by Christopher Freeburn | July 16, 2012 12:04 pm
GlaxoSmithKline (NYSE:GSK) has emerged victorious in its attempt to purchase long-time research partner Human Genome Sciences (NASDAQ:HGSI).
The British drug giant made a $2.6 billion friendly bid for HGS in April, but that was rejected by the American research firm. Glaxo then declared its intention to acquire the company through a hostile takeover in May.
Now the companies have agreed to a merger. And GlaxoSmithKline has raised its price, the Associated Press notes.
GlaxoSmithKline will pay $14.25 a share, up from an earlier offer of $13 a share, for HGS, bringing the total cost of the acquisition to $3.6 billion.
HGS had threatened to launched a “poisoned pill” defense against the takeover.
The merger gives GlaxoSmithKline the rights to HGS’s lupus, diabetes and atherosclerosis drugs. The company said it expected to achieve $200 million in cost savings with the merger, which will begin to contribute to revenues within three years.
Shares of GlaxoSmithKline rose fractionally in Monday afternoon trading in New York.
Source URL: http://investorplace.com/2012/07/glaxosmithkline-to-pay-3-6b-for-human-genome-sciences/
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