German researchers publish full Neanderthal genome

BERLIN (AP) — Researchers in Germany said Tuesday they have completed the first high-quality sequencing of a Neanderthal genome and are making it freely available online for other scientists to study.

The genome produced from remains of a toe bone found in a Siberian cave is far more detailed than a previous "draft" Neanderthal genome sequenced three years ago by the same team at the Max Planck Institute for Evolutionary Anthropology in Leipzig, Germany.

"This allows even the small differences between the copies of genes that this Neanderthal individual inherited from its mother and father to be distinguished," the institute said in a statement.

The team led by geneticist Svante Paabo now hopes to compare the new genome sequence to that of other Neanderthals, as well as to that of a Denisovan — another extinct human species whose genome was previously extracted from remains found in the same Siberian cave.

"We will gain insights into many aspects of the history of both Neanderthals and Denisovans and refine our knowledge about the genetic changes that occurred in the genomes of modern humans after they parted ways with the ancestors of Neanderthals and Denisovans," Paabo said. The group plans to publish a scientific paper on the issue later this year.

In the meantime, the genome sequence is being made freely available so scientists elsewhere can conduct research on it, he said.

The announcement was welcomed by other researchers.

Wil Roebroeks, an archaeologist at Leiden University in the Netherlands who wasn't involved in the Leipzig study, said it was "exciting times" for comparative studies of humans and our closest extinct relatives.

By combining findings from genetics with studies of early diets, technology and physical anthropology of different human species, scientists would likely yield new insights into our evolutionary past soon, he said.

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Online:

Neanderthal genome: http://www.eva.mpg.de/neandertal/

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Researchers publish improved Neanderthal genome

BERLIN (AP) — Researchers in Germany said Tuesday they have completed the first high-quality sequencing of a Neanderthal genome and are making it freely available online for other scientists to study.

The genome produced from remains of a toe bone found in a Siberian cave is far more detailed than a previous "draft" Neanderthal genome sequenced three years ago by the same team at the Max Planck Institute for Evolutionary Anthropology in Leipzig, Germany.

"The genome of a Neanderthal is now there in a form as accurate as that of any person walking the streets today," Svante Paabo, a geneticist who led the research, told The Associated Press in an email.

Richard G. Klein, a paleoanthropologist at Stanford University in California who was not involved in the study, said it was "a monumental achievement that no one would have thought possible 10 or perhaps even five years ago."

The Leipzig team has already been able to determine which genes the Neanderthal inherited from its mother and which from its father. It now hopes to compare the new genome sequence to that of other Neanderthals, modern humans and Denisovans — another extinct human species whose genome was previously extracted from remains found in the same Siberian cave.

"We will gain insights into many aspects of the history of both Neanderthals and Denisovans, and refine our knowledge about the genetic changes that occurred in the genomes of modern humans after they parted ways with the ancestors of Neanderthals and Denisovans," Paabo said.

Klein said the comparisons might allow scientists to determine what makes our species unique and explain why we survive and others didn't.

Paabo's group plans to publish a scientific paper later this year.

In the meantime, the genome sequence is being made freely available so scientists elsewhere can conduct research on it, he said.

The announcement was welcomed by other researchers.

Wil Roebroeks, an archaeologist at Leiden University in the Netherlands who wasn't involved in the Leipzig study, said it was "exciting times" for comparative studies of humans and our closest extinct relatives.

By combining findings from genetics with studies of early diets, technology and physical anthropology of different human species, scientists would likely yield new insights into our evolutionary past soon, he said.

___

Online:

Neanderthal genome: http://www.eva.mpg.de/neandertal/

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GSK further extends $2.6 billion Human Genome offer

LONDON (Reuters) - GlaxoSmithKline has again extended its $2.6 billion (1.7 billion pounds) offer to buy long-time partner Human Genome Sciences in a hostile stand-off with the U.S. biotech.

The offer - now extended until July 20 - remains pitched at $13 per share.

The decision by Britain's biggest drugmaker to push back the closing date comes as no surprise, since Human Genome effectively extended the battle two weeks ago by setting a July 16 deadline for definitive takeover offers.

In the wake of the GSK extension, Human Genome repeated its rejection of the offer as not reflecting the inherent value of the company.

Buying Human Genome would give GSK the full rights to drugs on which the two companies collaborate.

