GlaxoSmithKline to spend $5.1B on cancer drugmaker Tesaro

Posted: Updated:

By The Associated Press

Shares of Tesaro soared Monday after GlaxoSmithKline said it would pay about $5.1 billion in cash to buy the cancer drugmaker.

Glaxo plans to pay $75 per share for Tesaro, which makes the ovarian cancer treatment Zejula. That represents a premium of more than 60 percent to the stock's $46.38 closing price Friday. The total deal price includes Tesaro's net debt.

Glaxo CEO Emma Walmsley said in a statement that the deal will accelerate growth of the British drugmaker's oncology business.

Zejula brought in $166 million in revenue in the first nine months of this year, with third-quarter sales growing more than 60 percent.

Glaxo expects the deal to close in the first quarter.

Shares of Waltham, Massachusetts-based Tesaro Inc. jumped nearly 59 percent to $73.60 in morning trading.

Copyright 2018 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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