Shares of biotech company Alder Biopharmaceuticals (ALDR) - Get Report surged on Monday after rival Danish drugmaker Lundbeck announced plans to acquire the company and its late-stage migraine drug eptinezumab in a deal worth up to $1.95 billion.
Under terms of the deal, Lundbeck will buy Alder for $18 a share in cash, along with a non-tradable contingent value right entitling shareholders to up to $2 a share on approval of eptinezumab by the European Medicines Agency.
"Alder is an excellent strategic fit for Lundbeck's focused expertise in brain diseases and organizational capabilities," recently appointed Lundbeck CEO Deborah Dunsire said in a statement. Dunsire in July took over the position left vacant after former CEO Kare Schultz joined Teva Pharmaceuticals (TEVA) - Get Report .
"Migraine prevention is an attractive indication for us that leverages our specialized commercial expertise in delivering medicines for brain diseases," she said, adding that she expects eptinezumab's global launch as well as additional potential product development "to accelerate Lundbeck's growth in the coming years."
18.44 USD+8.37 (83.25%)
Shares of Bothell, Wash.-based Alder jumped 83.25%, or $8.37 a share, to $18.44 in early trading on Monday. Shares of Lundbeck were up 4.69% in Europe.