Please login to the form below

Not currently logged in
Email:
Password:

GSK extends bid for HGS once again

Pharma company's hostile takeover bid rumbles on

Benlysta - GSK body

GlaxoSmithKline has extended the tender offer for shares in Human Genome Sciences for a second time as its $2.6bn hostile takeover bid rumbles on.

GSK has set a new deadline of July 20 for its $13-per-share bid - having already extended it from June 7 to June 29 - but once again has declined to raise the value of its offer.

The new deadline also comes hard on the heels of the July 16 date set by HGS to complete its own tender process for proposals from other interested parties, with which GSK has persistently refused to engage. 

Analysts suggested the timing is designed to pressure HGS shareholders into making a decision after the tender process concludes.

"GSK believes the three months that will have passed since the start of this process is more than adequate time for the HGS board to bring it to completion," said the pharma multinational in a statement, adding that there is no guarantee it will extend its offer thereafter.

In response, HGS has pointed out that around 375,000 shares of HGS common stock have been tendered to GSK, and this represents less than 1 per cent of its outstanding shares.

The tender process for alternative proposals "continues to be active and fully underway", it added, although to date no other company has made their interest in HGS public.

A complicating factor for any other would-be suitor is GSK's close relationship with HGS, which includes co-marketing of the lupus treatment Benlysta (belimumab) as well as shared interested in the investigational drugs darapladib for atherosclerosis and diabetes candidate albiglutide.

GSK insists that its own offer reflects the value of these programmes, HGS' operating and financial assets, as well as expected cost synergies of at least $200m.

2nd July 2012

Share

Featured jobs

Subscribe to our email news alerts

PMHub

Add my company
Adelphi Research UK

Adelphi Research UK is a healthcare insight partner. We uniquely blend robust market research with a consultancy approach, to guide...

Latest intelligence

If you needed an organ transplant, would you have one?
Lauren Packer discusses the worsening problem in the UK with an imbalance between the number of organs needed, and the number of those being donated....
Why tugging at our heartstrings is no longer enough to make us open our purses
Charlotte Shyllon (Director and Partner) and Maren Thurow (Senior Account Executive), discuss the highly emotive Make a Child Cry campaign video from Doctors of the World (Médecins du Monde)....
quantify_messages.png
Exploring full potential of e-detailing data
Today’s high quality e-detailing data can create better quality conversations with healthcare professionals and result in improved access and relationships....

Infographics