GSK announces offer for Praecis

GlaxoSmithKline (GSK) has announced that its wholly-owned subsidiary Pilgrim Acquisition, has issued a cash tender offer for the purchase of all the outstanding shares of Praecis Pharmaceuticals for $5 (2.6 pounds) per share, including related preferred stock purchase rights.

The offer is being made in accordance with a merger agreement signed by Praecis Pharmaceuticals, Pilgrim Acquisition and SmithKline Beecham on December 20th 2006.

Praecis Pharmaceuticals is a firm focused on using its own technologies to discover and develop new compounds and improve treatments already available.

“The Praecis board of directors has unanimously determined that the merger agreement, the tender offer and the merger are advisable, fair to and in the best interests of Praecis and the Praecis stockholders,” GSK reports.

It added that the board of Praecis had unanimously recommended that stockholders in the company tender their shares following the offer.

The offer, which is subject to standard conditions, is due to expire at midnight on February 6th 2007, unless it is extended in conformance with Security and Exchanges Committees regulations.

In December, Praecis announced that it was “pleased” with the GSK offer of $54.8 million for the company.

GSK stated that the transaction would complement its drug discovery capabilities through the acquisition of Praecis’ proprietary therapeutic programs, screening and chemical-synthesis technology.