Zacks analysts view progress of GSK bid for Human Genome Sciences

UK pharma giant GlaxoSmithKline (LSE: GSK) recently announced that the waiting period with respect to its tender offer for the acquisition of the outstanding shares of Human Genome Sciences (Nasdaq: HGSI) has expired under the Hart-Scott-Rodino Antitrust Improvement Act of 1976 (HSR Act). Meanwhile, Human Genome’s board of directors continued to advise its stockholders against GSK’s tender offer.

Earlier, in April this year, GSK made an offer to acquire HGS for $13 per share in cash. However, HGS’ board had rejected the offer as it believed that the price undervalued the company (The Pharma Letters passim). GSK went ahead and commenced a tender offer on May 10, which is set to expire on June 7, 2012.

Analysts at Zacks Equity Research note that, if GSK succeeds in acquiring HGS, it would gain full control over Benlysta ((belimumab; approved for treating systemic lupus erythematosus). GSK will also gain control over late-stage candidates such as darapladib (cardiovascular disease) and albiglutide (type 2 diabetes).