Lundbeck to acquire LifeHealth shares

Lundbeck has announced an agreement with LifeHealth, which will see the former acquire all shares of the latter.

The deal, which has been unanimously approved by the supervisory board at Lundbeck and LifeHealth’s board of directors, is an all-cash transaction that values LifeHealth at a total of $147 million (91.2 million pounds).

Lundbeck explains that the acquisition is “a logical next step” for the company as the firm will be able to “substantially” increase its economic share of tetrabenazine assets.

Moreover, the purchase will offer Lundbeck the opportunity to expand its operations in the Xenazine market, as LifeHealth holds the rights to marketing and selling the product, which is a therapy for chorea associated with Huntington’s disease, in certain regions.

Nothing that the acquisition price of LifeHealth will be recorded as “product rights” under intangible assets on its balance sheet, Lundbeck said: “Xenazine is expected to provide significant revenue contribution to Lundbeck.”

In recent days, the company announced the acquisition of biotech company NeuronIcon.