BioTech Hostile Takeover: Biogen Plays For Facet

Health and Healthcare

Published: September 4, 2009 3:48 pm

Last Updated: September 8, 2009 5:16 am

Facet Biotech Corporation (FACT) confirms that it is in receipt of Biogen Idec Inc.’s (BIIB) letter dated September 4, 2009 offering $14.50 per share for all of the outstanding shares of Facet.

Facet shares rocketed 75% to $15.75 after being halted briefly. So far this year, Facet’s shares have traded as low as $6 and as high as $11, so the deal is at a significant premium.

The deal is hostile. Biogen has asked to meet with the Facet board.

Reuters reports that“Biogen Idec said the offer was lower than an initial offer of $15 per share it had made on Aug. 17 to Facet Chief Executive Officer Faheem Hasnain, followed by a letter from Biogen Idec to Hasnain and Facet’s board on Aug. 21 offering that price.”

A recent deal between Facet and Trubion Pharmaceuticals (TRBN) which Facet believed was in its best interests was not taken well by shareholders who have pushed the stock down.

Biogen and Facet are jointly developing a drug for multiple sclerosis and a treatment for solid tumors.

Facet is low on cash and the company’s management has indicated that it may have to bring in new funds in a year.

Douglas A. McIntyre

For more biotech news visit BioHealthInvestor.com

It’s Your Money, Your Future—Own It (sponsor)

Retirement can be daunting, but it doesn’t need to be.

Imagine having an expert in your corner to help you with your financial goals. Someone to help you determine if you’re ahead, behind, or right on track. With SmartAsset, that’s not just a dream—it’s reality. This free tool connects you with pre-screened financial advisors who work in your best interests. It’s quick, it’s easy, so take the leap today and start planning smarter!

Don’t waste another minute; get started right here and help your retirement dreams become a retirement reality.