Human Genome Sciences has agreed to be acquired by GlaxoSmithKline, the British pharmaceutical firm, for $3.6 billion. The deal involves cash and debt for U.S. based Human Genome Sciences. Human Genome Sciences rejected an initial offer in April of 2012 as undervalued. The deal (increased approximately 10%) represents a premium of 99% to Human Genome’s closing price on April 18, the last day of trading before HGS publicly disclosed Glaxo’s initial offer. Glaxo and Human Genome jointly sell Benlysta and share financial interests in experimental drugs for diabetes and heart disease.
The Glaxo-Human Genome partnership began about 20 years ago with an investment by Glaxo to establish a research partnership. Human Genome was one of the first biotech firms to map all of the genes in the human body, leading to new understandings of gene functions and their corresponding proteins, and enabling drugs such as Benlysta, the first new drug for lupus in 50 years to be developed. Benlysta costs $35,000 per patient in a market valued at $7 billion. Human Genome reported sales of Benlysta at $52 million for last year.Pages: