Denmark's Lundbeck has agreed to acquire San Diego-based Abide Therapeutics for an upfront payment of $250 million with a commitment to pay future development and sales milestones of up to $150 million.
The acquisition provides Lundbeck a novel discovery platform and a U.S.-based research hub. After the sale closes, Abide’s laboratory in La Jolla, California will become a U.S. drug discovery hub for Lundbeck.
The main selling point for Lundbeck was Abide's lead molecule, ABX-1431, currently in a Phase IIa trial for the treatment of Tourette syndrome and a Phase I trial for neuropathic pain. ABX-1431 is designed to increase the power of endocannabinoid signaling to restore homeostatic balance in the central nervous system. Lundbeck believes it has the potential to address multiple indications in psychiatry and neurology.
The deal is expected to close during the second quarter of 2019.
Read the press release