M&A News: Lundbeck to Acquire Longboard (NASDAQ:LBPH) for $2.6B

Longboard Pharmaceuticals (LBPH) soared in trading on Monday after announcing that Dutch pharmaceutical company Lundbeck will acquire the company for $2.6 billion. Longboard is a clinical-stage biopharmaceutical company focused on developing medicines for neurological diseases.

Lundbeck Will Acquire LBPH Shares at a 54.2% Premium

According to the terms of the deal, Lundbeck will acquire Longboard’s shares for $60 each, offering a 54.2% premium over LBPH’s previous closing price of $38.90. The deal is expected to close in the fourth quarter. With this acquisition, Lundbeck expects to expand its portfolio of treatments for neurological conditions, which include Parkinson’s disease, migraines, and Alzheimer’s disease.

Lundbeck Will Gain Access to Longboard’s Bexicaserin

A key driver behind this acquisition is Longboard’s lead drug candidate, bexicaserin, which targets seizures associated with Developmental and Epileptic Encephalopathies (DEEs), a group of severe early-onset epilepsies. Lundbeck will have access to this drug with this deal and anticipates launching the drug by the fourth quarter of 2028. Furthermore, the company estimates that bexicaserin could generate global peak sales ranging between $1.5 billion and $2 billion.

Notably, Bexicaserin is currently in late-stage development, and the Phase-3 trial focuses specifically on treating seizures caused by Dravet syndrome, one of the most challenging forms of epilepsy.

Through this acquisition, Lundbeck will strengthen its drug pipeline to address complex neurological conditions.

Is LBPH Stock a Good Buy?

Analysts remain bullish about LBPH stock, with a Strong Buy consensus rating based on seven Buys. Over the past six months, LBPH has surged by more than 222%, and the average LBPH price target of $59.83 implies an upside potential of 1.7% from current levels.

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