Business

GlaxoSmithKline in takeover bid for Human Genome Sciences

LONDON - GlaxoSmithKline PLC has made an offer to take over US drug maker Human Genome Sciences Inc. that values the company at nearly $2.6 billion.

GlaxoSmithKline, which has profit-sharing agreements with HGS on three drugs but a minimal shareholding, said Wednesday it is offering $13 cash per share for the company. A private offer last month by GSK at the same price was rejected by HGS management.

HGS shares closed at $14.39 Tuesday on the Nasdaq exchange.

Advertisement

The tender offer, which is a direct approach to the target’s shareholders, will remain open for 20 days.

Get Talking Points in your inbox:
An afternoon recap of the day’s most important business news, delivered weekdays.
Thank you for signing up! Sign up for more newsletters here

Human Genome Sciences, based in Rockville, Md., has a 50-50 profit sharing agreement with GSK on the lupus drug Benlysta, which won regulatory approval in the United States and Europe last year.

The two companies are also cooperating in late-stage development of darapladib, for the treatment of cardiovascular disease, and albiglutide, for type 2 diabetes.