Human Genome rejects bid by GlaxoSmithKline of US$2.6 bil.


ROCKVILLE, Maryland — Biotech drugmaker Human Genome Sciences Inc. has rejected an unsolicited US$2.59 billion takeover bid by GlaxoSmithKline PLC, the British pharmaceutical giant that spent nearly two decades helping the smaller company bring its first drug to market.

Rockville, Maryland-based Human Genome Sciences said Thursday the offer undervalues the company and that it would explore other options, which could include a potential sale of the company. It invited GlaxoSmithKline to participate in its exploratory process.

GlaxoSmithKline offered US$13 per share, which is an 81 percent premium to Human Genome’s closing price on Wednesday of US$7.17 per share. Human Genome currently has about 199.1 million outstanding shares, according to FactSet.