HGSI Rejects GSK Bid ! $HGSI

Human Genome Sciences Inc. (NASDAQ: HGSI) rejected an unsolicited takeover offer from partner GlaxoSmithKline plc (LSE:GSK; NYSE:GSK) for $13 per share, or about $2.6 billion in cash. The price is an 81% premium to Human Genome's close of $7.17 on Wednesday, before the offer was announced. Human Genome, which said the offer did not reflect its "inherent" value, retained Goldman Sachs and Credit Suisse to assist in exploring strategic alternatives, including a potential sale. The biotech also requested additional information on products out-licensed to GSK, including darapladib and albiglutide, which are in Phase III testing to treat coronary heart disease and Type II diabetes, respectively.

Human Genome and GSK originally partnered in 1993 to develop products based on genes identified by the biotech. Last March, the partners launched the first approved product developed under the deal, lupus drug Benlysta belimumab. Human Genome reported 2011 revenue of $131 million, including $52.3 million recognized from sales of Benlysta. The biotech has not provided 2012 sales guidance for Benlysta.

GSK said the acquisition would simplify R&D and commercial operations associated with the partnered programs. The pharma said it would realize at least $200 million in cost synergies by 2015. Skadden, Arps, Slate, Meagher & Flom and DLA Piper are legal counsel for Human Genome. Lazard and Morgan Stanley are advising GSK, and Cleary Gottlieb Steen & Hamilton and Wachtell, Lipton, Rosen & Katz are legal counsel for the pharma. Human Genome was up $7 (98%) to $14.17 on Thursday

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Biotime ($BTX) and subsidiary LifeMap Sciences acquire XenneX

BioTime (NYSE: BTM) and its wholly owned subsidiary LifeMap Sciences announced that they have signed a definitive agreement to acquire XenneX, Inc. through a merger of XenneX into LifeMap Sciences.

• The acquisition is expected to close within thirty days.
• XenneX holds the exclusive, worldwide licenses to market GeneCards and PanDaTox. GeneCards is a searchable, integrated, database of human genes that provides concise genomic, transcriptomic, genetic, proteomic, functional and disease related information, on all known and predicted human genes. PanDaTox is a recently developed, searchable, database that can be used to identify genes and intergenic regions that are unclonable in E. coli, to aid in the discovery of new antibiotics and biotechnologically beneficial functional genes, and to improve the efficiency of metabolic engineering.
• Through the merger, XenneX stockholders will receive approximately 1,362,589 shares of LifeMap common stock, which will represent approximately 13% of the LifeMap common stock outstanding upon the closing of the transaction.
• XenneX shareholders will also receive approximately 448,430 BioTime common shares as part of the transaction

Separately, LifeMap Sciences announced that it anticipates acquiring a license from Yeda to market the new MalaCards database of human diseases. Like GeneCards and PanDaTox, MalaCards has been developed by the Weizmann Institute and is expected to be launched at the end of 2012.

Regenerx Biopharmaceuticals Reports Converting Non-Beating Heart Cells ($RGRX)

RegeneRx (OTCBB: RGRX) is a clinical-stage, biopharmaceutical company engaged in the design, research and development of novel peptides targeted at diseases with unmet medical needs. RegeneRx’s mission is to research and develop novel pharmaceuticals that protect and repair tissue and organ damage caused by disease, trauma or other pathology. RegeneRx acquired the rights to a novel peptide from the NIH in 1999. This intellectual property for Thymosin Beta 4 (Tβ4) allowed the company to direct its focus on tissue protection and repair in multiple disease indications.

Regenerx, in conjunction with Gladstone Institute of Cardiovascular Disease, has published new animal data demonstrating Thymosin beta 4 when used with GMT gene therapy enhanced the conversion of non-beating heart cells into functional, beating heart muscle cells after heart attack.  Data published in the current issue of Nature shows that these experiments were successful in reducing scar tissue and improving heart function when compared to GMT or Tβ4 alone. 

Dr. Deepak Srivastava, a Regenerx scientific advisory board member, commented,

“Our experiments in mice are a proof of concept that we can reprogram non-beating cells directly into fully functional, beating heart cells – offering an innovative and less invasive way to restore heart function after a heart attack.”

Read the full article here.  

Stem Cells to Grow Hair @ ScienceNews.com

Engineering better hair transplants: Cell-based approach to new follicles takes hold in skin

By Rebecca Cheung

Bioengineered follicles can grow hair (as seen on the mouse’s head) when transplanted into normally hairless mice, a new study shows. Takashi Tsuji/Tokyo University of Science

A hair-raising trick may lead to better hair transplants. Engineered hair follicles patched into skin can be coaxed to connect to surrounding tissue and to grow hair in an organized way, a study in mice finds.

Unlike current hair transplant methods, which simply move existing hair follicles from one area of the scalp to another to cover a bald region, the approach would spur the creation of new hair follicles from existing cells.

“It’s exciting because it shows a cell-based approach for treating hair loss is maybe feasible,” says George Cotsarelis, a dermatologist at the University of Pennsylvania in Philadelphia.

See the full story @ ScienceNews.com.

