Biogen Idec ups offer 21% for Facet Biotech to $17.50 a share, which is again rejected by board

US biotechnology firm Biogen Idec is continuing its fight to gain control of Facet Biotech, increasing its offer to $17.50 per share in cash, representing a rise of $3.00 per share, or 21%, over its previous bid. Biogen said that this is its 'best and final offer,' but was nevertheless reject by the board of Facet. The offer will expire on December 16.

In its official reaction, the board of Facet recommended that stockholders take no action at this time in response to Biogen's announcement. The two companies work together on the cancer drug candidate volociximab, and the multiple sclerosis drug daclizumab, which is the primary reason for Biogen's interest in its partner.

In its letter to Facet shareholders, Biogen stated: 'We already own a 50% interest in daclizumab, the drug Biogen Idec is jointly developing with Facet for the treatment of relapsing multiple sclerosis (MS). We do not intend to overpay for the rest. If Facet stockholders choose not to accept our offer, they will bear 50% of the risks associated with the development of daclizumab and 100% of the risks associated with Facet's interest in other development stage drugs.'
The letter also said that, 'tendering your shares into this offer will send an unambiguous message to the Facet board: that you, the owners of Facet, want to accept our offer. If Facet allows our offer to expire without concluding a transaction, we believe the price of Facet stock will decline significantly toward pre-offer levels'

It additionally warned: 'Taking into account its monthly cash 'burn rate' and its significant lease obligations, Facet does not have the cash to fund its operations beyond 2012, well before completion of the daclizumab clinical program, without obtaining additional financing, which we believe will be dilutive.'