Lundbeck and Proximagen Sign Strategic Partnership Agreement

H. Lundbeck A/S and Proximagen Group plc

04-Oct-2011 - Denmark

H. Lundbeck A/S and Proximagen Group plc announced that they have entered into a Strategic Partnership Agreement. The Agreement is designed to formalise a partnership between the two companies, a partnership in which Lundbeck and Proximagen will jointly apply their expertise in CNS drug development towards achieving their collective strategic and growth objectives.

As part of the Agreement, a steering committee involving experts from both companies will focus on developing three of Proximagen’s programmes, with the aim of identifying novel therapies for serious diseases such as epilepsy, pain and inflammatory disorders. Lundbeck will also receive certain negotiation rights in relation to these programmes.

Under the terms of the Agreement, Proximagen will issue 5,738,100 new ordinary 1p shares (“New Shares”) to Lundbeck at a price of 180p per New Share. The total consideration paid for the New Shares will be £10,328,580. The subscription price of 180p represents a premium of 36% over the average daily closing price of Proximagen’s shares in the six month period from 29 March 2011 to 28 September 2011.

Anders Gersel Pedersen, Lundbeck’s Executive Vice President for Research and Development, said: “We are very pleased to be working with Proximagen and its experienced scientific and management team. Proximagen has built an exciting pipeline which offers real promise in treating a number of CNS disorders. This strategic partnership will provide Lundbeck with exposure to some very exciting research programmes.”

Proximagen’s Chief Executive Officer, Kenneth Mulvany, said: “We are delighted to have Lundbeck, one of the most respected pharmaceutical companies in the CNS field, as a strategic shareholder in Proximagen. Acquiring and developing high quality assets, mitigating risk and building closer relationships with Big Pharma are three of our strategic priorities. The partnership with Lundbeck validates our strategy and represents a major step forward in realising the value of key compounds in our pipeline. We look forward to working closely with Lundbeck as we each share our expertise to develop therapies for patients.”

https://www.bionity.com/en/news/134629/lundbeck-and-proximagen-sign-strategic-partnership-agreement.html