Idec to Merge with Biogen in $6.8 Billion Deal

In a move to create a global biotechnology industry leader with products and capabilities in cancer and autoimmune disease, Idec Pharmaceutical Corp. (San Diego, CA, USA) has agreed to merge with Biogen, Inc. (Cambridge, MA, USA).

According to the terms of the transaction, Idec will acquire Biogen in an exchange of stock valued at US$6.8 billion, giving each company approximately equal ownership of the merged company. The merged company, to be called Biogen Idec, Inc., will be headquartered in Cambridge (MA, USA). James C. Mullen, chief executive of Biogen will be the chief executive of Biogen Idec.

The two participants said the merger will diversify their product portfolios and revenue bases with two important drugs, Idec's rituximab (Rituxan) for non-Hodgkin's lymphoma and Biogen's interferon beta-1a (Avonex) for multiple sclerosis. The merger is also expected to avoid duplicative and costly infrastructure buildups in manufacturing and administration, resulting in operating expense synergies of more than $300 million and capital expenditures synergies of more than $175 million through 2007.

"Both operationally and culturally, this combination is a perfect fit,” said William H. Rastetter, Ph.D., chairman and CEO of IDEC, who will become executive chairman of Biogen Idec. "The companies' scientists and management teams have known and respected their counterparts for years. This led earlier this year to a collaborative agreement in cancer out of which grew both a closer relationship and the recognition that we each had the strategic pieces that the other was looking for.”




Related Links:
Idec
Biogen