Business Impact

Biogen Idec ends exploration of a possible sale after failing to attract offers, stock plunges

Dec 12, 2007

Biotechnology company Biogen Idec Inc. said Wednesday it did not receive any definitive buyout offers during a recent strategic review and will remain an independent company.

The stock plunged 26 percent to $55.92 in after-hours trading after closing at $75.88.

The company announced its intention Oct. 12 to explore the possibility of a sale. It already had interest from billionaire investor Carl Icahn. Wall Street speculated that potential buyers could include Pfizer Inc., GlaxoSmithKline PLC, Sanofi-Aventis, and Novartis AG.

”The board (of directors) emphasized that Biogen Idec’s business strategy is working and generating strong operating and financial performance,” the company said in a statement. ”The board noted that it is confident that continued execution of the company’s business plan will result in attractive value for stockholders.”

The company was represented by Goldman Sachs & Co. and Merrill Lynch & Co. throughout the process.