A nearly two-decade-long research partnership between GlaxoSmithKline (NYSE:GSK) and Human Genome Sciences (NASDAQ:HGSI) didn’t stop Glaxo from making an unsolicited $2.6 billion bid for the biotech firm.
It also didn’t stop HGSI from rejecting it.
Human Genome Sciences turned down the $13-per-share cash offer, saying it “does not reflect the value inherent in HGS.” The news double HGSI shares Thursday, rising more than $7 to just over $14.
The two companies have collaborated on a number of new drugs, including Benlysta, the first new treatment for Lupus in half a century, which was introduced last year.
The Wall Street Journal speculated that the surprise bid likely indicated that Glaxo thinks new drugs for diabetes and cardiovascular disease, developed jointly by the two companies and currently in clinical trials, will prove successful and ultimately be brought to market.
After declining Glaxo’s bid, Human Genome Sciences requested more data on the diabetes and cardiovascular disease drugs that Glaxo is testing, pointing out that HGSI has a significant financial interest in them.
The relationship between Glaxo and HGSI began in 1993 when Glaxo paid $125 million to create a research partnership.
Human Genome Sciences has been a pioneer in adapting data from the human gene map to drug development.