GSK said on Friday it remained willing to talk to Human Genome, adding: "Extension of the tender offer to 20 July will provide HGS shareholders the opportunity to evaluate the outcome of the HGS board's process relative to GSK's offer.

"Based on circumstances at that time, GSK will consider all available options regarding its offer but can make no assurance that the tender offer will be further extended."

The only company to have made an offer, GSK has consistently refused to participate in the auction process being run by Human Genome's advisers Goldman Sachs and Credit Suisse .

Human Genome says it has had contact with other companies, but bankers say GSK has a big advantage over rivals because of its partnerships around key drugs.

The two companies together sell Benlysta, a new drug for the autoimmune condition lupus, and collaborate on two other experimental drugs for diabetes and heart disease that could become significant sellers.

GSK and Human Genome share rights to Benlysta, while GSK owns the majority of the commercial upside to the other products.

GSK's tender had been due to expire at 9 p.m on June 29. It was first extended on June 8 after GSK secured less than 1 percent of the biotech group's stock in an initial tender round. The latest extension expires on July 20 at 9 p.m.

(Additional reporting by Ben Hirschler; Editing by Matthew Tostevin and David Hulmes)

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Human Genome unlikely to attract a higher bid - BMO

(Reuters) - There is a high risk of GlaxoSmithKline dropping its pursuit of Human Genome Sciences Inc , BMO Capital Partners said, adding that a rival bid for the biotechnology company also seemed unlikely.

The brokerage, which downgraded Human Genome stock to "market perform" from "outperform", said chances of the company attracting a better price were low as negotiations with Glaxo have become more "adversarial."

On Wednesday, Glaxo said it would proceed with its $2.6 billion offer only if the U.S. biotech firm removes a poison pill adopted on May 17.

"Human Genome's decision to enact a one-year shareholder rights plan suggests that a competitive process is unlikely to produce an alternate offer in the near term," BMO's Jim Birchenough said.

Glaxo and Human Genome together sell Benlysta, a new drug for the autoimmune condition known as lupus. They are also collaborating on two other experimental drugs for diabetes and heart disease, currently in late-stage trials, that could become significant sellers.

Birchenough said it would be hard for Glaxo or any other buyer to quote a higher price since a hike would have to be justified on the basis of a higher valuation for Human Genome's late-stage heart drug, and not the currently marketed lupus drug.

BMO's Birchenough, who cut his price target on Human Genome to $13 from $17, pointed to flat Benlysta sales trends as a reason for the limited upside to Glaxo's $13-per-share offer.

Glaxo chief Andrew Witty has already played down the possibility of increasing the offer price and said his company was the only obvious owner for Human Genome.

Human Genome shares, which have nearly doubled in value since GSK made its bid in April, were up 1 percent at $13.69 on Thursday on the Nasdaq.

(Reporting by Vidya P L Nathan in Bangalore; Editing by Sreejiraj Eluvangal)

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GSK to drop Human Genome bid if "poison pill" stands

LONDON (Reuters) - GlaxoSmithKline said it would not proceed with its $2.6 billion offer for Human Genome Sciences unless the U.S. biotechnology company dropped a "poison pill" shareholder rights plan imposed to block the deal.

Human Genome adopted the stockholder rights plan earlier this month in an attempt to ward off GSK in what is becoming an increasingly acrimonious battle between the companies that together sell new Lupus drug Benlysta.

The British company is taking its $13-a-share offer direct to investors after Human Genome's board said it was inadequate.

The plan allows shareholders to buy additional shares at a discount if one investor buys or launches a tender offer for more than 15 percent of the group's stock without the board's approval, effectively blocking an unwanted bidder.

"Because Human Genome has adopted a poison pill, GSK has added a condition to its offer requiring Human Genome to redeem the pill or, alternatively, GSK being satisfied in its reasonable judgment that the pill has been invalidated or is otherwise inapplicable to GSK's acquisition of Human Genome," GSK said in a statement on Wednesday.

Human Genome, an early pioneer of gene-based drug discovery, had said the rights plan would allow it to complete a strategic review.

Analyst Navid Malik at Cenkos Securities said Human Genome had taken an aggressive approach.

"It is certainly not going to endear GSK towards upping their offer in my view; it increases the risk of them just walking away, and I don't think there is a white knight that can offer a meaningfully higher offer for the shares," he said.

