Biotech Firm Dismisses GlaxoSmithKline Offer

Rockville,Maryland biotech firm Human Genome Sciences has rejected a 13 dollar a share bid by British pharma titan GlaxoSmithKline,with whom it has a partnership in the promotion of lupus drug Benlysta.The offer is inadequate,the company says in a letter to shareholders,because it doesn't capture HGS' inherent value and growth opportunities.HGS listed one of these opportunities as Benlysta,which is not only a treatment for lupus;but shows promise for treating other autoimmune diseases as well.The initial market opportunity for Benlysta is approximately 7 billion dollars in the U.S. alone,the company says.HGS goes on to cite its robust pipeline of new products as underpinning its future prospects,including cardiovascular drug darapladib and diabetes treatment albiglutide.Its early stage pipeline includes potential cancer,autoimmune and Alzheimer's disease medications as well.Glaxo was opportunistically trying to purchase HGS at a low point of the company's share price,HGS said.The Board has authorized management to seek strategic alternatives such as sale to another party to increase HGS' shareholder value.Human Genome's financial advisors,Credit Suisse and Goldman Sachs,both recommended against accepting the GSK offer as being inadequate. Human Genome Sciences(HGSI),GlaxoSmithKline(GSK)