GSK to buy HGS for US$ 3bn
18.07.2012 - A three month buyout dispute has come to an end: Drug giant GlaxoSmithKline plc is to buy Human Genome Sciences Inc. for about US$3,6bn (€2,9bn) or US$3bn after subtracting HGS’s cash and debt, the companies said.
The deal follows weekend talks in which the UK's largest pharmaceutical company agreed to raise its cash bid to US$14.25 a share from US$13. The boards of both companies have approved the deal. GSK said the deadline to tender shares is July 27. The pharma expects to achieve at least US$200m in cost savings from the deal by 2015.
The purchase gives GSK rights to several recently-launched medicines. Thomas Watkins, 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.” Rockville-based Human Genome Sciences and GSK originally partnered in 1993 to develop products based on genes identified by the biotech. Last March, the partners launched the first approved product developed under the deal, belimumab (Benlysta). GSK will also gain full rights to two Phase III products: cardiovascular compound darapladib and diabetes product albiglutide. GSK has made multiple buyout offers since April that valued HGS at US$2.6bn, or US$13 per share, but the company’s board of directors repeatedly rejected them as too low .