Facet Biotech rejects Biogen Idec offer, sets shareholder rights plan

By Lisa Kerner

Charlotte, N.C., Sept. 8 - Facet Biotech Corp. turned down Biogen Idec Inc.'s offer to acquire the company's outstanding shares for $14.50 each in cash.

According to a Facet news release, Biogen's offer price does not attribute any value to the drug daclizumab, which Facet and Biogen are jointly developing for the treatment of multiple sclerosis.

"In our collaboration with Biogen Idec, one of the leaders in the field of MS, we knew there would be a high clinical hurdle for Biogen Idec to take the drug forward into a phase 3 clinical trial," said Facet president and chief executive officer Faheem Hasnain in a news release.

"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," Hasnain said.

The offer also does not take into account Facet's operating and other assets, including its product pipeline.

Biogen president and CEO James C. Mullen disagreed in a statement released on Tuesday.

"The price we are offering ascribes meaningful and appropriate value to the company's clinical programs while taking into account Facet's significant building lease and other obligations, and recently announced collaboration agreement with Trubion [Pharmaceuticals, Inc.]," said Mullen.

Biogen said its proposal is not subject to any financing contingency or approval by Biogen shareholders. The offer is a 64% premium over Facet's closing price of $8.82 on Sept. 3, according to Biogen.

In August, Facet, a Redwood City, Calif., biotechnology company, rejected Biogen's $15.00 per share offer.

Rights plan adopted

Facet adopted a stockholder rights plan with a one-year term in response to Biogen's latest offer.

Each stockholder of record at the close of business on Sept. 21 will receive a dividend of one right to purchase a fraction of a share of a new series of preferred stock for each share of Facet stock held on that date.

The rights are triggered, according to Facet, if a person or group acquires, or begins a tender offer for, 15% or more of Facet's common stock without board approval.

Current owners of 15% or more of Facet's common stock will not become acquiring persons under the plan unless they increase their holdings by more than 1% of Facet's outstanding shares, a Facet news release said.

Biogen Idec is a Cambridge, Mass.-based pharmaceutical company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.