H Lundbeck A/S has explored a purchase of Xeris Biopharma Holdings Inc., a US company known for injectable treatments, according to people who asked not to be named because the information is private. The Danish drugmaker has been working with advisers as it considers a possible move, and those people cautioned there is no certainty the interest will lead to a deal. A Lundbeck representative offered no comment.
Xeris pushed back on the notion, with a spokeswoman saying the company is "not for sale" and is "laser focused on improving patient lives by developing and commercializing" its medicines.
Traders noticed the chatter. Xeris shares climbed to their highest mark since 2019 on Tuesday and have risen more than 23% over the last 12 months, valuing the company at about $1.8 billion. In Copenhagen on Wednesday morning, Lundbeck's stock was off as much as 1.5% during the early session.
Xeris develops therapies for endocrine and rare conditions and currently sells three approved medicines. Its lineup includes Recorlev, an oral therapy used to reduce cortisol in adults diagnosed with Cushing's syndrome. The company is also working on a once-weekly injection for hypothyroidism, a disease that has typically required a daily pill. For the quarter that ended in June, Xeris reported $92 million in revenue and surprised analysts by posting a net loss.
Lundbeck concentrates on brain and mental health conditions - such as Parkinson's disease, anxiety, and schizophrenia. Its majority owner, Lundbeck Foundation, has previously backed research into delivering injections in the brain as a possible way to treat type 2 diabetes. Lundbeck's market value is roughly 43.3 billion kroner, or about $6.6 billion. Mid-cap pharma groups like Lundbeck have been more active buyers lately as they look to bulk up pipelines, and in 2024 Lundbeck agreed to acquire Longboard Pharmaceuticals Inc., a neurology specialist, for around $2.6 billion.
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If a formal offer arrives, it would pair a brain health specialist with a company strong in injectables and endocrine care, potentially broadening Lundbeck's pipeline and giving Xeris more heft to advance launches and late-stage programs. For now, Xeris says it is not for sale, and on Tuesday Xeris shares reached their highest level since 2019, while Lundbeck dipped as mid-cap pharma keeps shopping for growth. Watch whether any bid materializes and how pricing, if it happens, lines up with Xeris's revenue trend and its once-weekly hypothyroidism candidate.
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