Lundbeck to acquire Prexton Therapeutics in $1.1bn deal to expand Parkinson’s Disease treatment portfolio

Lundbeck, a leading Danish pharmaceutical company, has announced its acquisition of Prexton Therapeutics, a Swiss firm specializing in the development of drugs for Parkinson’s disease, in a deal valued at approximately $1.1 billion. This strategic acquisition is set to enhance Lundbeck’s capabilities in neurology, particularly in the treatment of Parkinson’s disease.

Financial Structure of the Acquisition

Under the terms of the agreement, Lundbeck will pay $123 million upfront and up to an additional $990 million based on the achievement of certain development and sales milestones. This staged payment structure is aligned with the progress and success of Prexton’s key investigational compound, foliglurax.

Strategic Implications for Lundbeck

The acquisition grants Lundbeck global rights to foliglurax, which is currently in a phase II clinical trial. This investigational compound is being evaluated for its efficacy in reducing OFF-time and dyskinesia in Parkinson’s disease patients, including those experiencing Levodopa Induced Dyskinesia (LID). Foliglurax works by stimulating a specific glutamatergic target (mGluR4), which activates a compensatory neuronal system in the brain largely unaffected by Parkinson’s disease.

Enhancing Lundbeck’s Neurological Portfolio

This acquisition is particularly significant for Lundbeck as it enhances its portfolio in a therapeutic area that aligns with its core focus. “By acquiring Prexton, Lundbeck will obtain global rights to foliglurax, an exciting first-in-class compound, and gain full control of the asset,” stated Anders Götzsche, interim CEO and CFO of Lundbeck. He further noted that “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.”

Broader Impact on Parkinson’s Disease Treatment

The acquisition of Prexton Therapeutics by Lundbeck is expected to accelerate the development of new treatments for Parkinson’s disease, addressing a significant unmet medical need and potentially improving the quality of life for patients affected by this challenging neurological disorder.

Ongoing Commitments and Future Outlook

Earlier this year, Lundbeck also entered into a research partnership with Vanderbilt University in the United States to develop new and better treatments for schizophrenia, underscoring its commitment to advancing neuroscience research. The acquisition of Prexton Therapeutics is another step towards enhancing Lundbeck’s research and development capabilities in the field of neurology.