DOW JONES NEWSWIRES
GlaxoSmithKline PLC (GSK) has made an unsolicited takeover bid for U.S.-based Human Genome Sciences Inc. (HGSI), the target company said Thursday.
HGS said the U.K. pharmaceutical giant is offering $13.00 a share in cash, valuing it at over $2.5 billion--a price that the target company said is inadequate. HGS shares closed at $7.17 on Wednesday.
"The HGS board of directors, in consultation with independent financial and legal advisors, has carefully reviewed and considered the Glaxo offer and has determined that the offer does not reflect the value inherent in HGS," it said in a statement.
HGS also said its board has authorized the exploration of "strategic alternatives," which could include a potential sale.
A Glaxo spokeswoman said Thursday the company is planning to issue a release.
Glaxo has long been considered a potential suitor for HGS, with which it has a close relationship.
The companies have a partnership agreement on Benlysta, a treatment for lupus, under which they share profits. The drug is expected to become HGS's main revenue driver.
HGS is also co-developing two other compounds with Glaxo: darapladib, for the treatment of heart disease; and albiglutide, for diabetes. Both are in late-stage testing.
The U.S. company said it has requested additional information regarding those products in Glaxo's pipeline to which HSG has financial rights, including darapladib and albiglutide.
HGS also said it hired Goldman Sachs and Credit Suisse to assist.
At 1028 GMT, Glaxo shares were up 17 pence, or 1.2%, at 1459 pence, on a slightly higher FTSE 100 index.
-By Marta Falconi, Dow Jones Newswires; +41 43 443 8043; email@example.com