09:20 AM EDT, 10/14/2024 (MT Newswires) -- Longboard Pharmaceuticals ( LBPH ) on Monday agreed to be acquired by Danish pharmaceutical company H. Lundbeck in a deal with an equity value of about $2.6 billion.

Lundbeck will launch a tender offer to purchase all of Longboard's shares for $60 apiece in cash, representing a 77% premium to the biopharmaceutical firm's 30-day volume weighted average share price as of Sept. 30. Longboard's stock surged 52% in premarket activity.

On a fully diluted basis, the transaction is valued at about $2.5 billion net of cash, the companies said in a joint statement.

The deal, which requires approval from regulators as well as the tender of at least a majority of Longboard's shares, is expected to be completed in the fourth quarter. Lundbeck plans to purchase any shares that haven't been tendered in the offer through a merger for the same per-share consideration.

"Lundbeck's remarkable capabilities will accelerate our vision to provide increased equity and access for underserved (developmental and epileptic encephalopathy) patients with significant unmet medical needs," Longboard Chief Executive Kevin Lind said in a statement.

The acquisition will give Lundbeck access to Longboard's lead therapeutic candidate, bexicaserin, for seizures associated with developmental and epileptic encephalopathies. Lundbeck expects the deal to boost its rare neurological diseases portfolio and diversify revenue growth.

Bexicaserin is currently being evaluated in a global phase 3 clinical program and Lundbeck estimates the product's global peak sales potential between $1.5 billion and $2 billion.

"This transformative transaction will become a cornerstone in Lundbeck's neuro-rare franchise, with a potential to drive growth into the next decade," according to Lundbeck CEO Charl van Zyl. "With this acquisition, we continue to execute on our focused innovator strategy."

Lundbeck plans to finance the transaction through existing cash and its bank financing facility. The firm expects to record integration costs of roughly $80 million.

In August, Longboard reported a second-quarter loss of $0.56 a share versus a $0.65 loss the year before. The company ended the June quarter with $304.9 million in cash, cash equivalents and investments.

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