Eric Thayer | Bloomberg | Getty Images
A scientist mixes chemicals inside the lab at the GlaxoSmithKline Plc facility in Collegeville, Pennsylvania.
Tesaro shares surged 58 percent Monday after GlaxoSmithKline agreed to buy the cancer treatment company for $75 per share, or about $5.1 billion.
The deal represents a more than 60 percent premium over Tesaro’s closing cost on Friday of $46.38 per share. GlaxoSmithKline’s stock was 8.2 percent lower Monday.
“The acquisition of Tesaro will strengthen our pharmaceuticals business by accelerating the build of our oncology pipeline as well as also commercial footprint, along with providing access to completely new scientific capabilities,” GlaxoSmithKline CEO Emma Walmsley said in a statement.
Bloomberg reported last month of which Tesaro was exploring the opportunity of a sale. Tesaro’s shares have suffered losses after the item shared disappointing results on Nov. 9 for treatment of modest-cell lung cancer.
The deal announced Monday was unanimously approved by Tesaro’s board. GlaxoSmithKline expects the deal to close inside the first quarter of 2019.