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Lundbeck to buy Abide
Posted on Tuesday, 07 May 2019 14:15
Denmark’s H Lundbeck is acquiring US-based clinical-stage biopharmaceutical company Abide Therapeutics for USD 250.00 million.
Under the terms of the deal, the buyer will also pay up to USD 150.00 million for future development and sales milestones being achieved.
Established in 2011, Abide has developed a platform to help discover potent and selective serine hydrolase inhibitors - enzymes which are found in pathophysiological processes such as blood clotting, digestion and cancer, among others.
Through the deal, Lundbeck gains access to the target’s leading product ABX-1431, a molecule that increases endocannabinoid signalling in the central nervous system, and undergoing clinical trials as a treatment for Tourette syndrome.
In addition, the purchaser will snap up Abide’s pipeline of inhibitors and serine hydrolases which are being developed with the aim of helping patients living with neurological and psychological disorders.
Deborah Dunsire, chief executive of Lundbeck, said: “The acquisition of Abide provides us with a differentiated chemo-proteomic platform to discover new classes of drugs for a broad spectrum of brain diseases starting with those that harness the therapeutic potential of the endocannabinoid system.”
The transaction will be funded using existing cash reserves, and is expected to complete during the second quarter of 2019, subject to regulatory approvals and the expiration of waiting periods under US antitrust laws.
Upon closing, Abide’s California-based laboratory will become a drug discovery hub for Lundbeck.
Headquartered in Copenhagen, the buyer specialises in the research, development, manufacturing, marketing and sale of pharmaceuticals targeting psychiatric and neurological conditions, such as depression and Parkinson’s disease.
It has around 5,000 employees and has production facilities in Denmark, France and Italy.
For the financial year ended 31st December 2018, Lundbeck booked revenue of DKK 18.12 billion (EUR 2.72 billion), up from DKK 17.23 billion in the preceding 12 months.
According to Zephyr, the M&A database published by Bureau van Dijk, there have been 636 deals targeting pharmaceutical and medicine manufacturers announced worldwide since the beginning of 2019.
Bristol-Myers Squibb agreeing to buy US-based Celgene for USD 74.00 billion was the largest of these.
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