H. Lundbeck A/S launched a tender offer to buy all outstanding common shares of Alder BioPharmaceuticals Inc. at $18 per share in cash.
The offer also includes one nontradeable contingent value right that entitles them to an additional $2 per share upon the European Medicines Agency's approval of Alder's migraine prevention therapy eptinezumab. Lundbeck expects to seek EU approval for eptinezumab in 2020, after which the company will file applications globally, including in China and Japan.
The tender offer is in connection with the Denmark-based company's $1.95 billion acquisition of Bothell, Wash.-based Alder.
Lundbeck unit Violet Acquisition Corp. is purchasing the shares under the offer. Violet will be merged with and into Alder under the transaction, with the latter as the surviving corporation. Following the merger, Alder Biopharmaceuticals will be a wholly owned subsidiary of Lundbeck.
The offer, subject to certain conditions, will expire on Oct. 21 unless extended.
Meanwhile, Alder's board of directors decided to recommend the company's shareholders accept the tender offer.
Lundbeck says the acquisition will expand its capabilities to develop therapies for more brain diseases.
Along with eptinezumab, Lundbeck will also gain access to Alder's early-stage migraine preventive therapy, ALD1910.
