GSK wins US$3bn takeover bid for Human Genome Sciences
UK pharmaceutical firm will pay $14.25 per share in cash for US biotechnology group
GlaxoSmithKline (GSK) is to acquire Human Genome Sciences (HGS) for US$3bn, bringing to an end a three-month battle for control of the US biotechnology firm. The boards of both companies have approved the deal.
GSK raised its offer from US$13 a share to $14.25 this week to gain control of Benlysta (belimumab), a treatment for autoimmune disease lupus, which was jointly developed with HGS under an agreement signed in 2006 and approved by the US FDA in March last year.
In addition GSK gains experimental medicines albiglutide for Type 2 diabetes and heart disease treatment darapladib.
Thomas Watkins, president and chief executive of HGS, said: ‘After a thorough analysis of strategic alternatives, HGS has determined that a combination with GSK is the best course of action for our company and the best way to maximise value for our stockholders.
‘HGS has had a long and productive working relationship with GSK, and together we will be uniquely positioned to achieve the full potential of Benlysta and other products in our pipeline.’
GSK said it would now be able to ‘simplify and optimise r&d, commercial and manufacturing operations to advance these products most effectively and efficiently while securing the full potential long-term value of the assets’.
The UK-based pharmaceutical firm expects to achieve at least $200m in cost synergies by 2015, and expects the transaction to add to core earnings from 2013.
Sir Andrew Witty, chief executive of GSK, said: ‘We are pleased to have reached a mutually beneficial agreement with HGS on friendly terms and believe the combination of GSK and HGS represents clear financial and strategic logic for both companies and our respective shareholders.’
