Lundbeck acquisition of Alder BioPharmaceuticals : Danish pharma company H. Lundbeck has entered into a definitive agreement to acquire Alder BioPharmaceuticals, a US clinical-stage pharma development company, in a transaction valued at up to $1.95 billion in cash.
Alder BioPharmaceuticals is engaged in discovering, development and commercialization of novel therapeutic antibodies for the preventive treatment of migraine.
The acquisition will add Lundbeck acquisition of Alder BioPharmaceuticals’ intravenous (IV) migraine therapy, eptinezumab to Lundbeck’s portfolio of brain disease therapies and will further enhance its capabilities to deliver future biological innovations in brain diseases.
Eptinezumab, an investigational monoclonal antibody (mAb), is administered as a quarterly 30-minute IV infusion for suppression of calcitonin gene-related peptide (CGRP), a neuropeptide believed to play a key role in mediating and initiating migraines.
With a Prescription Drug User Fee Act (PDUFA) action date of 21 February 2020, eptinezumab is expected to become the first IV CGRP therapy for migraine prevention in the US if approved by the Food and Drug Administration.
Alder BioPharmaceuticals is also developing ALD1910, a monoclonal antibody designed to inhibit pituitary adenylate cyclase-activating polypeptide (PACAP) for migraine prevention.
Commenting on Lundbeck acquisition of Alder BioPharmaceuticals, Dr Deborah Dunsire – president and CEO of Lundbeck said: “This transaction flows from our strategic intent to Expand and Invest to Grow. Migraine prevention is an attractive indication for us that leverages our specialized commercial expertise in delivering medicines for brain diseases.
“We expect the global launch of eptinezumab for the preventive treatment of migraine, as well as the further potential development of the product in additional indications, to accelerate Lundbeck’s growth in the coming years.”
Lundbeck anticipates to submit eptinezumab for regulatory approval in the European Union next year, followed by submissions for approval in other regions around the world.
As per the terms of the deal, the Danish pharma company will begin a tender offer for all outstanding shares of Alder BioPharmaceuticals, whereby the latter’s stockholders will receive an upfront payment for $18.00 per share in cash plus one non-tradeable contingent value right (CVR) of $2.00 per share.
Bob Azelby – Alder BioPharmaceuticals president and CEO, commenting on Lundbeck acquisition of Alder BioPharmaceuticals, said: “As a global leader in neuroscience research with products registered in more than 100 countries and a strong network of neurology specialists, Lundbeck is the ideal partner to advance Alder’s mission of changing the treatment paradigm for migraine prevention. We believe this positions eptinezumab for a successful launch both in and outside of the United States.
“Importantly, today’s news provides Alder shareholders with significant and immediate cash value, as well as the ability to benefit further once eptinezumab is approved by the EMA. Looking ahead, we expect Lundbeck will leverage Alder’s expertise in antibody development to explore additional indications for eptinezumab and continue the development of ALD1910.”
Lundbeck acquisition of Alder BioPharmaceuticals, which is subject to customary closing conditions, is expected to close in the fourth quarter of 2019, as per the latest pharma acquisition news.