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Facet Biotech Calls Biogen Offer Too Low

Tue, 09/08/2009 - 4:33am
NEW YORK (AP) — Facet Biotech Corp. on Tuesday turned down a $356 million buyout offer from drug development partner Biogen Idec Inc., saying it doesn't properly value the company and its developing products. On Friday, Cambridge, Mass.-based Biogen said it would pay $14.50 per share for Redwood City, Calif.-based Facet. The companies have been working together since 2005 to develop the cancer drug candidate volociximab and the multiple sclerosis drug daclizumab. Facet shares closed at $8.82 Thursday, making Biogen's bid a 64.4 percent premium. Biogen was sharply critical of Facet when it made the offer, saying it stated its interest in August and offered to buy the company for $15 per share on Aug. 21. A week after that, Facet announced a collaboration with Trubion on a leukemia drug. "In our collaboration with Biogen Idec, one of the leaders in the field of multiple sclerosis, we knew there would be a high clinical hurdle for Biogen Idec to take the drug (daclizumab) forward into a phase 3 clinical trial," said Facet president and CEO Faheem Hasnain in a statement. "It does not appear to be a coincidence that Biogen Idec made its acquisition proposal within weeks of our joint decision to begin a phase 3 trial following a planned interim futility analysis, and at a time when the significance of this positive development has not been fully appreciated by the investment community." Facet has also developed a "stockholder rights plan", which is meant to guard against a takeover of the company.
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