US biotechnology firm Human Genome Sciences (HGS) has set a deadline of 16 July 2012 for offers to acquire the company, but has failed to tempt GlaxoSmithKline (GSK) into the process.
HGS has undertaken the strategic alternative review to sound out potential buyers who now have until the deadline to submit definitive proposals to purchase all outstanding common shares in the company.
The company adopted the strategy immediately after GSK made its offer to acquire HGS, valuing the company at $2.6bn.
The offer was rejected out of hand, with company officials declaring that it did not represent the true value of HGS and with some even suggesting that GSK had waited until the company's share price hit rock bottom before making an approach. HGS subsequently adopted a poison pill approach to thwart GSK's attempts at a hostile takeover, further souring the once beneficial relationship.
GlaxoSmithKline extended its offer of $13 a share from 7 June to 29 June 2012, without amending its terms and with the company continuing to reiterate its stance that it will not participate in the strategic alternative review, believing that its offer does not require due diligence or financing.
No other companies have made public their interest in acquiring HGS, however GSK's attempts at a hostile approach appear to be falling on deaf ears, with less than 1% of outstanding shares in the company having been tendered prior to GSK's last deadline.
Previous to GSK's offer, the two companies had enjoyed a productive relationship, which culminated in the development of lupus treatment Benlysta, as well as late-stage cardiovascular drug darapladib.
Image: GlaxoSmithKline headquarters, located in London, UK. Photo courtesy of GlaxoSmithKline.
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