Replies to post #624 on Human Genome Sciences, Inc (HGSI)

[rarefind]

Exclusive: Celgene mulls Human Genome Sciences bid - source

Fri Jul 6, 2012 7:03pm EDT

(Reuters) - Celgene Corp (CELG.O) is one of two companies discussing whether to bid for Human Genome Sciences Inc (HGSI.O), which seeks an alternative to a hostile offer by British drugmaker GlaxoSmithKline Plc (GSK.L), a source familiar with the situation said.

Conventional wisdom among investors has been that Human Genome was unlikely to find another bidder, as Glaxo reaps 50 percent of the profit from the lupus drug Benlysta, to which Glaxo and Human Genome share the rights.

Human Genome has so far refused Glaxo's $13 per share, or $2.6 billion offer as too low and Wall Street analysts (surveyed by Reuters in May) had predicted that bid would need to be raised to about $15 per share to succeed.

According to a source familiar with the situation, two companies are in discussions with Human Genome, aside from Glaxo, with Celgene probably in the pole position should it decide to bid.

The source, who spoke on condition of anonymity because the person was not authorized to speak to the media, did not identify the second bidder but said it would most likely be a merger-of-equals scenario. The deadline for bids is July 16.

A Celgene spokesman declined to comment on the company's acquisition-related activity. Representatives for Human Genome were not immediately available for comment.