PHILADELPHIA, Oct. 29 /PRNewswire-FirstCall/ -- GlaxoSmithKline (NYSE: GSK) (LSE: GSK) and Genelabs Technologies, Inc. (Nasdaq: GNLB) announced today that they have entered into a definitive agreement pursuant to which GSK will acquire Genelabs for approximately $57 million (pounds Sterling 35 million) through a tender offer of $1.30 per share in cash. This strategic acquisition will strengthen GSK's effort to develop and deliver novel therapies against the hepatitis C virus (HCV).
Under the terms of the agreement, a subsidiary of GSK will commence a tender offer to acquire all of the outstanding shares of Genelabs common stock. The board of directors of Genelabs has unanimously recommended that shareholders tender their shares in the offer.
"Genelabs has demonstrated a strong track record in HCV drug discovery and identified numerous novel classes of inhibitors that target unprecedented mechanisms in the virus's life cycle," stated Zhi Hong, SVP of the Infectious Diseases Centre for Excellence in Drug Discovery (ID CEDD) at GSK. "This arrangement, combined with our other collaborations, will give GSK a broad HCV drug discovery platform addressing novel targets and innovative therapeutic approaches."
Genelabs will become part of GSK's Drug Discovery organization and its HCV programs will be consolidated into the broad therapeutic approaches already underway internally and through external collaborations. This acquisition continues GSK's strategy of pursuing the best science, internally or externally, to bring new medicines to patients and value to the GSK pipeline.
Fred Driscoll, President & CEO of Genelabs said, "This transaction
provides our shareholders with certain value at a substantial premium to
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