By Ben Hirschler
LONDON (Reuters) - Human Genome Sciences Inc said on Thursday it had rejected an unsolicited bid worth around $2.6 billion from long-time partner GlaxoSmithKline Plc, marking a new takeover battle in a drugs sector that has been swept by M&A recently.
Human Genome said it did not believe the offer of $13 a share in cash reflected the value inherent in the company. It has hired Goldman Sachs and Credit Suisse to assist with the exploration of strategic alternatives.
With 198.5 million shares in issue, the bid would value Human Genome at around $2.6 billion. The stock closed on Wednesday at $7.16.
A spokeswoman for GSK, Britain's biggest drugmaker, said the company would issue a statement shortly.
GSK has long been rumored a potential acquirer of Human Genome, since the two companies already collaborate on a number of medicines, including Benlysta, the first new treatment for lupus in half a century.
They are also working on an experimental heart drug called darapladib, in Phase III development, that analysts believe could be a multibillion-dollar-a-year seller - although it is also viewed as relatively high risk.
Many drugmakers are seeking to do deals to bolster their pipelines of new medicines at a time when old products are going off patent. Buying Human Genome would give GSK full economic benefits of those medicines it currently partners with the U.S. firm and is a sign of confidence on their commercial potential.
Human Genome said it was ready to consider a sale of the company as one strategic option and that GSK had been invited to participate in the process.
It has asked for more information from GSK about progress with the experimental drugs the two companies have worked on together, including darapladib and diabetes treatment albiglutide.
(Reporting by Ben Hirschler; Editing by David Holmes)
