PHARMACEUTICAL company GlaxoSmithKline (GSK) yesterday announced that it is to buy US biotech company Praecis.

GSK, which employs about 1,100 at its plant in Barnard Castle, has offered $54.8m for the company.

The move is Europe's biggest drug maker GSK's second acquisition this month, after buying antibody specialist Domantis for £230m.

Allen Oliff, senior vice-president of GSK's molecular discovery research, said it was a significant move for the company.

He said: "Praecis has created novel therapeutic programs and innovative chemical synthesis and screening technology that will complement our own discovery capabilities."

The acquisition has been approved by GSK and by the board of directors of Praecis. The buyout is expected to be tendered early next month. The sale is expected to be completed before the end of the first quarter next year.