Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of biotech Human Genome Sciences
So what: Glaxo's offer values Human Genome at $13 per share and represents a whopping 81% premium to its Wednesday closing price. However, Human Genome's board rejected the offer as inadequate, fueling investor hopes of an even higher bid.
Now what: Human Genome said it has hired Goldman Sachs and Credit Suisse to help with the exploration of alternative strategies, which includes a possible sale of the company. Of course, the purchase of Human Genome would give Glaxo full rights to their partnered drugs and generate a whopping $200 million in cost synergies within a couple of years, so there's a good chance that Glaxo will indeed pay up to get the deal done. For lucky Human Genome shareholders waking up to today's whopping 100% gain, though, taking at least some dough off the table still seems prudent.
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