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