By Monica Chen
mchen@heraldsun.com; 419-6636
DURHAM -- Biogen Idec Inc. is buying all outstanding shares of California-based Facet Biotech Corp. for $14.50 per share in cash, a purchase estimated at $355 million.
Biogen, a Swiss pharmaceutical company with facilities in Durham's Research Triangle Park, disclosed in a filing with the U.S. Securities and Exchange Commission some details of the proposal as well as the full text of a letter dated Sept. 4 sent to the Board of Directors of Facet.
Biogen's President and CEO James Mullen said that the company believes the transaction makes "compelling business sense for both companies and is in the best interests of their respective shareholders."
The all-cash offer of $14.50 per share is about 64 percent more than the closing price of Facet's common stock on Thursday, Biogen said.
Since 2005, Biogen and Facet have had a collaboration agreement to jointly develop daclizumab, for the treatment of relapsing multiple sclerosis, and volociximab, for the treatment of solid tumors. Facet launched as an independent entity in December 2008 as a spin-off from Nevada-based PDL BioPharma Inc.
"Biogen would own 100 percent of the revenue stream for a product that we believe has the potential to play a significant role in the treatment of multiple sclerosis," said Biogen spokeswoman Jennifer Neiman. "It fits with our broader mission to provide a comprehensive range of care to MS patients."
Esther Alegria, vice president of Manufacturing at Biogen and general manager of the RTP site, did not have immediate information on how the transaction could affect operations in RTP.
Biogen's proposal is not subject to financing contingency or approval by the company's shareholders. The company has asked to meet with the Facet Board.
Biogen's U.S. headquarters are in Cambridge, Mass. With about 800 workers, it is one of RTP's top employers.
Biogen's stock rose $1.10 on Friday to close at $51.01.
