Danish drugmaker Lundbeck to buy Prexton Therapeutics in a deal worth $1.1 bn

Danish drugmaker Lundbeck A/S yesterday struck a deal to buy Prexton Therapeutics, a specialist in treatments for brain disorders, in a deal potentially worth $1.1 billion.

Under the terms of the acquisition, Lundbeck will make an upfront payment of €100 million and later pay up to €805 million in development, regulatory and sales milestones. More than half of the €805 million is connected to sales milestones.

By acquiring Prexton, Lundbeck will obtain global rights of an attractive compound, which currently is in clinical phase II testing for symptomatic treatment of OFF-time reduction in Parkinson's disease and dyskinesia including Levodopa Induced Dyskinesia (LID).

First data from the ongoing clinical phase II programme is expected to be available during the first half of 2019.

"By acquiring Prexton, Lundbeck will obtain global rights to foliglurax, an exciting first-in-class compound, and gain full control of the asset," said Anders Götzsche, interim CEO and CFO at Lundbeck.

"Foliglurax addresses high unmet needs with its potential indication in Parkinson's fitting perfectly within Lundbeck's core areas and this treatment option also appears to be highly interesting for patients, physicians and payors," he added.

Foliglurax works by stimulating a specific glutamatergic target, which activates a compensatory neuronal system in the brain which is largely unaffected in Parkinson's disease. Animal models have convincingly demonstrated positive effects in models of Parkinson's disease.

The drug will treat the motor symptoms of Parkinson's disease, such as resting tremor, muscle rigidity and uncontrolled movements (dyskinesia).

Founded in 2012 by Francois Conquet and M Ventures, the private equity unit of Merck KGaA, Prexton is a biopharmaceutical company that applies a new scientific approach that fully integrates molecular, behavioral and chemistry technologies to address Parkinson's disease and other brain disorders.

Other major investors of the Netherlands and Switzerland-based company include Forbion, Seroba Life Sciences, Sunstone Capital and Ysios Capital.

Lundbeck is a global pharmaceutical company specialising in psychiatric and neurological disorders. Its key areas of focus are Alzheimer's disease, depression, Parkinson's disease and schizophrenia.

It has production facilities in Denmark, France and Italy, and its products are sold in more than 100 countries.

Lundbeck employs around 5,000 people in 55 countries and has annual sales of $2.6 billion.