Wednesday 12 December 2018

Bitter pill: Glaxo sheds €6.4bn in value after deal for US firm Tesaro

GlaxoSmithKline CEO Emma Walmsley
GlaxoSmithKline CEO Emma Walmsley

GlaxoSmithKline CEO Emma Walmsley, pictured, has bolstered a thin roster of new treatments by agreeing to buy drugmaker Tesaro for $5.1bn (€4.5bn), gaining a foothold in the field of cancer for a price analysts deemed high.

After announcing a deal to pay $75 a share for Tesaro, about 62pc more than the stock's Friday close in the US, Glaxo saw its stock sink the most since 2008, wiping £5.7bn (€6.4bn ) off its market value.

Tesaro's biggest drug, Zejula, isn't expected to reach $1bn in sales until 2023. Glaxo fell as much as 7.4pc. Tesaro gained as much as 59pc in New York.

Bloomberg

Irish Independent

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