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LONDON — GlaxoSmithKline plans to acquire Human Genome Sciences (HGS) in a cash deal of about $3 billion.
GSK said Monday that the purchase of HGS will give the company full ownership of the medications Benlysta (lupus), albiglutide (type 2 diabetes) and darapladib (coronary heart disease).
In March 2011, GSK and HGS announced Food and Drug Administration approval of Benlysta, which marked the first new approved drug for lupus in over 50 years. The medication was also the first from HGS to get FDA approval.
"We are pleased to have reached a mutually beneficial agreement with HGS on friendly terms and believe the combination of GSK and HGS represents clear financial and strategic logic for both companies and our respective shareholders. The transaction meets GSK’s strict financial criteria for acquisitions, and we expect will deliver significant returns over the long-term," GSK chief executive officer Andrew Witty said in a statement. "This is a natural next step in our nearly 20-year relationship with HGS, and we look forward to working with HGS to integrate our businesses and to realizing the full value of Benlysta, albiglutide, and darapladib for the benefit of patients and our shareholders."
H. Thomas Watkins, president and CEO of HGS, said the deal came after the company underwent a thorough analysis of strategic alternatives.
"HGS has had a long and productive working relationship with GSK, and together we will be uniquely positioned to achieve the full potential of Benlysta and other products in our pipeline for the benefit of those battling serious disease around the world," Watkins stated. "I would like to thank the dedicated employees of HGS, who have worked tirelessly to achieve breakthrough results and are the foundation of our success. We look forward to working with GSK to ensure a seamless transition for all of our stakeholders."
