Lundbeck is a Danish international pharmaceutical company that develops, produces, markets, and sells medications worldwide. They have sourced an opportunity in the clinical-stage biopharmaceutical space to acquire Longboard Pharmaceuticals for $2.5bn. The deal sets to transform the brain disorder space, and the Lundbeck CEO recently stated the acquisition will “become a cornerstone in Lundbeck’s neuro-rare franchise, with a potential to drive growth into the next decade.” The deal involves a small sum of debt, which totals to $92.7m. The rest of the deal is financed by cash, where all outstanding shares will be bought for $60 per share. Both boards of directors unanimously approved the deal. PJT Partners Limited acted as a financial advisor to Lundbeck, whilst for Longboard, Evercore and Centerview Partners LLC acted.
Lundbeck is attracted to a key feature in Longboard’s processes which is called bexicaserin (bexi). It is designed to suppress the hyperexcitability that underpins seizures and is commonly known as Longboard’s lead asset. Bexi tackles the seizures associated with developmental and epileptic encephalopathies (DEE), such as Dravet syndrome and tuberculosis sclerosis complex. In terms of the industry move, there is growing interest in DEEs and rare epilepsies. Companies such as Jazz, Marinus, and Praxis are likely to benefit due to passing through the regulation that limits drug approval in this area and providing new development for DEE. Recently, Longboard started a study that will evaluate the safety and efficacy of bexicaserin in 160 patients aged two to 65 years.
Bexi is orally available and is a centrally-acting superagonist of the 5-HT2C receptor. Lundbeck believes bexi can generate $1.5-2bn in peak sales and it is expected to launch in the fourth quarter of 2028. In January, the Longboard reported Phase 1b/2a data showing a median 53.3% reduction in seizure frequency in patients with DEEs. During the 75-day treatment period, results had the company making claims of best-in-class potential. It is distinct in the fact it targets the 5-HT2C receptor subtype specifically and selectively while having no detected activity against the 5-HT2B and 5-HT2A receptors. Another product on the market named Fintepla, a UCB drug approved to treat seizures associated with Dravet and Lennox-Gastaut comes with adverse effects, namely cardiovascular issues.
The acquisition will also provide Lundbeck with an early-stage asset, complementary to bexi, which will help fight brain disease. It is called LP659, which is being assessed for multiple neurological diseases. These include the potential for it to fight Parkinson’s disease, Alzheimer’s disease, multiple sclerosis, and lupus. Additionally, it works by being a centrally acting modulator of the S1P receptor subtypes 1 and 5.
Overall, bexi proves to reach an unmet need for patients suffering from rare and severe epilepsies. There seems to be little competition in this area, as good alternatives are extremely limited and Lundbeck's neuro-rare disease portfolio will benefit dramatically.
Written by: Jansher Verscht
Sources: MergerLinks, BioSpace, MediCity News
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