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Glaxo agrees to buy cancer-drug maker Tesaro for £4b
[LONDON] GlaxoSmithKline Plc agreed to buy Tesaro Inc for £4 billion (S$7.01 billion), in a move by Chief Executive Officer Emma Walmsley to revitalize the UK drugmaker's cancer drug pipeline.
The offer price of US$75 a share is about 62 per cent higher than the stock's Friday close in the US. Tesaro is down 44 per cent so far this year.
Tesaro's Zejula gives Glaxo a PARP inhibitor, a treatment for ovarian cancer in the same realm as rival AstraZeneca Plc's Lynparza, which brought in US$297 million for Astra last year. Glaxo believes the drug holds opportunity in other areas, according to a statement.
Walmsley gained cash for making potential deals earlier Monday, agreeing to shed the company's Indian food unit and other assets in Asia in a US$3.8 billion deal with Unilever.
Glaxo fell as much as 2.9 per cent in London, the most since June. Tesaro's shares fell to a four-year low on Nov 9, after the company shared results from a clinical trial at a conference that showed only a handful of patients responded to an experimental cancer drug cocktail.