This post has been updated.
Additional coverage: HGS rejects $2.59B buyout offer
“The offer does not reflect the value inherent” in the firm, the biotech company said in a statement. But, in light of the proposal, the board of Human Genome Sciences “has authorized the exploration of strategic alternatives in the best interests of shareholders, including, but not limited to, a potential sale of the Company.”
The Associated Press, citing FactSet, said Human Genome currently has about 199.1 million outstanding shares, setting the value of the buyout offer at about $2.59 billion.
Human Genome shares closed at $7.17 per share on Wednesday, but jumped to $13.90 in pre-market trading on Thursday, AP reported.
Acquisition rumors between GlaxoSmithKline and HGS have circulated for years. The British company is the co-developer of the systemic lupus drug Benlysta, which was approved by the Food and Drug Administration last year and marks Human Genome Science’s first commercially viable product.
HGS said it has invited GlaxoSmithKline to continue discussions about a possible sale or other transactions, and is seeking more information from GlaxoSmithKline about products in its clinical pipeline that HGS has been involved in developing.
Th Rockville company has retained Goldman, Sachs & Co. and Credit Suisse Securities to assist the process of evaluating its options, with Skadden, Arps, Slate, Meagher & Flom and DLA Piper acting as legal counsel.
“There can be no assurance that any transaction will occur or if so on what terms,” the company’s news release said. “HGS does not intend to discuss the status of its evaluation unless and until a specific transaction has been approved.”