Merger-watch fans, listen up. The Financial Times is reporting some tantalizing details about the bidding for Biogen Idec, the biotech based in Cambridge, MA [1], that sent stock analysts into an uproar [2] when it put itself up for sale a few weeks ago. Unnamed sources told the London newspaper that the sequence of events leading to that surprise announcement actually began with Pfizer offering $80 per share for the company. Investor Carl Icahn (photo [3]) then made a counter-offer [4], and the company retained financial advisors to conduct an orderly sale. Even now, Pfizer remains one of the front-runners [5] for Biogen, the sources said, along with Merck and Johnson & Johnson.

Some other buyers have already dropped out of the race, spooked by the "nosebleed prices" expected. Icahn offered $23 billion, so the winning bid is likely to be higher. Are Biogen's assets worth that much [6]? They include the multiple sclerosis drug Tysabri [7], in partnership with Elan; the lymphoma and arthritis remedy Rituxan [8], in collaboration with Genentech [9]; and the MS drug Avonex, which is wholly owns. It also has a pipeline of drugs in development, including two promising MS products.

Meanwhile, headhunters are getting calls from Biogen types expecting a sale to lead to the layoff ax. The non-executive staff is anxious, recruiters said, even though the company continues to hire new workers.

- check out the buyout report [10] from the Financial Times
- read about Biogen staff seeking shelter [11] at Inside Recruiting

Related Articles:
Biotech stocks surge as investors anticipate buyouts. Report [12]
Speculation soars over Pfizer's interest in biotech. Report [13]
What's Biogen Idec really worth to Big Pharma? Report [14]
Will Big Pharma buy Biogen Idec? Report [15]
Biogen Idec in play after Icahn makes his move. Report [16]
Who should Pfizer buy? Report [17]