Athersys ($ATHX) announces publication in Cell Transplantation

Athersys announced the publication in the scientific journal, Cell Transplantation, of an article that describes the results of a preclinical study evaluating the administration of MultiStem for the treatment of MPS-I.
• The article, authored by investigators at the University of Minnesota together with scientists from Athersys, describes preclinical study results suggesting that the stem cells could provide benefit to patients suffering from lysosomal storage disorders, such as Hurler's Syndrome.
• The published study demonstrates that an injection of MultiStem cells in neonatal MPS-I mice reduces the accumulation of GAGs in the brain thereby resulting in improvements in behavioral and motor function in the diseased mice.
• The company also announced the issuance of U.S. patent 7,927,587, which covers the use of non-embryonic, multipotent stem cells for the treatment of lysosomal storage diseases.
• The patent applies to Hurler's Syndrome and other lysosomal storage disorders, such as Fabry's disease, Gaucher's disease, Niemann-Pick disease and Batten's disease, among many others.

Brean Murray, Carret on Achillion Pharmaceuticals - $ACHN

Brian Skorney of Brean Murray put out the following on Achillion Pharmaceuticals (ACHN, $7.92, Buy, $20 Target Price):

"Defending ACHN - GS-7977 Data Is Great but ACH-1625 Can Be Head-to-Head Competitive With 7977 or Be the Best Option To Combine With 7977

We believe the sharp decline in ACHN shares is being driven from a superficial read-through from the GILD/BMS data. We believe that a protease inhibitor is not a necessary component of an all-oral regimen. However, we believe that the valuation assumes that a protease inhibitor is also not sufficient in an oral combination that does not include a nuc. Abbott (ABT, $59.27, Hold) has already demonstrated that a potent PI with a differentiated resistance profile can be an anchor for an all-oral regimen. We believe the upcoming oral presentations of Abbott's PILOT (today) and COPILOT (Saturday) studies will reaffirm this thesis.

7977/052 Combo Data Actually Supports ACH-1625 Potential. We believe the high SVR rates seen in the 7977/052 combo, particularly in Gt 2/3 patients, actually supports the potential of ACH-1625 as it indicates that if you have one potent antiviral with a high barrier to resistance, you can get by with a weaker agent with a low barrier to resistance. BMS052 readily selects for resistance and is 10-15x less potent in Gt. 2/3 compared to Gt. 1b. We believe ACH-1625 is one of only four drugs in clinical development that could be effectively substituted for GS-7977 in this combo and show similar results – the others being INX-189, MK-5172, and ABT-450/r. We believe Achillion will successfully run this experiment with its own NS5a inhibitor, ACH-3102, later this year."

JMP Securities issues update on Human Genome ($HGSI)

JMP Securities is a full-service investment bank that provides equity research, institutional brokerage and investment banking services to growth companies and their investors. They issued the following update on HGSI:

Human Genome Sciences, Inc.

HGSI - $7.17, $1,424M market cap

Liisa A. Bayko; +1 312 768-1785; lbayko@jmpsecurities.com

"Let the bidding begin GSK makes a move for Human Genome Sciences (HGSI); reiterate Market Outperform rating and $20 price target for HGSI . This morning, HGSI announced an unsolicited proposal from GSK to acquire HGSI at $13 cash per share. We remind investors that GSK and HGSI share in the profits for Benlysta, and HGSI has up to 30% rights to the drug candidate, darapladib, in an event driven Phase 3 study for coronary heart disease, which we expect to report data within 12 months, as well as a small royalty in abiglutide for diabetes. The launch of Benlysta has gotten off to a slow start but our market research suggests there is a potentially larger market for Benlysta amongst lupus patients for an subcutaneously delivered formulation, which is currently in Phase 3 development. Our price target of $20 is based on a risk adjusted discounted cash flow model based solely on contributions from Benlysta and so there could be significant upside to our model should darapladib have a positive read out in its Phase 3 study. HGSI has rejected the initial offer from GSK and has formerly initiated a process to find higher bidders for the company. In our view, the value proposition to GSK likely trumps those from other companies given the leverage it can gain from HGSI's sales and marketing efforts against Benlysta and potentially Darapladib."

Human Genome ($HGSI) announces rejection of unsolicited offer from Glaxo (GSK) to acquire HGSI for $13/sh cash

Human Genome Sciences (NASDAQ: HGSI) exists to place new therapies into the hands of those battling serious disease.

• HGSI announced that it has received an unsolicited proposal from GSK to acquire HGSI for $13.00 per share in cash.
• The New York Times Deal Book is now saying it has been rejected - SEE NY TIMES DEAL BOOK
• The HGSI board, in consultation with independent financial and legal advisors, has carefully reviewed and considered the GSK offer and has determined that the offer does not reflect the value inherent in HGSI
• HGSI also announced that its board has authorized the exploration of strategic alternatives in the best interests of shareholders, including, but not limited to, a potential sale of the company.
• HGSI has retained Goldman, Sachs & Co. and Credit Suisse Securities (USA) LLC to assist in this process, with Skadden, Arps, Slate, Meagher & Flom LLP and DLA Piper LLP (US) serving as legal counsel.
• GSK has been invited to participate in this process and HGSI has requested additional information regarding investigational products in GSK’s clinical pipeline to which HGS has substantial financial rights, including darapladib, currently in Phase 3 development for the treatment of cardiovascular disease, and albiglutide, currently in Phase 3 development for the treatment of type 2 diabetes.
• There can be no assurance that any transaction will occur or if so on what terms.
• HGSI does not intend to discuss the status of its evaluation unless and until a specific transaction has been approved
• StreetAccount notes there have been a number of rumors over a period of time regarding a potential bid by GSK for HGSI as the two companies are commercialization and development partners in Benlysta

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