Lundbeck Pays Up For A New Clinical Trial Asset

I have maintained for some time that one of the biggest issues for H. Lundbeck (OTCPK:HLUYY) (LUN.CO) is the feeble state of its pipeline. While Lu AF35700 is an interesting and promising asset in late-stage testing for treatment-resistant schizophrenia and Lu AF20513 is an intriguing but totally unproven asset in Phase I for Alzheimer’s, there’s not much else in the pipeline apart from some expanded indications for existing drugs. 

With Lundbeck having recently indicated that the board was more receptive to M&A, the company put its money behind that, announcing Friday morning that it had agreed to acquire privately-held Prexton in a deal heavily skewed to milestones down the road. Although this deal doesn’t meaningfully alter the current investment credentials for Lundbeck, it adds an interesting asset and may mark a more active stance toward recharging the company’s pipeline.

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Lundbeck Pays Up For A New Clinical Trial Asset