Disappointing Trial Results on Albiglutide Make Glaxo Bid for Human Genome Less Likely -RBC (GSK) (HGSI)

Traders sold shares of Human Genome Sciences (Nasdaq: HGSI) Thursday following a late-stage study which showed GlaxoSmithKline's (NYSE: GSK) experimental albiglutide disappointed compared to Novo Nordisk's (NYSE: NVO) Victoza.

Diabetes patients treated with the Glaxo product demonstrated a 0.78 percent reduction in glucose in the blood in the trial, while Victoza, a daily shot, was shown to reduce glucose by 0.99 percent.

While shares of Glaxo fell about 1 percent, Human Genome shares tumbled almost 7 percent.

As RBC Capital's Michael Yee said in a research note from this morning, the results essentially make Human Genome's single-digit royal stream less valuable. Going a little further, Yee suggests Glaxo now has less incentive to make an offer for Human Genome.

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