For Immediate Release
Chicago, IL – October 20, 2009 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Biogen Idec Inc. (BIIB), Facet Biotech Corporation (FACT), Trubion Pharmaceuticals (TRBN), Bristol-Myers Squibb (BMY) and Acorda Therapeutics (ACOR).
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Here are highlights from Monday’s AnalystBlog:
Biogen Extends Hostile Bid
Biogen Idec Inc. (BIIB) extended its tender offer for the acquisition of all of the outstanding shares of Facet Biotech Corporation (FACT) to December 16, 2009. The offer was previously set to expire on October 19, 2009. As of October 15, 2009, about 28,336 shares of Facet Biotech stock have been tendered.
Earlier this month, Facet’s board of directors unanimously recommended that its stockholders should reject Biogen’s tender offer under which the company is seeking to acquire for $14.50 per share in cash. The board determined that the offer is inadequate and not in the best interests of the stockholders.
As a reminder, Biogen launched a hostile bid in September to acquire Facet by taking its offer directly to Facet’s shareholders. The deal is valued at approximately $356 million. Biogen had initially approached Facet with an offer of $15 per share on August 17, 2009. However, Facet did not accept the offer as the company doubted its benefit for its shareholders. Soon thereafter, Facet entered into a collaboration with Trubion Pharmaceuticals (TRBN), a move that was criticized by Biogen.
According to Biogen, the Trubion deal led to a reduction in Facet’s value with the company’s stock price reducing by 22% since the announcement of the deal. Based on Facet’s reduced value, Biogen came back with a reduced offer price of $14.50 per share.
Biogen and Facet have been working together since 2005 on the development of daclizumab for the treatment of relapsing multiple sclerosis and volociximab (M200) aimed at solid tumors. Besides these two candidates, Facet has three other candidates in its pipeline, one of which is being developed in collaboration with Bristol-Myers Squibb (BMY).
The acquisition of Facet would help Biogen boost its pipeline. Moreover, the company would not be required to make any milestone payments related to the development of daclizumab and volociximab. Under the terms of the collaborative agreement, Biogen is required to make certain development and commercialization milestone payments upon the achievement of certain program objectives totaling up to $660 million over the life of the agreement.
The proposed acquisition of Facet is the second major deal announced by Biogen in 2009. Earlier this year, the company signed a licensing deal with Acorda Therapeutics (ACOR) for a multiple sclerosis candidate. We currently have a Neutral rating on Biogen.
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