Shareholder rights firm Robbins Umeda LLP has commenced an investigation into possible breaches of fiduciary duty and other violations of the law by members of the board of directors of Human Genome Sciences (NASDAQ: HGSI) in connection with their efforts to sell the company to GlaxoSmithKline plc (NYSE: GSK). Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Gregory E. Del Gaizo at (800) 350-6003, firstname.lastname@example.org, or via the shareholder information form on the firm's website.
On July 16, 2012, Human Genome Sciences announced that it had entered into a definitive merger agreement to be acquired by GlaxoSmithKline. According to the terms of the deal, GlaxoSmithKline will acquire all outstanding shares of the company through an all-cash transaction. Pursuant to the agreement, Human Genome Sciences shareholders will receive $14.25 in cash for each share of the company they own.
Robbins Umeda LLP's investigation focuses on whether the Board at Human Genome Sciences is undertaking a fair process to obtain maximum value and adequately compensate shareholders in light of the company's recent positive financial results. On April 24, 2012, the company reported strong operating results for the first quarter of fiscal year 2012. Human Genome Sciences reported revenue of $47.1 million for quarter, a 77.1% increase over the $26.6 million in net revenue reported during the same quarter of the previous year. Additionally, Human Genome Sciences reported that net sales of the new lupus drug BENLYSTA reached $31.2 million for the first quarter of 2012, a 21.4% increase over the $25.7 million in net sales reported in the first quarter of fiscal year 2011. In the words of David P. Southwell, the Chief Financial Officer of Human Genome Sciences, the company "continues to have a strong financial position. BENLYSTA will continue to be our company's most important driver of growth for the next several years."
Furthermore, several leading market analysts have released target prices for Human Genome Sciences that value the company's stock between $15.00 and $23.00 per share, considerably higher than the value currently being offered by GlaxoSmithKline as part of the proposed transaction. Given the company's impressive financial results, recent target prices and the growing commercial success of BENLYSTA, Robbins Umeda LLP is examining the board's decision to sell Human Genome Sciences now at $14.25 per share rather than allow shareholders to continue to participate in the company's continued success and future growth prospects.
Robbins Umeda LLP is a nationally recognized leader in securities litigation and shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested. For more information, please go to http://www.robbinsumeda.com.
Press release link: http://www.robbinsumeda.com/shareholders-rights-blog/human-genome-sciences-inc/
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