GlaxoSmithKline $2.6 billion tender offer for Human Genome Sciences saga continues

Continuing its attempts to gain control of its development partner Human Genome Sciences (Nasdaq: HGSI), UK pharma giant GlaxoSmithKline (LSE: GSK) on Friday extended its original $13 a share – a total of around $2.6 billion - tender offer to acquire all of the outstanding shares of HGS to July 20, having recently pushed the date back to June 29.

GSK has so far captured less than 1% of shares in HGS, which earlier this month set a date of July 16 for the submission of definitive acquisition proposals by interested parties, including calling on GSK to take part in this process, which the UK firm has persistently declined (The Pharma Letter June 18). No alternative bidders for HGS, which has instigated a “poison pill” plan to deflect the GSK hostile offer, appear to have emerged to date.

GSK maintains its offer reflects the value of their now marketed lupus drug Benlysta (belimumab), as well as developmental compounds darapladib and albiglutide on which the two companies are partnered, HGS's operating and financial assets, and expected cost synergies of at least $200 million, the UK firm stressed.