Despite big pharma's growing interest in biotech, it appears no drug maker is willing to pay what was sure to have been a hefty asking price to acquire Biogen Idec. The Cambridge, Mass.-based company announced Dec. 12 that after conducting a review of strategic alternatives, the company will operate independently.

Assisted by Goldman Sachs and Merrill Lynch, Biogen Idec conducted a comprehensive and thorough sale process, the firm said. "At the conclusion of this process, Biogen Idec did not receive any definitive offers to purchase the company."

With more and more drug makers pushing biologics strategies, the price tag for biotech companies and technologies has been growing increasingly high. AstraZeneca raised some eyebrows in the investment community when it offered $15.6 billion to acquire MedImmune in April (¹ Also see "AstraZeneca Accelerates Biologics Strategy With Acquisition Of MedImmune" - Pink Sheet, 23 April, 2007.).

With a market cap of more than $22 billion, Biogen Idec would have certainly been one of the largest acquisitions in the biotech sector. The news that the company - with a portfolio that includes Avonex (interferon beta-1a), Tysabri (natalizumab) and Rituxan (rituximab), as well as an interesting pipeline of multiple sclerosis and cancer drugs - does not have a buyer led the stock to plummet 28.6 percent in after hours trading.

The company, pressured by billionaire investor Carl Icahn, said it was evaluating expressions of interest from third parties in October (² Also see "Biogen Hires Outside Help To Evaluate Acquisition Interest" - Pink Sheet, 12 October, 2007.). The stock shot up on that news, with manufacturers like Pfizer, Johnson & Johnson, Sanofi-Aventis and Roche speculated to be among the potential interested parties.

Biogen Idec will continue to move forward its business plan, which includes having four new products or indications for existing products by year-end 2010, as well as six programs in late-stage clinical development, the company added.

-Jessica Merrill (j.merrill@elsevier.com)

Despite Strategic Review, Biogen Idec To Remain Independent

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