H. Lundbeck A/S, a specialty pharmaceutical company, announced that it acquired Longboard Pharmaceuticals.
Longboard shareholders will be offered a payment of $60 per share in cash. The transaction is valued at approximately $2.6 billion equity value and $2.5 billion (approximately DKK 17 billion) net of cash, on a fully diluted basis. The cash consideration represents a 77% premium to the 30-day volume-weighted average price of shares of Longboard common stock as of September 30, 2024.
Longboard is a clinical-stage biopharmaceutical company focused on developing novel, transformative medicines for neurological diseases. Longboard’s small molecule product candidates are based on more than 20 years of G protein-coupled receptors research. Bexicaserin (LP352), an oral, centrally acting 5-hydroxytryptamine 2C (5-HT2C) receptor super-agonist, with no observed impact on 5-HT2B and 5-HT2A receptor subtypes, is being evaluated in a global phase III clinical program (the DEEp Program).
H. Lundbeck researches, develops and sells pharmaceuticals for the treatment of brain disorders on the basis of in-house research in Europe, the United States and internationally. According to its full year financial report, the company reported more than $2.9 billion (DKK 20 billion) in revenue for the full year of 2024.
Lundbeck expects to fund the acquisition through existing cash resources and its existing bank financing facility. Following closing of the transaction, Lundbeck will focus on de-leveraging and leverage is expected to be in Lundbeck’s target range of <2.5x NIBD/EBITDA within 18-24 months.
For Lundbeck, PJT Partners LP is acting as exclusive financial advisor and Baker McKenzie is acting as legal advisor. For Longboard, Evercore and Centerview Partners LLC are acting as financial advisors and Cooley LLP is acting as legal advisor.
According to data captured in the LevinPro HC database, this transaction represents the 51st Pharmaceuticals acquisition of the year. It is also the largest Pharmaceuticals deal by purchase price of 2024, so far.
