In This Article:
Danish pharmaceutical company Lundbeck will buy Longboard Pharmaceuticals (LBPH) in a deal valued at $2.6 billion, with the former hoping to build off of its pipeline of epilepsy drug treatment.
Market Domination hosts Julie Hyman and Josh Lipton take a closer look at the details of the deal.
To watch more expert insights and analysis on the latest market action, check out more Market Domination here.
This post was written by Luke Carberry Mogan.
Longboard Pharmaceuticals, those shares skyrocketing. And that's after Lundbeck of a Danish company agreed to acquire it in a strategic deal. The acquisition aimed at enhancing Lundbeck's capabilities and presence within neuro-rare conditions and specifically for some rare types of epilepsy. Longboard has some drugs in its pipeline that are aimed at treating that, that Lundbeck now wants to get onto the market by the final quarter of 2028.
I saw the CEO telling press, the deal will help build a late-stage pipeline for Lundbeck. Says this has blockbuster potential and apparently open to making even more acquisitions as well. So...
Yeah. They're talking about one and a half to $2 billion when it reaches peak sales. What I find fascinating about Longboard as a quick aside here, the company went public in 2021 at $16 a share. And when we talk about trending tickers, we frequently see small, relatively small biotech companies on there. This is like the dream scenario if you are a speculative biotech investor. Now, it's had a lot of ups and downs, but the stock went public in 2021 as I mentioned at $16 a share. It's now trading close to 60 ahead of being acquired here. $60 a share is where it's being taken out.
Mhm.
You know, and obviously some of these stocks do not turn out well. They don't get acquired. Their drugs don't work. But this is an example.
You're in this space. I mean how, just one headline sends you shooting higher or nosediving. Something. Good for those shareholders.
Yes. Yep.