Lundbeck in deal to acquire Chelsea Therapeutics

8 May 2014

Danish CNS specialist Lundbeck (LUND: CO) revealed today that it has entered into a definitive agreement to acquire US firm Chelsea Therapeutics (Nasdaq: CHTP), and its recently US approved drug Northera (droxidopa), for around $658 million.

Under the terms of the deal, Lundbeck will commence a tender offer for all outstanding shares of Chelsea at $7.94 a share, or $658 million (about 3.5 billion Danish kroner) on a fully diluted basis. The total potential consideration represents an attractive premium of 59% over the closing price of Chelsea shares on May 27,014, and news of the deal pushed Chelsea’s share up nearly 33% in pre-market trading.

Consideration includes $6.44 per share in cash, or approximately $530 million on a fully diluted basis, as well as contingent value rights (CVRs) that may pay up to a total of an additional $1.50 on achievement of certain commercial milestones related to Northera’s commercial performance in the period 2015-2017.

This article is accessible to registered users, to continue reading please register for free. A free trial will give you access to exclusive features, interviews, round-ups and commentary from the sharpest minds in the pharmaceutical and biotechnology space for a week. If you are already a registered user please login. If your trial has come to an end, you can subscribe here.

Try before you buy

Free

7 day trial access

Take a Free Trial

All the news that moves the needle in pharma and biotech
Exclusive features, podcasts, interviews, data analyses and commentary from our global network of life sciences reporters.
Receive The Pharma Letter daily news bulletin, free forever.

Become a subscriber

£820

Or £77 per month

Subscribe Now

Unfettered access to industry-leading news, commentary and analysis in pharma and biotech.
Updates from clinical trials, conferences, M&A, licensing, financing, regulation, patents & legal, executive appointments, commercial strategy and financial results.
Daily roundup of key events in pharma and biotech.
Monthly in-depth briefings on Boardroom appointments and M&A news.
Choose from a cost-effective annual package or a flexible monthly subscription

The Pharma Letter is an extremely useful and valuable Life Sciences service that brings together a daily update on performance people and products. It’s part of the key information for keeping me informed

Chairman, Sanofi Aventis UK