GlaxoSmithKline buys US partner in $3bn deal

GlaxoSmithKline boosted its pipeline of drugs today with a $3bn (€2.44bn) deal for its American partner on a potential blockbuster medicine.

The proposed acquisition of Human Genome Sciences (HGS) means it has secured the full rights for Benlysta, the first new drug to be approved to treat immune system disease lupus in the US for more than 50 years.

It finally gained boardroom support after HGS directors dismissed a previous offer as inadequate and launched an unsuccessful hunt for an alternative buyer.

Buying the biotechnology company will help GSK further bolster its pipeline of new drugs at a time when the pharmaceutical industry is facing large numbers of patent expiries, leaving products open to being copied by rivals.

GSK offered $14.25 per share offer - nearly double the price the shares were trading at before the three-month takeover pursuit - valuing HGS at $3bn.

It hopes to find at least $200m (€163.22m) in synergies by 2015.