GlaxoSmithKline goes on attack over Human Genome bid

UK pharma giant GlaxoSmithKline (LSE: GSK) went into attack mode this morning, taking its unsolicited $2.6 billion bid for Human Genome Sciences (Nasdaq: HGSI) direct to shareholders. HGS has rejected the offer, claiming it undervalues the company (The Pharma Letter April 20.

GSK announced that it will not participate in strategic alternatives review process and will instead commence a tender offer this week to acquire all of the outstanding shares of HGS for $13.00 per share in cash, which the company says represents a premium of 81% to HGS’s closing share price of $7.17 on April 18, the last trading day before HGS publicly disclosed GSK’s private offer.

GSK says it continues to believe that now is the appropriate time in the evolution of the GSK/HGS relationship for the companies to combine and that GSK is uniquely positioned to deliver on the promises of Benlysta (belimumab), albiglutide and darapladib. The UK firm also said it values the long relationship it has with HGS and has clearly stated its preference to complete a transaction on a friendly basis in a timely fashion, and remains willing to meet and review its offer with HGS at any time.