The Telegraph reports that rumors are beginning to pop up that GlaxoSmithKline is preparing to make a $30-a-share offer to buy up the newly hot stock of Human Genome Sciences. In recent weeks, HGS shares have been jazzed by the stunning clinical success of its lupus drug Benlysta, which is partnered with Glaxo.
If the rumors are even remotely true, it would reflect a huge premium over HGS' Monday close of $17 a share. And this morning the rumors appear to be adding to the value of HGS' stock, up about 10 percent in early trading. Just a few weeks ago HGS outlined plans to raise $310 million in an offering at $14 a share.
In mid-July, HGS startled the investment community with unexpectedly positive pivotal data for its lupus therapy. "The BLISS-52 results demonstrated that Benlysta has the potential to become the first new approved drug in decades for people living with systemic lupus," said CEO H. Thomas Watkins at the time. HGS partnered with GlaxoSmithKline on the program back in 2006.
- read the item in The Telegraph