BioTech Hostile Takeover: Biogen Plays For Facet

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

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