Lundbeck and LifeHealth have entered into a definitive agreement under which Lundbeck acquires all shares of LifeHealth, the holder of Xenazine rights.
The deal is an all-cash transaction valuing LifeHealth at $147 million or approximately DKK 780 million. The Supervisory Board at Lundbeck and the Board of Directors of LifeHealth have unanimously approved the transaction.
The company said that by acquiring LifeHealth, it will substantially increases its economic share of the tetrabenazine asset and retains certain rights to all future indications, including the controlled-release formulation currently in development.
Under the terms of the agreement, Lundbeck will make an upfront payment of $147million immediately upon closing of the transaction.
Ulf Wiinberg, President and CEO at Lundbeck, said: Xenazine is the only FDA-approved product for patients suffering from chorea associated with Huntington’s disease and we are very encouraged by what our US subsidiary, Lundbeck has achieved since they launched Xenazine in the US at the end of last year. This new transaction strengthens Lundbeck’s US platform and materially improves the earnings outlook in the US.