Human Genome Sciences Rejects $2.6B Hostile Takeover Bid by GSK
HGS, which closed at $7.17 yesterday, was offered $13 per share.!--h2>
Human Genome Sciences (HGS) has rejected a $13 per share, approximately $2.6 billion hostile takeover bid by GlaxoSmithKline (GSK) claiming—not unexpectedly—that it doesn’t consider the offer represents the firm’s true value. HGS’ stock closed at $7.17 per share yesterday, but has seriously nosedived over the last 12 months from a high of just under $30 per share at about this time last year.
In early morning trading today, however, HGS' stock skyrocketed to reach $14.48, a 101.95% increase from yesterday's close. HGS says that it is looking at viable options for its future, including a potential sale, and has invited GSK to participate in the process.
The firm has, in addition, requested additional information from GSK on darapladib and albiglutide, two Phase III products in the latter’s pipeline to which HGS has substantial financial rights. Darapladib is in development for the treatment of cardiovascular disease, and albiglutide is currently being developed for the treatment of type 2 diabetes.
HGS’ monoclonal antibody therapeutic Benlysta was approved last year by FDA for the treatment of systemic lupus erythematosus. The drug was developed in collaboration with GSK under a 2006 cost- and profit-sharing agreement.