Human Genome Gets Further Takeover Talk

ROCKVILLE, Md. (TheStreet) -- Speculation that Human Genome Sciences (HGSI Quote) would be acquired by GlaxoSmithKline(GSK Quote) continues to push the biotechnology company's shares higher.

Market rumors have the British drugmaker looking to acquire Human Genome for $30 a share. The stock closed Tuesday at $19.21, up 12%, and rose another 1.5% in after-hours trading. It hit a 52-week high of $19.98 during Tuesday's trading session.

Human Genome has collaborated with Glaxo to develop lupus treatment Benlysta and two other products.

Jason Kolbert, an analyst at ThinkEquity, called Glaxo a "natural fit" to buy Human Genome, and he said there was "no doubt" acquisition speculation impacted the U.S. company's stock.

Human Genome is developing a range of drugs to treat hepatitis C, lupus, inhalation anthrax and cancer. The lupus treatment alone could generate sales of $2.3 billion by 2014, according to Kolbert, who calls that a conservative estimate.

Spokespeople at both companies declined to comment on the merger talk.

TheStreet.com's Adam Feuerstein reported in July that talk over Glaxo's possible acquisition of Human Genome would begin because Benlysta showed positive results in a phase III study and because the companies don't have a standstill agreement as part of their Benlysta partnership.

-- Reported by Joseph Woelfel in New York.

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