LONDON — The Danish pharma company Lundbeck said Monday it would buy Longboard Pharmaceuticals, which is developing treatments for neurological diseases, in a deal worth $2.6 billion.
As part of the deal, which is expected to close in the fourth quarter, Lundbeck is paying $60 per share in cash for Longboard, a 54% premium on Friday’s closing price of $38.90. One year ago, Longboard’s stock was trading around $5, but has shot up as the La Jolla, Calif.-based biotech’s experimental medicines have shown promise.
Longboard’s lead drug, bexicaserin, is in Phase 3 trials and is designed to reduce seizure activity in certain types of epilepsy. Lundbeck, which specializes in psychiatric and neurological disorders, framed the acquisition as an extension of its strategy to treat brain-related diseases.
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