GSK And HGS Face Off Over Buyout

Human Genome Sciences says the long-term blockbuster opportunity in Benlysta and the potential of its pipeline products are under-valued by GlaxoSmithKline’s takeover offer. Management at GSK, however, plays down any talk of increasing its bid.

GlaxoSmithKline Inc. and Human Genome Sciences Inc. made their case to investors regarding GSK’s proposed buyout of HGSI in back-to-back sales and earnings calls. HGS said the $13-per-share offer undervalues the company and played up the market opportunity for jointly owned pipeline drug darapladib during its April 24 first quarter sales and earnings call. Meanwhile, GSK defended its offer in a next-day conference call and pointed to the significant pipeline risks associated with darapladib.

“As far as HGS is concerned, we think we've made a very full offer for HGS,” said GSK CEO Andrew...

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