Drug and medical products company Abbott Laboratories said Tuesday it will buy Facet Biotech Corp. for about $450 million in cash, expanding the company's access to biotechnology drugs, including a potential treatment for multiple sclerosis.
Facet and its partner Biogen Idec plan to move the potential multiple sclerosis drug daclizumab into late-stage development in the second quarter. Facet also has potential cancer treatments in various stages of development with other partners.
Abbott will pay $27 per share, marking a 67 percent premium to Facet's closing price of $16.21 Tuesday. Both companies' boards of directors have already approved the deal, which is expected to close in the second quarter.
Abbott, based in North Chicago, Illinois, valued the transaction at about $722 million, less Facet's projected cash and marketable securities at closing of approximately $272 million.
The deal will not affect Abbott's prior profit guidance for 2010, the company said, but it will likely prompt a one-time charge. Centerview Partners was the financial adviser to Facet, which is based in Redwood City, California.
The deal follows last December's rejection by Facet shareholders of a bid worth $17.50 per share for the company by Biogen Idec.
Shares of Abbott fell 35 cents to $54.45 in after-hours trading after gaining 38 cents to close at $54.80 during the regular trading session.
Facet Biotech shares soared to $27.11, up 67 percent from their closing price. Over the past year the stock has traded between $5.86 and $18.35.