Lundbeck acquires Chelsea Therapeutics for $658 million and with it Northera for Neurogenic Orthostatic Hypotension

H. Lundbeck A/S and Chelsea Therapeutics International, Ltd. have announced that the companies have entered into a definitive agreement under which Lundbeck will acquire Chelsea. Under the terms of the agreement, Lundbeck will commence a tender offer for all outstanding shares of Chelsea, whereby Chelsea stockholders will be offered an upfront payment and contingent value rights (CVRs), representing a total potential consideration of up to USD 7.94 per share, or $ 658 million (approximately DKK 3.5 billion) on a fully diluted basis. The total potential consideration represents an attractive premium of 59% over the closing price of Chelsea shares on 7 May 2014. The transaction will allow Lundbeck to leverage its expertise in rare neurologic disorders in the U.S. through the upcoming launch of Northera, which was approved by the FDA on 18 February 2014 for the treatment of Symptomatic Neurogenic Orthostatic Hypotension (NOH). Northera is the first and only therapy approved by the FDA that demonstrates symptomatic benefit in adult patients with NOH caused by primary autonomic failure (Parkinson's disease, multiple system atrophy and pure autonomic failure), dopamine beta hydroxylase deficiency and non-diabetic autonomic neuropathy. Northera is expected to be launched in the second half of 2014.