On Oct. 22, 2019, Lundbeck, located in Valby, Denmark, announced it had completed its acquisition of Bothell, Washington-based Alder BioPharmaceuticals for $1.95 billion. The transaction, which was announced on 16 September 2019, significantly accelerates and strengthens the build of Lundbeck’s pipeline.

Lundbeck acquired Alder for an upfront payment of USD 18.00 per share, in cash, along with one non-tradeable Contingent Value Right (CVR) of USD 2.00 per share, payable—subject to certain terms and conditions—upon approval of eptinezumab by the European Medicines Agency (EMA), representing a total potential consideration of USD 20.00 per share.

Alder was developing eptinezumab for the preventive treatment of migraine in adults.  The company had submitted a Biologics License Application (BLA) to the U.S. Food and Drug Administration (FDA) for eptinezumab in February 2019 and the FDA has set a Prescription Drug User Fee Act (PDUFA) action date of February 21, 2020.

Lundbeck expects to submit eptinezumab for approval to regulatory authorities in the European Union during 2020, followed by submissions for approval in other regions around the world, including China and Japan. Alder has also been developing ALD1910, a mAb designed to inhibit pituitary adenylate cyclase-activating polypeptide (PACAP) for migraine prevention. Eptinezumab, together with ALD1910, will help establish Lundbeck as an emerging leader in migraine and other pain syndromes.

The acquisition of Alder will support Lundbeck’s aim to deliver long-term sustainable growth and is consistent with capital allocation priorities. The transaction is expected to accelerate and diversify Lundbeck’s revenue growth with the expected U.S. launch of eptinezumab for preventive treatment of episodic and chronic migraine in 2020 and the expected expansion of indications for the product.