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Lundbeck to buy Alder
Posted on Monday, 16 September 2019 13:30
H. Lundbeck is acquiring US-based clinical-stage biopharmaceutical company Alder BioPharmaceuticals in a deal worth up to USD 1.95 billion in cash.
Under the terms of the transaction, the buyer is offering an upfront payment of USD 18.00 per share, as well as one non-tradeable contingent value right entitling them to USD 2.00 per share.
The purchase price represents a 98.8 per cent premium to the target’s close of USD 10.06 on 13th September, the last trading day prior to the deal being announced.
Alder’s board has approved the transaction, which remains subject to customary conditions and regulatory clearances.
The target will also file a recommendation to its shareholders, suggesting that they tender their stock to Lundbeck.
Alder plans to fund the deal, which is expected to complete in the fourth quarter of 2019, using existing cash resources and bank financing.
Headquartered in Washington, the Nasdaq-listed target focuses on developing novel therapeutic antibodies used to treat migraines.
The group’s pipeline includes eptinezumab, an investigational monoclonal antibody which is administered as a quarterly 30-minute intravenous therapy and helps to suppress headaches.
As of 30th June 2019, the company had total assets worth USD 462.57 million.
Through the acquisition, Alder will establish itself as a leader in the treatment of migraines and other pain syndromes.
Deborah Dunsire, chief executive of Lundbeck, said: “Alder is an excellent strategic fit for Lundbeck’s focused expertise in brain diseases and organisational capabilities.”
As a result of the transaction, the buyer will expand its offering, which already includes products and drugs used for neurological conditions such as Alzheimer’s disease and schizophrenia.
The deal will also speed up the group’s revenue growth through the expected US launch of eptinezumab for preventive treatment of episodic and chronic migraines in 2020.
Furthermore, Lundbeck plans to submit the drug to regulatory authorities in the European Union next year, as well as those in other regions, such as China and Japan.
Assuming approval from the US Food and Drug Administration in the first quarter of 2020, and regulatory bodies, the purchase is expected to increase the buyer’s core earnings per share in 2023.
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