Glaxo seals $3 billion acquisition of HGS
pharmafile | July 17, 2012 | News story | Business Services, Research and Development, Sales and Marketing | Benlysta, GSK, Human Genome Sciences, R&D
GlaxoSmithKline has finally sealed the acquisition of Human Genome Sciences, the company with which it co-markets lupus treatment Benlysta.
The pharma firm first made an offer worth $2.5 billion in April, but was rebuffed by the US biotech firm’s board for several months.
After numerous tactical manoeuvres – including an attempted ‘poison pill’ provision by HGS to block a takeover – an improved offer has been accepted, valuing the company at $3 billion.
The $14.25 per share offer gives GSK full ownership of Benlysta, their co-developed and co-marketed lupus treatment, plus the firm’s pipeline assets. Most notable among these are albiglutide and darapladib.
The underwhelming sales of Benlysta since its launch in 2011 means many analysts believe these two late-stage candidates will need to perform well (if and when they are approved) to make the acquisition a success.
Darapladib is a novel cardiovascular treatment which targets inflammation in arteries, and is now in Phase III trials to determine if it can cut heart attacks and strokes in at-risk patients.
Albiglutide is a new treatment for type II diabetes in the same GLP-1 class as Novo Nordisk’s Victoza and Byetta’s Amylin. The latest trial data suggests the once-weekly injectable drug is superior to oral treatment Januvia at controlling the condition, and GSK looks set to file for approval in 2013.
GSK says the deal matches its long-term strategy of sustainable growth, enhancing R&D returns and deploying capital with discipline.
It says complete ownership of Benlysta, albiglutide and darapladib, will help it simplify and optimise R&D, commercial and manufacturing operations to advance these products most effectively, while securing the full potential long-term value of the assets.
GSK says it can save $200 million or more in cost synergies by 2015, subject to consultation, and expects the transaction to be add to core earnings from 2013.
Sir Andrew Witty, chief executive of GSK, said: “This is a natural next step in our nearly 20-year relationship with HGS, and we look forward to working with HGS to
integrate our businesses and to realising the full value of Benlysta, albiglutide, and darapladib for the benefit of patients and our shareholders.”
In a similar move last month, Bristol-Myers Squibb and AstraZeneca acquired Amylin for $7 billion. The US biotech’s diabetes drugs Byetta and Bydureon are its chief assets, and the acquisition will ramp up competition in the therapy area.
Andrew McConaghie
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