Human Genome Most Lucrative on Record Biotech Premiums

Drug companies are in such need of the latest experimental therapies to replace medicines losing patent protection that even a 68 percent takeover premium for Human Genome Sciences Inc. isn’t enough.

Acquirers have been willing to pay 71 percent more than a biotechnology company’s average 20-day stock price in deals greater than $500 million this year, the highest average premium since at least 2000, according to data compiled by Bloomberg. After rejecting GlaxoSmithKline Plc’s $13-a-share bid and starting a sale process last week, Human Genome closed 12 percent above the offer yesterday as traders wager it will secure the steepest price increase of any pending U.S. deal.