UPDATE: JP Morgan Downgrades Human Genome Sciences to Neutral Post GSK Agreement

JP Morgan lowered its rating on Human Genome Sciences

from Overweight to Neutral and reduced its price target from $16 to $14. JP Morgan commented, "We are downgrading HGSI shares to Neutral from Overweight following this morning's announcement that GSK (covered by JPM's European Healthcare analyst James Gordon) and HGSI reached a definitive agreement under which GSK will acquire HGSI for $14.25/sh (~$3.6B, or ~$3B net of cash and debt). We expect the transaction will close at the end of the month (revised tender expires July 27) without any significant issues (the boards of directors of both companies have approved the transaction)and HGSI shares are currently trading close to the takeout price." Human Genome Sciences closed at $14.19 on Monday.