|
Meanwhile, GSK's key diabetes drug, Avandia, had been a blockbuster until it was linked to risk of heart attack. That led to sales being banned in the European Union and severely restricted in the U.S. GSK's higher offer followed news of positive results on albiglutide from a study of cardiac safety
-- an issue that's now crucial for winning U.S. approval of many types of new drugs, including for diabetes. Last week, GSK said it planned early next year to apply for approval of albiglutide, which helps control both blood sugar and appetite, helping diabetics lose weight. The drug is in the same class, GLP-1 agonists, as two popular injected diabetes drugs, Byetta and Bydureon. "After a thorough analysis of strategic alternatives, HGS has determined that a combination with GSK is the best course of action for our company and the best way to maximize value for our stockholders," H. Thomas Watkins, president and CEO of HGS, said in a statement. GlaxoSmithKline said it expects the deal to add to core earnings beginning next year and to produce at least $200 million in cost savings by 2015. The company said the deal will not disrupt its current program to repurchase shares worth 2 billion to 2.5 billion pounds, or $3.1 billion to $3.9 billion, in 2012. Earlier this month, GSK agreed to pay the U.S. government $3 billion in fines
-- the largest health care fraud settlement in U.S. history -- for criminal and civil violations involving improperly marketing and concealing the risks of medicines taken by millions of patients, including Avandia. GlaxoSmithKline shares rose 30 cents to close at $45.30 Monday. Human Genome shares jumped 61 cents, or 4.5 percent, to close at $14.19.
[Associated
Press;
Associated Press writer Robert Barr in London contributed to this story.
Linda A. Johnson can be followed at http://twitter.com/LindaJ_onPharma.
Copyright 2012 The Associated
Press. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
News | Sports | Business | Rural Review | Teaching & Learning | Home and Family | Tourism | Obituaries
Community |
Perspectives
|
Law & Courts |
Leisure Time
|
Spiritual Life |
Health & Fitness |
Teen Scene
Calendar
|
Letters to the Editor