H. Lundbeck A/S entered into a definitive agreement under which Lundbeck will commence a tender offer to acquire Chelsea Therapeutics International, Ltd.
Under the agreement, Lundbeck will gain rights to the FDA-approved product droxidopa with expected launch during 2014. Lundbeck is offering USD 658 million. The total potential consideration represents an attractive premium of 59% over the closing price of Chelsea shares on 7 May 2014. The transaction is expected to be financed by Lundbeck’s existing cash reserves.
Lundbeck states that the transaction will allow the company to leverage its expertise in rare neurologic disorders in the U.S. through the upcoming launch of the firm’s product NORTHERA, which was approved by the FDA on 18 February 2014 for the treatment of symptomatic neurogenic orthostatic hypotension (NOH).
“I believe this offer represents an attractive offer to the stockholders of Chelsea and is consistent with Lundbeck’s strategic and disciplined approach to acquisitions. The proposed strategic acquisition of Chelsea — and the launch of its lead therapy, NORTHERA — aligns with Lundbeck’s core strengths in addressing rare and challenging neurological disorders. As a company committed to people living with brain disorders, we are uniquely positioned to make NORTHERA available to those who need it most,” said Ulf Wiinberg, President & Chief Executive Officer of Lundbeck in a press release.