Forbion’s Portfolio Company, Prexton Therapeutics Acquired by Lundbeck for up to EUR 905 million (USD 1.1 billion)
in portfolio news
• Upfront payment of EUR 100 million plus up to EUR 805 million in development, regulatory and sales milestones
• Foliglurax - a first-in-class development candidate for Parkinson’s disease in Phase II clinical development
• Prexton sale marks third successful exit from Forbion’s most recent fund, Forbion III
Forbion, one of the leading European life science venture capital firms, today announces that H. Lundbeck A/S (Lundbeck) has acquired Forbion’s portfolio company Prexton Therapeutics B.V. (Prexton) for a total consideration of EUR 905 million (USD 1.1 billion).
Under the terms of the agreement, Lundbeck will pay EUR 100 million upfront to the current investors in Prexton and up to a further EUR 805 million in development, regulatory and sales milestones, depending on the successful outcome of certain undisclosed milestones. Guggenheim Securities acted as the financial advisor and Dechert LLC served as the legal counsel to Prexton.
By acquiring Prexton, Lundbeck will obtain the global rights to foliglurax, which is currently in Phase II clinical development for the symptomatic treatment of OFF-time reduction in Parkinson’s disease and dyskinesia, including Levodopa Induced Dyskinesia (LID). The first data from the ongoing Phase II clinical program is expected to become available in mid-2019.
“Forbion co-led Prexton’s Series B financing in February 2017 which raised EUR 29 million (USD 31 million) to advance the development of foliglurax. This rapid exit underscores Forbion’s ability to identify the most promising European biotech companies, including those focusing on drug development in challenging indications such as Parkinson’s disease”, commented Marco Boorsma, General Partner at Forbion. “The Prexton team has successfully and efficiently advanced foliglurax into mid-stage clinical development. Lundbeck now has the opportunity to apply its specialist knowledge and expertise in the CNS space.”
Parkinson’s disease is a devastating progressive neurological condition affecting over 6 million people worldwide. The disease is caused by the degeneration of dopaminergic brain cells. The main motoric symptoms are resting tremor, muscle rigidity, and slowed movement (bradykinesia).
Current treatments aim to replace dopamine or to mimic its effects with patients being administered with the dopamine precursor levodopa. This treatment provides adequate symptomatic relief initially but over time it loses efficacy. As the disease progresses patients experience serious, debilitating complications, such as increased OFF-time and uncontrolled movements (dyskinesia).