July 16 - GlaxoSmithKline is to acquire its long-time partner Human Genome Sciences for about $3 billion, ending a three-month hostile pursuit of the U.S. biotech company on friendly terms after sweetening its offer. Andrew Potter reports.
The hostile pursuit is finally over. Pharmaceutical giant GlaxoSmithKline has acquired biotechnology company Human Genome for $3 billion, ending a takeover saga which has run for months. The deal means GSK gets the rights to a recently launched drug for lupus. It also gets full ownership of experimental medicines for diabetes and heart disease which are in late-stage development. SOUNDBITE: MILENA IZMIRLIEVA, SENIOR MANAGER, ADVANCED MARKETS HEALTHCARE & PHARMA AT IHS GLOBAL INSIGHT, SAYING (English): "Obviously they've struggled for a while to make this happen. But it's something that will certainly boost their pipeline. It will reduce the company's exposure to the risk of having to pay substantial milestones in royalty payments in future." Human Genome had rejected GSK's offer as not high enough. The breakthough came after it was bumped up a further 10 percent, to a price analysts say was a good deal, much the frustration of Human Genome investors hoping for more. Andrew Potter, Reuters