Neuroscience drug developer Lundbeck is increasing its scope to epilepsy by way of the $2.6 billion acquisition of Longboard Prescribed drugs, an organization whose lead asset is in late-stage medical improvement for a uncommon, inherited seizure dysfunction that has few authorized therapies.
In line with deal phrases introduced Monday, Lundbeck can pay $60 in money for every Longboard share, representing a 54.2% premium to the biotech’s closing inventory worth on Friday and a 77% premium to the inventory’s common worth for the month of September. When La Jolla, California-based Longboard went public in 2021, it priced shares at $16 apiece.
Longboard’s lead drug candidate, bexicaserin, is in improvement for developmental and epileptic encephalopathies (DEEs), a gaggle of issues that embrace the uncommon epilepsies Dravet syndrome and Lennox-Gastaut syndrome. The oral small molecule is an agonist of the 5-HT2C receptor, whose roles embrace regulating seizure severity. This receptor is already focused by Fintepla, a UCB drug authorized to deal with seizures related to Dravet and Lennox-Gastaut. However Fintepla’s label carries a black field warning for cardiovascular problems. Bexicaserin is designed to selectively goal 5-HT2C with out additionally hitting different receptors that may trigger adversarial results.
Jazz Prescribed drugs’ cannabis-derived Epidiolex, authorized for Dravet, Lennox-Gastaut, and tuberous sclerosis complicated, has no black field warning. Some high-profile efforts in DEEs have encountered setbacks. In June, Takeda Pharmaceutical reported its drug candidate soticlestat failed separate placebo-controlled Part 3 exams in Dravet and Lennox-Gastaut.
Longboard had been making the case that bexicaserin can stand aside from different approaches to deal with epilepsies. In January, the biotech reported Part 1b/2a knowledge displaying a median 53.3% discount in seizure frequency in sufferers with DEEs in the course of the 75-day remedy interval, outcomes that had the corporate making claims of best-in-class potential. Shares of the biotech soared greater than 300% after that knowledge report.
Bexicaserin’s efficacy outcomes are holding up thus far. In line with a Lundbeck investor presentation, nine-month open-label knowledge present a 57.7% discount in countable motor seizures. In September, Longboard started a worldwide Part 3 take a look at enrolling Dravet sufferers age 2 and older. This medical trial is a part of a broader program deliberate to guage the drug in about 480 sufferers who’ve a spread of DEEs.
The Longboard pipeline additionally consists of LP659, a modulator of the S1P receptor that has potential purposes in neuroinflammatory issues. A Part 1 single-ascending dose examine has been accomplished however plans for a Part 1 multiple-ascending dose examine are topic to decision of a partial medical maintain. Each bexicaserin and LP659 have been licensed from Enviornment Prescribed drugs.
Lundbeck focuses on neuroscience medication. The Copenhagen-based firm’s top-selling product is Rexulti, a schizophrenia and despair drug that final yr expanded its authorized makes use of to incorporate agitation attributable to Alzheimer’s illness. The product accounted for 4.5 billion Danish krone (about $661 million) in income final yr, a 16% improve in comparison with the prior yr, in accordance with the corporate’s annual report.
Inside neuroscience, Lundbeck executives have recognized uncommon neurological illnesses as a chance for pipeline growth. Lundbeck initiatives a fourth quarter 2028 launch for bexicaserin. The corporate estimates the drug may obtain peak gross sales of $1.5 billion to $2 billion.
“This transformative transaction will develop into a cornerstone in Lundbeck’s neuro-rare franchise, with a possible to drive development into the following decade,” Lundbeck President and CEO Charl van Zyl stated in a ready assertion. “Bexicaserin addresses a vital unmet want for sufferers affected by uncommon and extreme epilepsies, for which there are only a few good remedy choices obtainable.”
The boards of administrators of each Lundbeck and Longboard have authorized the acquisition, which nonetheless wants the vast majority of Longboard’s excellent voting shares to be tendered. The deal additionally should cross regulatory muster. The transaction is anticipated to shut by the tip of this yr.
Picture: Getty Photographs, Iaremenko
