GSK makes hostile $2.6bn for Human Genome Sciences
10.05.2012 - After takeover negotiations were rejected by Human Genome Sciences GlaxoSmithKline has made a hostile bid.
London/Rockville – The British drugmaker said he will launch a tender offer of $13 per share next week totalling $2.6bn. Until now, the management of HGS, which co-markets the new lupus antibody Benlysta (belimumab), has resisted to GSK’s takeover plans. The company that has partnered three of its clinical programmes with GSK said the offer was too low. In reality, HGS’ shares were valued at $30 a year ago. GSK’s bid represents an 81% premium on HGS current share value.
Analysts initially expected Benlysta to become a blockbuster with potential annual revenues of $2-3bn after it was approved in the US, Canada and Europe last year as therapy in adults with active autoantibody-positive systemic lupus erythematosus, with a high degree of disease activity despite standard therapy. However, market expectations of the first new treatment approved for lupus in 56 years were dented in Europe, where GSK markets the drug, after it was rebuffed in two lead markets. In late 2011, British NICE said the treatment was to costly. In May, German health technology assessor IQWiG said GSK failed to prove that the drug offers an advantage to standard therapy. Lupus patients will be charged $35,000 for 1 year of treatment in the US and $23,000 per year in Europe.
Besides the lupus treatment, which had been developed with GSK since 2006, HGS has two further compounds partnered by GSK in Phase III development. Darapladib, a small-molecule Lp-PLA2 inhibitor, is developed for the treatment of coronary heart disease and Albiglutide, an albumin-fusion protein targets the market for diabetes 2 therapies.