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Lundbeck’s Acquisition of Longboard Could Revolutionize Neuro-Rare Treatment

15th October 2024

Danish pharmaceutical company Lundbeck is making waves in the biopharma industry with its $2.6 billion acquisition of the biotechnology firm Longboard Pharmaceuticals. This strategic move targets the development of bexicaserin, an experimental treatment for DEEs, a group of rare brain disorders. With over 110,000 people in the U.S. lacking approved therapies for DEEs, Lundbeck’s investment could significantly impact the treatment landscape for these conditions.

As Lundbeck sets its sights on strengthening its neuro-rare franchise, the acquisition of Longboard comes at a crucial time. The company anticipates the drug to hit the market by late 2028, coinciding with the expiration of the patent for their top-selling antipsychotic, Rexulti. This acquisition fills a strategic gap, potentially maintaining Lundbeck’s growth trajectory into the next decade. The drug’s promise lies in its ability to enhance GABA production, a neurotransmitter that helps calm hyperactive brain states associated with epilepsies. With patent protection extending until 2041 and successful mid-stage trial results, bexicaserin offers a compelling opportunity amid a lull in major biopharma mergers and acquisitions.

Lundbeck’s acquisition of Longboard is poised to be a transformative step for both the company and the broader neuro-rare treatment market. As industry analysts keep a close watch, the successful development and launch of bexicaserin could not only solve unmet needs in DEEs treatment but also set a precedent in biopharma dealmaking during an otherwise subdued period.

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