Rumours abound on GSK-HGS takeover bid
pharmafile | October 20, 2011 | News story | Research and Development, Sales and Marketing |Â Â Benlysta, GSK, HGSÂ
Rumours are gathering pace that GlaxoSmithKline may launch a takeover bid for struggling US firm Human Genome Sciences.
British tabloid the Daily Mail reports GSK could be about to launch a $25 a share cash offer for the Maryland-based firm.
This would represent a premium of around 122% on the $11 a share performance HGS is currently trading at.
But GSK may to have act quickly as both Merck and Biogen are also rumoured to be interested in snapping up the firm, according to the Daily Mail.
GSK and HGS recently gained US and European approval for their lupus treatment Benlysta in earlier this year, making it the first treatment for of its kind to reach the market for 50 years.
Despite this approval and its commercial agreement with the GSK, the UK’s biggest pharma firm, HGS’ stock slumped from a high of $30 a share to just $11 this week.
This comes amid questions about Benlysta’s superiority over existing treatments and ongoing concerns that the US firm’s manufacturing plants will not be able to keep up with the demand seen for the drug.
This has been seen with a number of smaller firms. Earlier this year Dendreon had to cut their sales projections for their recently approved prostate cancer Provenge as it could not keep up with demand for the drug.
GSK/HGS’ Benlysta, like Provenge, had been predicted to reach blockbuster status but has so far disappointed in the US, leading analysts to slash their sales projections.
Ben Adams
Related Content
GSK’s Exdensur receives MHRA approval for asthma and rhinosinusitis
GSK’s Exdensur (depemokimab), a twice-yearly biological medicine, has received approval from the UK Medicines and …
Multiple myeloma treatment approved in Japan
GSK’s Blenrep (belantamab mafodotin) combinations have been approved by Japan’s Ministry of Health, Labour and …
US FDA expands Jemperli (dostarlimab-gxly) plus chemotherapy approval to all adult patients with primary advanced or recurrent endometrial cancer as the first and only immuno-oncology-based treatment to show an overall survival benefit
PHILADELPHIA–GSK plc today announced the US Food and Drug Administration (FDA) has approved Jemperli (dostarlimab-gxly) in combination …
