(Photo : www.lundbeck.com)

Danish pharmaceutical company Lundbeck said on Monday it is all set to buy US based Longboard Pharmaceuticals. With this strategic dealof $2.6 billion, the Danish drug maker will acquire access to bexicaserin, a promising epilepsy treatment developed by Longboard.

While revealing that it expects an integration cost of about $80 million, Lundbeck saidit will fund the acquisition through existing cash resources and bank financing facilities.The business deal will be completed in the fourth quarter of 2024.

The acquisition of bexicaserin, the revolutionary treatment for a group of rare and severe epilepsies, will improve Lundbeck's neuroscience pipeline and thus strengthen its presence in the field of neuro-rare conditions.

"This transformative transaction will become a cornerstone in Lundbeck's neuro-rare franchise, with a potential to drive 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," Charl van Zyl, President and CEO of Lundbeck, said in a statement.

"With this acquisition, we continue to execute on our Focused Innovator strategy, transforming the lives of patients suffering from severe brain disorders," he added.

As part of the acquisition, Lundbeck will start a tender for all outstanding shares of Longboard common stock and will pay shareholders $60 per share in cash. The companies will merge once the tender offer is completed.

Stating the latest move as a 'strategic milestone,' Lundbeck said it is planning to launch the drug in the fourth quarter of 2028 and expected a global peak sales potential of between $ 1.5 and 2 billion.

Established in Aug 1915 by Hans Lundbeck, the Danish drug maker has over 5,500 employees in 50 countries and markets products to over 80 countries. Epilepsy affects 65 million people across the world and around 220,000 patients are affected by DEE syndromes in the U.S. alone. 

According to 2020 data, around 10-12 million Indians are affected with epilepsy. Lamotrax-25 DT, Levitam - 500, Aux-Tol Tablet, Brivadix Tablet and Epidix Injection are some of the best treatments currently available in India for seizure attacks, according to experts at Somacare. 

Developmental and Epileptic Encephalopathy (DEE) are severe epilepsies with seizures and involve developmental delays. The condition which is mostly drug-resistant includes 25 types of symptom, but treatment for only four has been approved by FDA. Some common epilepsy syndrome are Dravet syndrome, Lennox-Gastaut syndrome and Tuberous sclerosis complex.

The drug candidate bexicaserin, which works by targeting 5-HT2C receptors has been found effective in treating seizures andto re-confirm the effectiveness of bexicaserin, the company launched a phase III trial named DEEp SEA recently in September 2024.

Having the Rare Pediatric Diseaseand Orphan Drug designations, bexicaserin has received Breakthrough Therapy designation from FDA for DEE seizures for kids aged two and older.

Longboard, launched in Oct 2020 by Arena Pharmaceuticals with $56 million to develop novel and transformative medicines for neurological diseases, was acquired by Pfizer for $6.7 billion in Dec 2021. Longboard went public by raising $80 million in March 2021.

"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 BreakthroughTherapy designation," said Kevin R. Lind, President and Chief Executive Officer of Longboard.

"Lundbeck's remarkable capabilities will accelerate our vision to provide increased equity and access for underserved DEE patients with significant unmet medical needs."