LONDON -- GlaxoSmithKline (GSK) said Wednesday it is taking its hostile $2.6 billion takeover offer for Human Genome Sciences (HGS) direct to the US biotech's shareholders, by launching a tender offer at $13 a share this week.
HGS, a US pioneer of gene-based drug discovery that sells a new drug for lupus with Glaxo, so far has rejected the offer made last month, pointing out that its shares traded at $30 a year ago. The target company has started a strategic review that it hopes will encourage rival bids.
But the likelihood of a rival offer is limited, given that three of HGS' major drugs are joint ventures with the UK's largest drugmaker.
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CEO Andrew Witty during a visit to GlaxoSmithKline's plant at Ulverston in the UK in March.
Glaxo comarkets lupus drug Benlysta with HGS. The biotech also has financial interests in other experimental drugs under development at Glaxo, including darapladib for cardiovascular disease and once-weekly diabetes drug albiglutide.
Glaxo said Wednesday it will not take part in HGS's strategic review, as it believes it is HGS' only realistic partner.
"We are the compelling owner for this business [HGS] as we have the rights to and control of the company's three main assets, including the only one so far launched, Benlysta," GSK CEO Andrew Witty told journalists last month, adding, "We believe this is the right time to maximize value for both sets of shareholders."
Glaxo will formally launch its $13 per share tender offer for HGS this week. The offer would remain open for 20 days.
Shares in Glaxo traded down 1.6 percent in London afternoon trade.
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