HUMAN GENOME Sciences more than doubled in trading yesterday as the US-based biotechnology company put itself up for sale after rejecting a $2.59 billion acquisition bid from GlaxoSmithKline.
Human Genome, a partner with Glaxo on the lupus treatment Benlysta, rose to $14.16 at 12:38pm New York time after earlier reaching $14.61.
Glaxo’s $13-a-share cash offer, an 81 per cent premium to Wednesday’s closing price of $7.17, does not reflect the drug developer’s value, Human Genome said in a statement that indicated the company may shop itself to others.
The rejection reflects concerns from Human Genome stockholders who bought at a price higher than the offer, said two people with knowledge of the matter.
All but three of the 25 largest shareholders acquired stock at a higher price, said the people, who asked not to be named because the talks are private.
Glaxo’s interest “makes real sense”, said Sven Borho, a partner with OrbiMed Advisors in New York. “Glaxo has the inside track on the pipeline. Nobody is going to go into a bidding war with them.” – (Bloomberg )
