GSK agrees to buy Human Genome Sciences for US $3.6 billion
GlaxoSmithKline has announced it has entered into a definitive agreement with Human Genome Sciences (HGS), under which GSK will acquire HGS for US $14.25 per share in cash. The transaction values HGS, on an equity basis, at approximately US $3.6 billion.
GSK’s long-term strategy, to deliver sustainable growth, enhance R&,D returns and deploy capital with discipline, aligns well with this transaction. While the companies already share profits for lupus drug, BENLYSTA, this transaction will mean that GSK gains complete ownership of this drug, as well as diabetes drug, albiglutide, and coronary heart disease drug, darapladib.
“We are pleased to have reached a mutually beneficial agreement with HGS on friendly terms and believe the combination of GSK and HGS represents clear financial and strategic logic for both companies and our respective shareholders. The transaction meets GSK’s strict financial criteria for acquisitions, and we expect will deliver significant returns over the long-term. 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 realizing the full value of BENLYSTA, albiglutide, and darapladib for the benefit of patients and our shareholders.”
Sir Andrew Witty, Chief Executive Officer of GSK.
GSK has said it expects the deal to be accretive to core earnings beginning in 2013 and that it expects to achieve US $200 million in cost synergies by 2015.
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