Danish drugmaker H. Lundbeck A/S (OTCPK:HLUYY) (LUN.KO) (“Lundbeck”) made it clear that they were going to rebuild their revenue and clinical pipeline through M&A, with management highlighting around $4 billion to $5 billion in available capital and a preference for later-stage assets. After a few smaller transactions, Lundbeck finally made a big move, but management’s choice of target arguably leaves something to be desired.
Acquiring Alder BioPharmaceuticals (ADLR) gives Lundbeck a late-stage asset with minimal clinical/regulatory risk, but with significant commercial risk and not all that much pipeline extension