Abbott Laboratories announced late Tuesday that they had agreed to buy Facet Biotech for net price of $ 450 million in cash, in a move aimed at expanding the drug pipeline, including treatments for multiple sclerosis.
Under the terms of the deal, Abbott will pay $ 27 for every facet biotech share, a 67 percent premium above the closing price of biotech facet $ 16.21 on Tuesday. Facet biotech stocks jumped slightly above the offer after hours trading Abbott, earn $ 10.89, or 67.2 percent, to $ 27.10, in a sign that investors are hoping for higher bids.
In December, facet biotech rejected an unsolicited offer of $ 17.50 per share of Biogen IDEC, the partners in the development of drugs to treat multiple sclerosis daclizumab, saying the offer undervalued the company. Biogen IDEC did not immediately comment on Abbott bid.
Abbott says that the total purchase price of approximately $ 722 million, but this amount includes approximately $ 272 million in cash projections and biotech facet of securities it will receive at closing.
"This acquisition will further strengthen the ability of biological and pharmaceutical pipeline Abbott," John Leonard, Abbott's Senior Vice President for global pharmaceutical research and development, said in a statement. "Daclizumab is a promising treatment for multiple sclerosis, a disease that has a significant unmet medical needs, and have the potential to become an important treatment option for patients."
Facet biotech show that he feels justified in rejecting the offer of Biogen IDEC last year. "We believe this transaction provides a full and fair value for our shareholders and validate the potential of Facet's clinical and technology assets," Faheem Goddess, facet biotech president and chief executive, said in a statement.
Under the terms of the deal, Abbott will pay $ 27 for every facet biotech share, a 67 percent premium above the closing price of biotech facet $ 16.21 on Tuesday. Facet biotech stocks jumped slightly above the offer after hours trading Abbott, earn $ 10.89, or 67.2 percent, to $ 27.10, in a sign that investors are hoping for higher bids.
In December, facet biotech rejected an unsolicited offer of $ 17.50 per share of Biogen IDEC, the partners in the development of drugs to treat multiple sclerosis daclizumab, saying the offer undervalued the company. Biogen IDEC did not immediately comment on Abbott bid.
Abbott says that the total purchase price of approximately $ 722 million, but this amount includes approximately $ 272 million in cash projections and biotech facet of securities it will receive at closing.
"This acquisition will further strengthen the ability of biological and pharmaceutical pipeline Abbott," John Leonard, Abbott's Senior Vice President for global pharmaceutical research and development, said in a statement. "Daclizumab is a promising treatment for multiple sclerosis, a disease that has a significant unmet medical needs, and have the potential to become an important treatment option for patients."
Facet biotech show that he feels justified in rejecting the offer of Biogen IDEC last year. "We believe this transaction provides a full and fair value for our shareholders and validate the potential of Facet's clinical and technology assets," Faheem Goddess, facet biotech president and chief executive, said in a statement.