H. Lundbeck A/S is a Denmark based international pharmaceutical company specialized in brain diseases. The company is engaged tirelessly in the research, development, and sales of products related to the treatments of central nervous system disorders. This veteran neuroscience company recently struck a deal of $250 million cash down payment with Abide Therapeutics.
Abide Therapeutics is an innovative biopharmaceutical company focused on developing drugs for serious diseases which are unmet medically. The company’s main focus has been the use of serine hydrolase monoacylglycerol lipase (MGLL) to address neurological diseases.
The agreed deal terms dictate $250 million up-front payment to the current investors of Abide Therapeutics followed by $150 million payment in future by achieving sales and development milestones. The Abide’s laboratory in La Jolla, California, U.S along with the production of its lead molecule ABX-1431 will become a part of the drug development lab for Lundbeck in the U.S.
Why snap up Abide Therapeutics?
Abide Therapeutics has spent recent years in the development of serine hydrolase enzymes which are involved in potent activities like blood clotting, neuro-signaling, inflammation, and cancer. This means a broad range of neurological diseases can be cured using injections of serine hydrolases – a highly unexplored class of enzymes. The ABX-1431 discovered by Abide already played a vital role as an inhibitor to serine hydrolases or MGLL and research indicated that MGLL might play a role in curing multiple psychiatric and neurological conditions.
Lundbeck Company has been in the neuroscience research for more than 70 years and highlighted the potential of Abide’s platform to generate more innovative drugs that can yield good results against various brain disorders and diseases. The company has already employed approximately 5,000 individuals across 50 countries. It has developed pipelines, product sales over 100 countries and a well-established reputation. According to Lundbeck’s research, the unique discovery platform of Abide Therapeutics can aid Lundbeck to further their research and mission statement and decided to take over the U.S based Abide Biopharmaceutical Company.
Does it affect Lundbeck?
Lundbeck has recently suffered some setbacks in its pipeline system with the failure of AF35700 in treating schizophrenia in late phases of Alzheimer’s disease patients and yearns for new prospects to beat its competitors.
Lundbeck is expected to fuel the transaction using its existing cash reserves. The transaction will also have no impact on Lundbeck’s 2019 financial guidance range. This shows that H. Lundbeck A/S has invested its cash reserves on a seemingly great prospect. Abide’s rich pipelines will allow Lundbeck to target various serine hydrolases to develop novel treatments for people living with various brain disorders. The platform can further be used to enhance the serine hydrolase family using active agents to alter their functioning.
Lundbeck now has a potential game-changing research facility which may revolutionize the treatments of brain and central nervous system disorders using active enzymes. Whether this deal will pay off Lundbeck in the future remains a question of time ahead!