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Amgen (AMGN) Said to Make $7B Bid for Human Genome (HGSI) in 2010

July 27, 2012 7:46 AM EDT Send to a Friend
Amgen (Nasdaq: AMGN) might be looking like a winner early, but that wasn't the case two years ago.

Current product portfolio notwithstanding, reports out today have Amgen making a $35 per share bid for Human Genome (Nasdaq: HGSI) back in August 2010. Despite the seemingly rich offer -- Human Genome's stock peaked at about $32.50 -- the $7 billion bid was rejected.

Today, Amgen is ticking higher following stronger-than-expected results for its second quarter, EPS of $1.83 beating views by 29 cents. Product sales rose 8 percent and its pipeline is in shipshape. In fact, shares are up a minimum of 44 percent since 2010, while Human Genome stock has fallen 56 percent over the same span.

Last week, Human Genome finally caved, agreeing to a $14.25 per share deal with GlaxoSmithKline (NYSE: GSK), which values the company at about $3 billion, or far less than what it would have received from Amgen.

Hindsight is 20/2, though. Human Genome had Benlysta in the works, which it hoped would propel the company to new heights. FDA approval in March 2011 led to paltry sales and a drop in Human Genome shares.

With the latest takeover, Human Genome invited Amgen to make a bid...but to no avail.

Amgen shares are about 4 percent higher in early trading, while Human Genome is flat.

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