Longboard Pharmaceuticals LBPH announced that it is set to be acquired by Lundbeck A/S for $60 per share in cash, which brings the total deal value to $2.6 billion equity value and $2.5 billion (approximately DKK 17 billion) net of cash, on a fully diluted basis. Shares of LBPH surged 51.7% in response to the news.
The cash consideration represents a 77% premium over the 30-day volume-weighted average price of Longboard's common stock as of Sept. 30, 2024. The transaction has been unanimously approved by the board of directors of both companies and is set to close in the fourth quarter of 2024, subject to the fulfillment of certain customary and regulatory conditions. Lundbeck expects to finance the transaction through existing cash resources and bank financing.
Longboard is a clinical-stage biopharmaceutical company dedicated to developing innovative treatments for neurological disorders. Its lead candidate, bexicaserin, is currently undergoing phase III development and has shown promise in reducing seizures. This next-generation superagonist targets 5-HT2C receptors, which may enable bexicaserin to offer a unique and potentially best-in-class treatment profile.
Buyout of LBPH to Enhance Lundbeck’s Neuroscience Pipeline
Lundbeck's acquisition of Longboard is a strategic move to build a neuro-rare disease franchise.
Through this acquisition, Lundbeck will gain access to bexicaserin in development for treating seizures in rare epilepsies, such as Dravet syndrome (DS) and Lennox-Gastaut syndrome (LGS). Year to date, shares of LBPH have skyrocketed 878.3% against the industry’s 2% decline, primarily due to positive updates from its bexicaserin development program.
Image Source: Zacks Investment Research
Earlier this year, Longboard announced encouraging data from the phase Ib/IIa PACIFIC study, which evaluated bexicaserin for seizures associated with a broad range of Developmental and Epileptic Encephalopathies (DEEs). DS and LGS are some of the many types of epilepsies that fall into the DEE group.
In September 2024, Longboard initiated the phase III DEEp SEA study, which is evaluating bexicaserin for the treatment of seizures associated with DS in patients aged two years and older. Please note that the DEEp SEA Study is part of a broader DEEp Program (DEEp SEA, DEEp OCEAN and DEEp OLE), which will include around 480 DEE patients across 80 sites. Per Longboard, DEE syndromes affect approximately 220,000 patients in the United States.
With Breakthrough Therapy, Orphan Drug and Rare Pediatric Disease designations from the FDA, coupled with promising open-label data, bexicaserin is poised to become a key asset in Lundbeck’s neuro-rare disease portfolio. The drug is expected to be launched for commercial use in the fourth quarter of 2028. Lundbeck estimates the global peak sales potential of bexicaserin to be between $1.5 billion and $2 billion.
The acquisition will also add another investigational candidate, LP659, to Lundbeck’s neurology portfolio. Longboard’s LP659 is currently in early-stage development as a potential treatment for rare neuroinflammatory conditions.
Other Players Operating in the Epilepsy Market
It is important to note that there are other players in the market developing novel therapies for various epilepsy indications, an example being Xenon Pharmaceuticals XENE. Xenon is currently developing its lead candidate, azetukalner (XEN1101), in late-stage studies for treating focal onset seizures (FOS). Under XENE’s phase III epilepsy program, two identical phase III studies, X-TOLE2 and X-TOLE3, are currently evaluating azetukalner (15 mg or 25 mg) as an adjunctive treatment in patients with FOS.
Xenon expects to complete patient enrollment in the X-TOLE2 study in late 2024 to early 2025. XENE plans to submit a regulatory application seeking approval of azetukalner for FOS, contingent upon the success of the X-TOLE2 study.
Xenon is also currently evaluating 25 mg azetukalner for an additional epilepsy indication, primary generalized tonic-clonic seizures (PGTCS). A phase III X-ACKT study of azetukalner in PGTCS is ongoing to support potential regulatory submissions in this additional epilepsy indication.
Longboard Pharmaceuticals, Inc. Price and Consensus
Longboard Pharmaceuticals, Inc. price-consensus-chart | Longboard Pharmaceuticals, Inc. Quote
LBPH’s Zacks Rank & Stocks to Consider
Longboard currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the biotech sector are ANI Pharmaceuticals ANIP and Alnylam Pharmaceuticals ALNY, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 60 days, estimates for ANI Pharmaceuticals’ 2024 earnings per share (EPS) have moved up from $4.69 to $4.81. EPS estimates for 2025 have improved from $5.37 to $5.86, during the same period. Year to date, shares of ANIP have gained 6.1%.
ANI Pharmaceuticals’ earnings beat estimates in each of the trailing four quarters, with the average surprise being 31.32%.
In the past 60 days, estimates for Alnylam’s 2024 loss per share have narrowed from $1.20 to 63 cents. Loss per shares estimates for 2025 have narrowed from 34 cents to 26 cents, during the same period. Year to date, shares of ALNY have risen 48%.
Alnylam’s earnings beat estimates in each of the trailing four quarters, with the average surprise being 108.53%.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How To Profit From Trillions On Spending For Infrastructure >>Alnylam Pharmaceuticals, Inc. (ALNY) : Free Stock Analysis Report
ANI Pharmaceuticals, Inc. (ANIP) : Free Stock Analysis Report
Xenon Pharmaceuticals Inc. (XENE) : Free Stock Analysis Report
Longboard Pharmaceuticals, Inc. (LBPH) : Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
%20Expands%20Its%20Portfolio%20With%20Latest%20G309%20Mouse%20%7C%20Nasdaq&_biz_n=2&rnd=121238&cdn_o=a&_biz_z=1743657831844)