GSK said its tender offer was still scheduled to expire at 12:00 midnight New York time on June 7.

GSK's shares were down 1.4 percent at 1,396.5 pence at 10:29 a.m. EDT (1429 GMT), while Human Genome's shares were down 1.5 percent at $13.78.

(Reporting by Sarah Young and Paul Sandle; Editing by Will Waterman)

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GSK pounces on Human Genome with $2.6 billion bid

LONDON (Reuters) - Human Genome Sciences has rejected an unsolicited bid worth around $2.6 billion from long-time partner GlaxoSmithKline, marking a new takeover battle in a drugs sector recently swept by M&A activity.

The U.S. pioneer of gene-based drug discovery, which sells a new drug for lupus with GSK, said on Thursday the offer of $13 per share, made in a letter on April 11, did not reflect the value inherent in the company.

It has hired Goldman Sachs and Credit Suisse to help explore strategic alternatives, including a possible sale. GSK has been invited to participate in that process.

The Rockville, Maryland-based firm was formed 20 years ago with the mission to isolate genes and identify their function in order to develop new drugs. Over the years it has had a rollercoaster ride as hopes for its drugs have waxed and waned.

GSK's offer represents an 81 percent premium to its closing stock price of $7.17 on Wednesday. However, that is still well below the $30 touched a year ago and investors are hoping for more, with the shares doubling to $14.20 by 1930 GMT.

Britain's biggest drugmaker said the rebuff was disappointing as its offer would give investors "immediate and certain value" superior to what Human Genome could achieve as a standalone company.

GSK chief executive Andrew Witty wrote to Human Genome boss Tom Watkins on April 11 setting out the proposal, saying he was prepared to commence a cash tender offer with no financing or due diligence condition.

Buying Human Genome would give GSK full rights to partnered drugs, which include not only Benlysta - the first new drug for lupus in half a century - but also promising experimental drugs for heart disease and diabetes.

Many drugmakers are seeking to do deals to bolster their pipelines, as older products go off patent, and GSK's readiness to buy Human Genome is a sign of confidence in the drugs that the companies have been developing together.

GSK also expects $200 million in cost synergies by 2015, with the acquisition boosting earnings from 2013.

"WHITE KNIGHT" UNLIKELY

Cowen & Co analyst Eric Schmidt said GSK was likely to seal a deal in the end.

"The 81 percent premium versus yesterday's close is a big number, and I'm sure GSK is likely to pay a little bit more to get the deal done. I think it's very likely to be sold to GSK at around $15 or so a share," Schmidt said.

"I doubt anyone else will come in. It's going to be hard for another company to pay that sort of a premium not having the inside scoop on Benlysta or on anything else these two companies are collaborating on."

Tim Anderson of Bernstein said outside interest in Human Genome's drugs was possible but any other non-GSK acquirer would only get partial control, which could deter bidders.

Barclays analysts also see no "white knight" counter-bidder on the horizon, even though the deals between GSK and Human Genome have no tricky change-of-control clauses.

GSK has long been rumoured as a potential acquirer of Human Genome, since it has been in partnership with the firm since 1993 and is already collaborating on a number of medicines.

Still, the decision to pull the trigger on a takeover attempt may surprise some investors because GSK management has tended not to buy out partners it is working with in the past.

BEYOND BENLYSTA

Analysts said GSK clearly saw value beyond Benlysta.

The two companies are also collaborating on a high-profile experimental heart drug called darapladib, which is in Phase III development, and albiglutide for diabetes, which could be filed for approval late this year or early in 2013.

Mark Clark, an analyst at Deutsche Bank, said darapladib was the biggest ticket pipeline opportunity, with up to $10 billion annual sales potential, although researchers will not know if it actually works until key trial results in 2013 or 2014.

Benlysta, which is subject to a 50:50 profit share deal between the two companies, has got off to a slow start but is still seen as having potential sales of $2.15 billion by 2016, according to consensus forecasts from Thomson Reuters Pharma. A year or so ago investors had been hoping for $3-4 billion.

Despite disappointment about Benlysta sales to date, investors are likely to be emboldened in thinking they can get a better price for their Human Genome shares by recent developments that show Big Pharma's hunger for biotech assets.

