11:04 AM EDT, 10/14/2024 (MT Newswires) -- Longboard Pharmaceuticals' ( LBPH ) deal to be acquired by Danish pharmaceutical company H. Lundbeck came earlier than expected and undervalues the franchise, Truist Securities said Monday.

On Monday, Longboard agreed to be acquired by H. Lundbeck in a deal with an equity value of roughly $2.6 billion.

"The deal came earlier than we had expected given bexi's global Ph3 has just commenced," Truist said in a note to clients. "The deal undervalues [Longboard's] lead drug bexicaserin, as Lundbeck believes bexi can generate $1.5-2BN in peak sales."

In July, Longboard secured breakthrough therapy designation from the US Food and Drug Administration for its investigational drug bexicaserin to treat seizures associated with developmental and epileptic encephalopathies for patients two years and older.

The deal, expected to close in Q4, underscores the industry's increasing interest in developmental and epileptic encephalopathies and rare epilepsies in general, according to the note.

Longboard shares were up more than 51% in recent trading.

Price: 58.80, Change: +19.90, Percent Change: +51.14