Longboard (LBPH.US) surged more than 50% before the market! Pharmaceutical giant Lundbeck wants to swallow the company for $2.6 billion

The Zhitong Finance App learned that Danish pharmaceutical giant Lundbeck said it would acquire Longboard Pharmaceuticals (LBPH.US) with an equity value of 2.6 billion US dollars. Stimulated by this major news, Longboard's share price rose by more than 50% in pre-market trading of US stocks. By the close of last week's US stock market, Longboard's total market value was about 1.5 billion US dollars, and the stock price closed at 38.90 US dollars, all far below the scale of the acquisition initiated by Lundbeck.

According to information, Lundbeck will begin a tender purchase of all issued shares of Longboard's common stock, and Longboard's shareholders will receive a purchase price of up to 60 US dollars per share.

The deal has been unanimously approved by both companies' boards of directors, and it is expected that the entire acquisition plan will be completed in the fourth quarter of this year.

Through this deal, Danish pharmaceutical giant Lundbeck will successfully receive Bexicaserin, a drug being developed to treat DEE-related seizures, including Dravet syndrome, Lennox-Gastaut syndrome, and other very rare symptoms of epilepsy.

The company expects to finance the transaction through existing free cash flow resources and a sizeable bank financing facility.

Lundbeck also expects the consolidation cost to be approximately US$80 million, which will mainly affect the 2024 financial report and will be adjusted accordingly in the adjusted core profit.

Some analysts said that through this acquisition, Lundbeck hopes to strengthen its position as a leader in the field of rare neurological diseases and provide patients with more innovative treatment options. By acquiring LongBoard's core asset, BexiCaserin, it can greatly strengthen Lundbeck's R&D pipeline and future product scale in the field of rare neurological diseases.

Lundbeck, headquartered in Denmark, is a world-renowned pharmaceutical company focused on the research, development, production and sale of drugs for the treatment of brain mental disorders and rare neurological diseases such as depression, schizophrenia, Alzheimer's disease, and Parkinson's disease.