Shares of Facet Biotech, a maker of an experimental treatment for multiple sclerosis, have risen more than 11 percent above a proposed bid from Biogen Idec, suggesting investors expect a higher offer. Facet’s board of directors rejected the unsolicited, $356 million bid as “inadequate,” according to a statement today from the California biotechnology company. Biogen offered $14.50 a share Sept. 4. Facet also said it approved a one-year plan giving shareholders the right to buy more stock if Massachusetts-based Biogen pursues a hostile takeover, reports Bloomberg. Biogen, the world’s largest maker of multiple sclerosis medicines, and Facet have been developing daclizumab for the disease since 2005, as well as volociximab for cancer. “We see limited chance the acquisition is completed at $14.50 a share,” said Bret Holley, an Oppenheimer & Co. analyst in New York. “We see a reasonable probability Biogen will raise the offer as Facet is a good strategic fit.” A purchase for less than $20 a share would be “an incremental positive” for Biogen, Holley said.
Facet Soars After Board Rejects Biogen Bid
Biogen, the world’s largest maker of multiple sclerosis medicines, and Facet have been developing daclizumab for the disease since 2005, as well as volociximab for cancer.
September 9, 2009