Abbott has acquired antibody expert Facet Biotechnology for $722 million, which includes Facet’s projected cash and marketable securities, capturing for itself the font of immunology and oncology potential Biogen so desired to control before giving up its own spurned bid for Facet last year. The March 9 deal gives Abbott control of daclizumab, a mid-stage biologic intended to treat multiple sclerosis as well as Facet's oncology pipeline, which includes early- and mid-stage compounds for various types of cancer, including multiple myeloma and chronic lymphocytic leukemia.

 

Daclizumab, Facet's lead product candidate, has big potential. For starters, Biogen will owe Facet a $30 million milestone payment as soon as the first patient is enrolled in a late-stage trial of the drug. But if the drug goes on to prove it can reduce inflammatory lesions associated with multiple sclerosis while showing better efficacy and safety than competing drugs, it could go on to realize a substantial slice of the $10.9 billion annual global market for MS treatments, Facet says.

 

After expending significant energy fending off bids for $14.50 and then $17.50 from Biogen starting September 2009, Facet's board was likely relieved to secure Abbott's $27 per share tender offer. Facet had put a poison pill in place just to make sure it would be able to embrace the buyer of its choice.

 

Biogen might have seemed a natural fit for Facet since the two companies have partnerships covering both of its most mature programs, daclizumab and volociximab for solid tumors. But its final bid valued the company at little more than $110 million after taking Facet's cash reserves into account, leaving some observers questioning the fairness of the bid.

 

Facet also has partnerships with Bristol-Myers Squibb on elotuzumab for multiple myeloma and PDL241 for treating immunologic diseases.

 

Abbott's senior VP of global pharmaceutical R&D, John Leonard, says the acquisition will strengthen his company's biologics capabilities and pharmaceutical pipeline.

 

Faheem Hasnain, Facet's president and CEO, says Abbott's expertise in immunology and oncology makes it an excellent match for maximizing the full potential of Facet's programs and technologies.

 

The transaction is expected to close in the second quarter of 2010.