Bank of America Likes GlaxoSmithKline's HGSI Tender Offer

In a research report published this morning, Bank of America is pleased with GlaxoSmithKline's

offer of $13 per share for Human Genome Sciences

. According to Bank of America, "In our view, the deal continues to make sense. GSK is already partnered on a number of assets namely Benlysta (Lupus, marketed); Albiglutide (PIII GLP-1 analogue for diabetes); Darapladib ( PIII LpPLA2 inhibitor for atheroslerosis) and Rilapladib (PII LpPLA2 inhibitor for Alzhiemer's). We believe the deal offers scope to remove inefficiencies in the JV structures yielding c3% out-year EPS accretion and 4p-51p of NPV accretion depending on pipeline success. We do not expect GSK to raise the offer to value-destructive levels given lack of a natural alternative bidder and its strict IRR criteria for bolt-on M&A." Bank of America maintains its Buy rating and $55.12 PO on GlaxoSmithKline, which closed yesterday at $46.57.