Is Big Pharma souring on Biogen deal?

Remember last week's rumors that Big Pharma was poised to jump at the chance [1] to bid for Biogen Idec? This week, analysts aren't so sure. Investors are suddenly shying away from the Cambridge, MA-based biotech because word on the street is that a deal may be too rich even for a major drug maker to swallow.

Yesterday, Biogen stock dropped to just over $69 during the day, its lowest point since the company put itself on the block [2] a month ago. Compare that to $84.75 on October 15. What's the problem? Some market observers say potential bidders sell drugs that compete with Biogen's. Others point to Biogen's partnerships with Genentech (for Rituxan [3]) and Elan (for Tysabri) as complicating factors. And news on the Street says some potential bidders--namely Roche [4] and Sanofi-Aventis [5]--have dropped out.

One analyst told the Boston Globe that it all hinges on Tysabri, Biogen's MS drug. If the buyer thinks Tysabri will go platinum [6], then the company doesn't look overpriced. If not, well, then Biogen's the goose that might not lay a golden egg.

- check out this Boston Globe report [7]

Related Articles:
Tysabri: The comeback kid. Report [8]
Sources: Biogen gets bidders, with Pfizer in lead. Report [1]
What's Biogen Idec really worth to Big Pharma? Report [9]
Will Big Pharma buy Biogen Idec? Report [10]
Biogen Idec in play after Icahn makes his move. Report [2]