4 Biotech Stocks Beyond Human Genome Sciences To Consider Now
Buyout and takeover news usually rocks the market, and the potential changes concerning Human Genome Sciences (HGSI) and GlaxoSmithKline (GSK) are no exception. Human Genome Sciences rejected the takeover bid, creating a bit of uncertainty for itself. The two companies have worked together in the past and actually have an ongoing relationship in regard to certain drugs. Some believe the offer was rejected because it was too low and Human Genome Sciences expects to get other offers. There is a chance another offer could be made, so many investors have not written off the possibility of a future merger between the two companies.
The offer was for $2.6 billion, or $13 per share. Glaxo believed the offer was fair, but Human Genome Sciences believes it is being undervalued. Experts believe Human Genome Sciences is worth as must as $20 per share and believe it would be possible for the company to get this amount, if it is willing to be patient and play hardball.
It seems that if there were ever going to be a buyout or merger involving Human Genome Sciences, it would certainly be with Glaxo. The company shares profits from its lupus drug Benlysta. The downside of Benlysta is it treats the symptoms of lupus, but it is not a cure for the disease. However, this creates repeat sales — one of the best ways to boost the price of a company. Benlysta is not a big impact drug, but it is a steady earner, prompting long-haul investments. This affects the potential buyout in one simple way:Â To continue reading, click here.