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Lundbeck to acquire Chelsea

May 9, 2014 12:03 AM UTC

H. Lundbeck A/S (CSE:LUN) will acquire Chelsea Therapeutics International Ltd. (NASDAQ:CHTP) in a deal worth up to $7.94 per share, or about $626.8 million based on 78.9 million Chelsea shares outstanding as of May 2. Chelsea shareholders will receive $6.44 per share in cash, or about $508.3 million. The cash price is a 29% premium to Chelsea's close of $5 on Wednesday, before the deal was announced. Chelsea shareholders will also receive a contingent value right (CVR) worth up to $1.50, or about $118.4 million, tied to sales of the company's Northera droxidopa. FDA granted accelerated approval to Northera to treat neurogenic orthostatic hypotension (NOH) in February. Lundbeck plans to launch the orally available synthetic precursor of norepinephrine next half.

Lundbeck said Northera is a "strong commercial and strategic fit" with its existing U.S. neurology franchise. Chelsea's board unanimously approved the deal, which is expected to close next quarter. Moelis & Co. advised Lundbeck. Deutsche Bank, and Torreva Capital advised Chelsea. ...