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Mergers are continuing, this time GlaxoSmithKline is acquiring the biotech company Praecis Pharmaceuticals for $5.00 per share for a total of $54.8 million in cash.

PharmaLive: GlaxoSmithKline To Acquire Praecis Pharmaceuticals

It is unclear to me if the products and technologies offered by Praecis (at least that is publicly available) are worth this price. They have one candidate PRI-2458 a small molecule that falls into the anti-angeogenesis or formation of blood vessels. It is being investigated for non-Hodgekins Lymphoma and other There are also two technologies; one called DirectSelect that involves selecting compounds from a library for further study. The other technology is
Rel-Ease a drug delivery technology offering sustained release.

While these technologies are interesting, they both fall into categories that are somewhat crowded and it is very difficult determine which may be the best. Maybe GSK sees some specific uses for this technology and it fits their product portfolio.

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