Human Genome Sciences, GlaxoSmithKline deal
Human Genome rejected an unsolicited takeover offer from partner GlaxoSmithKline for $13 per share, or about $2.6 billion in cash based on 200 million shares outstanding at the end of 1Q12. The price is an 81% premium to Human Genome's close of $7.17 on April 18, before the offer was announced. Human Genome, which said the offer did not reflect its "inherent" value, retained Goldman Sachs and Credit Suisse to assist in exploring strategic alternatives, including a potential sale. The biotech also requested additional information on products out-licensed to GSK, including darapladib and albiglutide, which are in Phase III testing to treat coronary heart disease and Type II diabetes, respectively. Albiglutide is a genetic fusion of human albumin and glucagon-like peptide-1 (GLP-1) using albumin fusion technology. Darapladib is a small molecule inhibitor of vascular inflammation mediator lipoprotein-associated phospholipase A2 ( Lp-PLA2).
Human Genome 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, lupus drug Benlysta belimumab. Human Genome reported 2011 revenue of $131 million, including $52.3 million recognized from sales of Benlysta (see BioCentury, April 18, 2011). ...