GlaxoSmithKline (NYSE: GSK) just made a major coup, scooping up biotechnology company Human Genome for $3 billion.
It took three months for the deal to be approved by both parties, after Human Genome rejected GSK’s original offer. But it was well worth the wait, considering GSK now gets the rights to a new drug for lupus, along with experimental treatments for diabetes and heart disease.
As Milena Izmirlieva, Senior Manager at IHS Global Insight, says, “Obviously they’ve struggled for a while to make this happen. But it’s something that will certainly boost their pipeline. It will reduce the company’s exposure to the risk of having to pay substantial milestones in royalty payments in future.”