Lunbeck acquires Synaptic in $122M deal

17 March 2003

Danish drugmaker Lundbeck AS has acquired USA-based biotechnology firmSynaptic Pharmaceutical in a deal worth some 851.4 million Danish kroner ($122.5 million). The bid to purchase Synaptic, which specializes in diseases of the central nervous system, was first announced late last year (Marketletter December 2, 2002).

Lundbeck is currently on the acquisition trail and this deal comes after it has already been linked to a move for Bayer AG's pharmaceutical division, as well as that of France's Beaufour Ipsen. The Danish company is targeting growth through external means as it faces up to the threat of increased generic competition for its lead products and rethinks its traditional organic approach to product development. Lundbeck's top-selling drug is the antidepressant Celexa/Cipramil (citalopram), which accounts for 70% of total sales.

Historically, Lundbeck has pursued a highly-focused strategy of specialization with the development of drugs in key indication areas, such as for the treatment of depression. However, with a dearth of home-grown product candidates, the company has acquired Synaptic in a bid to beef up its pipeline. New compounds entering the Lundbeck portfolio include SNEC-2 for the treatment of depression. The drug acts via a completely new mechanism of action and is currently in Phase I clinical trials (Marketletter February 11, 2002).

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