Human Genome (HGSI) Could Become Takeover Target Upon Approval of Benlysta
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Human Genome Sciences (Nasdaq: HGSI) is a takeover target? Rumors have been around forever, but is there something real to them this time...
Well, yes, according to a recent Bloomberg report. And GlaxoSmithKline
(NYSE: GSK), their partner in developing new lupus treatment, Benlysta, is the leading candidate to make a move on the Rockville, MD-based drug maker.
Benlysta, which is expected to cost patients $15,000 - $20,000 per year for treatment, is the driving force behind the acquisition rumors. Bloomberg estimates that annual sales of the drug could top $2.1 billion by 2014.
Additionally, Glaxo is looking for growth with more “bolt-on acquisitions"; namely something in the range of hundreds-of-millions to mid-billion dollars.
Convenientely, HGSI currently carries a market cap of $5 billion, something that is sure to move higher upon approval of Benlysta (which is expected by December 9, pending no hold-ups).
The approval may attract interest from several other big-pharma's, such as Amgen (Nasdaq: AMGN), Roche (OTCBB: RHHBY), Abbot Labs (NYSE: ABT), and Johnson & Johnson (NYSE: JNJ). These companies would see a fit for their sales forces that already market rheumatoid arthritis drugs such as Amgen's Enbrel, Abbott's Humira and J&J’s Remicade, according to an RBC Capital analyst.
The President for the Lupus Foundation of America said that Benlysta would be the first lupus-specific treatment. Other treatments have been approved over the last 50 years, but some offer side-effects that are worse than the disease, according to the Foundation.
Well, yes, according to a recent Bloomberg report. And GlaxoSmithKline
(NYSE: GSK), their partner in developing new lupus treatment, Benlysta, is the leading candidate to make a move on the Rockville, MD-based drug maker.
Benlysta, which is expected to cost patients $15,000 - $20,000 per year for treatment, is the driving force behind the acquisition rumors. Bloomberg estimates that annual sales of the drug could top $2.1 billion by 2014.
Additionally, Glaxo is looking for growth with more “bolt-on acquisitions"; namely something in the range of hundreds-of-millions to mid-billion dollars.
Convenientely, HGSI currently carries a market cap of $5 billion, something that is sure to move higher upon approval of Benlysta (which is expected by December 9, pending no hold-ups).
The approval may attract interest from several other big-pharma's, such as Amgen (Nasdaq: AMGN), Roche (OTCBB: RHHBY), Abbot Labs (NYSE: ABT), and Johnson & Johnson (NYSE: JNJ). These companies would see a fit for their sales forces that already market rheumatoid arthritis drugs such as Amgen's Enbrel, Abbott's Humira and J&J’s Remicade, according to an RBC Capital analyst.
The President for the Lupus Foundation of America said that Benlysta would be the first lupus-specific treatment. Other treatments have been approved over the last 50 years, but some offer side-effects that are worse than the disease, according to the Foundation.
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