Canadian Manufacturing

GlaxoSmithKline to spend US$5.1B on cancer drugmaker Tesaro

Glaxo CEO Emma Walmsley said in a statement that the deal will accelerate growth of the British drugmaker's oncology business

December 3, 2018  by The Associated Press

Shares of Tesaro soared early Monday after GlaxoSmithKline said it would pay about US$5.1 billion in cash to buy the cancer drugmaker.

Glaxo plans to pay $75 per share for Tesaro, which makes the ovarian cancer treatment Zejula. That represents a premium of more than 60 per cent to the stock’s $46.38 closing price Friday. The total deal price includes Tesaro’s net debt.

Glaxo CEO Emma Walmsley said in a statement that the deal will accelerate growth of the British drugmaker’s oncology business.

Zejula brought in $166 million in revenue in the first nine months of this year, with third-quarter sales growing more than 60 per cent.

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Glaxo expects the deal to close in the first quarter.

Shares of Waltham, Massachusetts-based Tesaro Inc. jumped nearly 60 per cent to $73.97 in premarket trading.

 


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