Facet Biotech Rejects Biogen's Offer, will there be a counteroffer?

These articles were posted recently about Facet Biotech. Things are looking strong for their future. Especially if they can afford to reject Biogen's offer. I don't know how this will pan out. I expect Biogen should make a counter offer soon but after that anything can happen. However, if they don't make this counteroffer, I am unsure of the stock's future as it went up on speculation alone. Human Genome Science experienced this earlier, however it was over false Glaxo takeover rumors. I expect Biogen to make a counteroffer but not that much more.

This is a nice article from the SF Biz Journal: Biotech spinoff Facet starts life $400M richer

Forbes.com: Biogen Idec backs $356M offer for Facet Biotech
Associated Press, 09.08.09, 04:57 PM EDT

NEW YORK -- Biogen Idec Inc. backed its $356 million buyout offer for Facet Biotech Tuesday afternoon, hours after Facet turned Biogen Idec down.

The Cambridge, Mass.-based company said its offer for Facet, which totals $14.50 per share, is "extremely attractive" and fairly values Facet's pipeline of drug candidates. Biogen Idec ( BIIB - news - people ) made its bid late Friday, and Tuesday morning, Facet said it undervalued the company.

Facet shares closed at $8.82 before Biogen made its unsolicited offer. But the stock finished up 5 percent at $16.15 on Tuesday, which suggests investors are expecting a sweeter offer.

Facet, based in Redwood City, Calif., has been working with Biogen for the last four years on a pair of drugs: volociximab for cancer, and daclizumab for multiple sclerosis.

Biogen shares closed up 17 cents at $51.18.

Facet rejects Biogen's $356M bid, shares rise
Headed into the long weekend last Friday, Biogen Idec unveiled a $356 million bid to buy Facet Biotech, which had already turned a cold shoulder to an earlier, and higher, offer last August. And early this morning Facet fired off a quick rejection, saying the offer is too low. Investors drawn to the showdown quickly lifted Facet's shares above Biogen's offer.

Biogen, which is partnered with Facet on two key development programs, offered Facet shareholders $14.50 a share--a 64 percent premium on Thursday's close. Back in mid-August Biogen was willing to pay $15 a share, but the big Boston biotech company felt that Facet's recent collaboration deal with Trubion--involving a $20 million upfront and a $10 million equity stake--shaved some value from the company.

Analysts don't expect a deal to go through at this price. Biogen Idec is offering slightly more for Facet than it holds in cash. There's also an added bonus for Biogen Idec if it can make a deal stick. Merrill Lynch notes that a deal would waive a $30 million milestone Biogen owes Facet.

Facet Biotech and Trubion Pharmaceuticals Inc. (TRBN) Announce Worldwide Collaboration for the Development and Commercialization

Facet Biotech and Trubion Pharmaceuticals Inc. (TRBN) Announce Worldwide Collaboration for the Development and Commercialization of TRU-016 in Deal Worth up to $196.5 Million

REDWOOD CITY, Calif. and SEATTLE, Wash., Aug. 28 /PRNewswire-FirstCall/ -- Facet Biotech Corporation (Nasdaq: FACT - News) and Trubion Pharmaceuticals, Inc. (Nasdaq: TRBN - News) today announced an agreement for the joint worldwide development and commercialization of TRU-016, a product candidate in phase 1 clinical development for chronic lymphocytic leukemia (CLL).

TRU-016 is a CD37-directed Small Modular ImmunoPharmaceutical (SMIP(TM)) protein therapeutic. The collaboration agreement includes TRU-016 in all indications and all other CD37-directed protein therapeutics.

"TRU-016 is a promising therapeutic with impressive preclinical and preliminary clinical data for CLL that will greatly enhance our pipeline and support a key strategic objective, which is to build a robust oncology portfolio," said Faheem Hasnain, president and CEO of Facet Biotech. "After a thorough evaluation of a number of programs over the past several months, we concluded that TRU-016 was a particularly compelling program and a great fit with our pipeline and expertise. While the novel approach to protein therapeutics is supported by a solid biological rationale and validated clinical data in CLL, TRU-016 may have broad utility in additional indications, including non-Hodgkin's lymphoma and multiple sclerosis. Through this collaboration, we can leverage and extend our significant expertise in the research and development of protein therapeutics and we look forward to playing a key role in advancing this important program with our partners at Trubion."

"In considering alliance opportunities for TRU-016 we sought to retain meaningful economics in this exciting first-in-class product candidate, while enabling aggressive joint development with a partner who shared our vision and brought complementary experience and resources to the alliance," said Peter Thompson, M.D., FACP, president, CEO and chairman of Trubion. "We are delighted to have Facet as our partner. Coupled with our own strengths in the discovery and development of novel protein therapeutics, their expertise will afford us the opportunity to pursue the clinical development and commercialization of TRU-016 and other CD37-directed therapeutics in the most aggressive manner possible."

Under the terms of the collaboration agreement, Trubion will receive an upfront payment of $20 million and may receive up to $176.5 million in additional contingent payments upon the achievement of certain development, regulatory and sales milestones. The companies will share equally the costs of all development, commercialization and promotional activities and all global operating profits. In addition, Facet will purchase 2,243,649 shares of newly issued Trubion common stock for an aggregate purchase price of $10 million.

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