Only on Wednesday, Illumina Inc saw off a $6.8 billion bid from Roche Holding AG.

Roche, too, chose to make an unsolicited offer after Illumina shares had fallen back and Sanofi SA took the same approach in its successful acquisition of Genzyme for $20.1 billion last year.

Human Genome said it had asked for more information from GSK about progress with the experimental drugs the two companies have worked on together, including darapladib and albiglutide.

GSK, which is being advised by Lazard and Morgan Stanley, said the plan to acquire Human Genome would not affect its intention to repurchase between 1 billion and 2 billion pounds ($1.6-3.2 billion) in shares in 2012.

Shares in the British-based drugmaker rose nearly 1 percent. ($1 = 0.6238 British pounds)

(Additional reporting by Sophie Sassard, with Lewis Krauskopf and Paritosh Bansal in New York; Editing by David Cowell and Gunna Dickson)

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Battle against lice may be aided by new genome study

By Randolph E. Schmid, Associated PressWASHINGTON — Sometimes scientific research can be a lousy job. Literally.In their quest to understand how life works, researchers reported Monday they have sequenced the genome of the human body louse.

That's right, those annoying little suckers that live on human blood and place their eggs in clothing.

From a practical standpoint, the findings could lead to better ways to eliminate this parasite, which can carry diseases to people, according to the researchers who were led by Ewen F. Kirkness of the J. Craig Venter Institute in Rockville, Md. and Barry R. Pittendrigh of the University of Illinois, Urbana.

For its digestion, the human body louse relies on a specific type of bacteria, which is not resistant to antibiotics. So finding a way to get drugs to the bacteria might kill the lice too. Knowing more about lice may also lead to new types of repellent.

The louse genome is small and contains relatively few genes related to light reception or reacting to odors and tastes, the study found.

The researchers said it appears that the human body louse evolved from the human head louse about the time people started wearing clothes, offering lice another place to hide.

In addition, they noted that the human louse and the Chimpanzee louse evolved from a common ancestor between 5 million and 7 million years ago.

It's been more than an annoyance ever since, potentially carrying typhus, relapsing fever and trench fever.

"Beyond its importance in the context of human health, the body louse genome is of considerable importance to understanding insect evolution," said May R. Berenbaum, head of the entomology department at the University of Illinois, in a statement.

The genome sequencing effort involved researchers at 28 institutions in the U.S., Europe, Australia and South Korea.

Copyright 2010 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. Guidelines: You share in the USA TODAY community, so please keep your comments smart and civil. Don't attack other readers personally, and keep your language decent. Use the "Report Abuse" button to make a difference. Read more.

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Battle against lice may be aided by new genome study

By Randolph E. Schmid, Associated PressWASHINGTON — Sometimes scientific research can be a lousy job. Literally.In their quest to understand how life works, researchers reported Monday they have sequenced the genome of the human body louse.

That's right, those annoying little suckers that live on human blood and place their eggs in clothing.

From a practical standpoint, the findings could lead to better ways to eliminate this parasite, which can carry diseases to people, according to the researchers who were led by Ewen F. Kirkness of the J. Craig Venter Institute in Rockville, Md. and Barry R. Pittendrigh of the University of Illinois, Urbana.

For its digestion, the human body louse relies on a specific type of bacteria, which is not resistant to antibiotics. So finding a way to get drugs to the bacteria might kill the lice too. Knowing more about lice may also lead to new types of repellent.

The louse genome is small and contains relatively few genes related to light reception or reacting to odors and tastes, the study found.

The researchers said it appears that the human body louse evolved from the human head louse about the time people started wearing clothes, offering lice another place to hide.

In addition, they noted that the human louse and the Chimpanzee louse evolved from a common ancestor between 5 million and 7 million years ago.

It's been more than an annoyance ever since, potentially carrying typhus, relapsing fever and trench fever.

"Beyond its importance in the context of human health, the body louse genome is of considerable importance to understanding insect evolution," said May R. Berenbaum, head of the entomology department at the University of Illinois, in a statement.

The genome sequencing effort involved researchers at 28 institutions in the U.S., Europe, Australia and South Korea.

Copyright 2010 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. Guidelines: You share in the USA TODAY community, so please keep your comments smart and civil. Don't attack other readers personally, and keep your language decent. Use the "Report Abuse" button to make a difference. Read more.

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