BioCentury
ARTICLE | Finance

HGS in hindsight

Human Genome spurned $6.6B offer two years before $2.9B takeout deal with GSK

July 30, 2012 7:00 AM UTC

Human Genome Sciences Inc. (NASDAQ:HGSI) refused a takeout offer two years ago for more than twice the $2.9 billion partner GlaxoSmithKline plc (LSE:GSK; NYSE:GSK) will pay for the biotech. Although HGS hasn't disclosed who made the bid in August 2010, it was widely rumored on Wall Street to be Amgen Inc. (NASDAQ:AMGN).

According to a recent SEC filing, the bid was $35 a share, which would have valued HGS at $6.6 billion. That was a 33% premium to HGS's $26.33 share price on Aug. 2, 2010, the day before it received the offer. In April that year, HGS shares reached their highest point since the genomics bubble - about $33...