Remember last week's rumors that Big Pharma was poised to jump at the chance 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 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) and Elan (for Tysabri) as complicating factors. And news on the Street says some potential bidders--namely Roche and Sanofi-Aventis--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, 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
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