GlaxoSmithKline agrees fee for Human Genome Sciences takeover

GlaxoSmithKline has agreed to acquire long-term collaborative partner Human Genome Sciences, bringing weeks of negotiations to a close.

The transaction has been valued at around $3.6 billion (2.3 billion pounds) and has been approved by the boards of directors of both companies, with the deal set to deliver various cost synergies for GlaxoSmithKline.

Through this acquisition, GlaxoSmithKline will gain full ownership of a number of collaboratively-developed products and compounds, such as Benlysta, albiglutide and darapladib.

It will allow the company to simplify and optimise research and development, commercial and manufacturing operations to advance these products effectively, while securing the full long-term value of the assets.

Sir Andrew Witty, chief executive officer of GlaxoSmithKline, said: "The transaction meets GlaxoSmithKline's strict financial criteria for acquisitions and we expect will deliver significant returns over the long term."

This comes after the firm announced a takeover of proteomics technology specialist Cellzome earlier this year.