GlaxoSmithKline wins takeover bid for Human Genome

LONDON — U.K. drug maker GlaxoSmithKline said Monday it had secured its takeover of Human Genome Sciences after agreeing to pay a higher price for the U.S. biotechnology company.

In a joint announcement by the two companies, GSK said it would pay $14.25 per share for Human Genome Sciences, up from its previous offer of $13 per share. The offer values Human Genome Sciences at $3.6 billion.

Directors of both companies have approved the deal, the announcement said.

HGS, based in Rockville, Maryland, agreed on the takeover following a prolonged battle in which it had put up a “poison pill” defense which would have diluted holdings if anyone attempted to acquire 15 percent or more of its stock without board approval.

Under the agreement, GSK said it gains full ownership of the drugs Benlysta for lupus, albiglutide for Type 2 diabetes and darapladib which is a possible treatment for atherosclerosis.

GSK’s higher offer followed the release of data from a cardiac safety study which was positive for albiglutide.

“After a thorough analysis of strategic alternatives, HGS has determined that a combination with GSK is the best course of action for our company and the best way to maximize value for our stockholders,” said H. Thomas Watkins, president and CEO of HGS.

GlaxoSmithKline said it expects at least $200 million in cost synergies to be realized by 2015, and expects the transaction to be accretive to core earnings beginning next year.

GSK shares were marginally lower at 1,444.5 pence in afternoon trading in London.