating seizures associated with developmental and epileptic encephalopathies (DEEs), including Dravet syndrome and Lennox-Gastaut syndrome.
The global Phase III trial of bexicaserin is evaluating its efficacy for Dravet syndrome in participants aged two years and older.
This trial is part of the larger DEEp programme, which will span 80 sites worldwide and include around 480 participants.
Lundbeck president and CEO Charl van Zyl stated: “In just a few years, the Longboard team has achieved remarkable results, and with the transaction now complete we are adding a highly innovative project in an area of significant unmet medical need to our portfolio.
“The acquisition of Longboard advances our Focused Innovator strategy to transform the lives of patients suffering from severe brain disorders and drive sustainable long-term growth.”
