VALBY, Denmark and CHARLOTTE, N.C. — Lundbeck and Chelsea Therapeutics International last week announced an agreement under which Lundbeck will acquire Chelsea.
The transaction will allow Lundbeck to leverage its experience in rare neurologic disorders in the United States through the upcoming launch of Northera, which received approval from the Food and Drug Administration on Feb. 18. The drug is used for the treatment of symptomatic neurogenic orthostatic hypotension and is expected to launch in the second half of 2014. Northera will join Lundbeck's existing line of neurology medications, which includes Onfi, Sabril and Xenazine.
"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," said Ulf Wiinberg, president and CEO Lundbeck. "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."
Chelsea stockholders are entitled to $6.44 per share in cash and CVRs that may pay up to $1.50, for a total potential consideration of up to $ 7.94 per share, or $658 million on a fully diluted basis, the companies stated. The offer also provides Chelsea stockholders to participate in the potential commercial success of Northera.
Chelsea's board of directors unanimously approved the transaction, which is expected to close in the third quarter of 2014.