Several reports indicate that GlaxoSmithKline (NYSE: GSK) will buy Human Genome Sciences (NASDAQ: HGSI) for $2.8 billion. The two companies have battled over the price for several months. GSK believes it needs the latest biotech products and research to offset the slow growth a number of big pharma companies have experienced as many of their blockbuster drugs come off patent. To close the transaction, GSK increased its offer to $14 a share from $13. Reuters reports:
“It looks like a great conclusion for Glaxo. At around $14 a share, it is marginally higher than they first pitched but lower than I expected them to have to pay,” said Navid Malik, an industry analyst at Cenkos Securities.
Douglas A. McIntyre