Human Genome (HGSI) Could Get 15% More in Takeover Bid - Analyst
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Price: $14.24 --0%
Rating Summary:
5 Buy, 18 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 19 | Down: 21 | New: 29
Rating Summary:
5 Buy, 18 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 19 | Down: 21 | New: 29
Trade HGSI Now!
Human Genome (Nasdaq: HGSI) is trading slightly higher amid a note out Friday morning mulling the potential for a more robust bid from GlaxoSmithKline (NYSE: GSK).
According to RBC Capital analyst Michael Yee, Human Genome might draw a bid of $15 per share, up from Glaxo's current $13 per share bid. Glaxo's tender offer for Human Genome is set to expire at 5pm Friday, though its likely the pharma giant will extend that offer.
The analyst cites future darapladib interim analysis and the Benlysta assessment rating for Germay.
More bidders might vie for Human Genome after Anthera Pharma's (Nasdaq: ANTH) blisibimod, an experimental lupus drug, missed endpoints in Phase 3 trials.
In addition to RBC, Piper Jaffray mulls that Benlysta has a net present value of $12 per share, meaning a cost savings for Glaxo of about $2 to $4 per share. Piper also notes that using CVRs for darapladib, albiglutide may resolve any price gap.
But, investors are taking a bullish stance on Human Genome since Glaxo's new offer. Short interest on the stock is just 5.3 percent of float, down from 28 percent in March.
Shares are about 0.3 percent higher in early trading.
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According to RBC Capital analyst Michael Yee, Human Genome might draw a bid of $15 per share, up from Glaxo's current $13 per share bid. Glaxo's tender offer for Human Genome is set to expire at 5pm Friday, though its likely the pharma giant will extend that offer.
The analyst cites future darapladib interim analysis and the Benlysta assessment rating for Germay.
More bidders might vie for Human Genome after Anthera Pharma's (Nasdaq: ANTH) blisibimod, an experimental lupus drug, missed endpoints in Phase 3 trials.
In addition to RBC, Piper Jaffray mulls that Benlysta has a net present value of $12 per share, meaning a cost savings for Glaxo of about $2 to $4 per share. Piper also notes that using CVRs for darapladib, albiglutide may resolve any price gap.
But, investors are taking a bullish stance on Human Genome since Glaxo's new offer. Short interest on the stock is just 5.3 percent of float, down from 28 percent in March.
Shares are about 0.3 percent higher in early trading.
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Piper Jaffray, RBC Capital
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