NEW YORK (The Deal) -- Central nervous system disorder specialist Chelsea Therapeutics International (CHTP) on Thursday, May 8, said it had signed up to a bid from Denmark's H. Lundbeck that values its stock at up to $658 million.
Chelsea, of Charlotte, N.C., said Lundbeck will offer $6.44 per share and so-called contingent value rights that could pay out another $1.50 if its Northera treatment meets targets after it is launched later this year. The two elements represent a per-share premium of 59% over Chelsea's Wednesday closing price, it noted.
Northera received FDA approval in February for the treatment of symptomatic neurogenic orthostatic hypotension, which causes dizziness as blood pressure falls. The deal ends months of speculation that Chelsea would choose a partner to commercialize the drug, though the Nasdaq-listed company has always insisted it could go it alone.
Chelsea in March reported a 2013 net loss of $16.4 million, down from a loss of $31.7 million the year earlier as R&D costs fell.
"This transaction provides attractive and certain upfront value to our stockholders, and enables them to participate in the potential commercial upside of Northera," said Chelsea Therapeutics President and CEO Joseph G. Oliveto in a statement. "Lundbeck's expertise in commercializing rare disorder CNS products will enable a rapid and successful launch of Northera into the U.S. market and ultimately will provide added benefit to patients suffering from NOH."
Oliveto's counterpart at Lundbeck, Ulf Winberg, said the acquisition reflects the company's "strategic and disciplined approach to acquisitions," and noted that Lundbeck will finance it out of existing resources.