Idec Pharmaceutical Corporation and Biogen sign definitive merger deal worth $6.8 bn, will form combined company named Biogen Idec Inc.
With major products Avonex (Biogen) and Rituxan (Idec), the new global biopharma enterprise will focus on cancer and autoimmune diseases. The fusion of Biogen and Idec is seen as a good strategic fit with complementary products, R&D strengths, pipeline development and manufacturing infrastructure.
An important benefit of the merger - the combined company will avoid duplicating resources, in particular a costly infrastructure for manufacturing. Synergies could result in cumulative operating expenditure containment of over $300 million and a capital expenditure saving of over $175 million by 2007.
In the share-swap deal, Biogen shareholders would receive 1.15 Idec shares for each Biogen share. Idec shareholders would own about 50.5% of the combined company.
Idec has a strong franchise in cancer with its Rituxan and a growing focus on autoimmune diseases, while Biogen is strong in the autoimmune area with Avonex and is increasingly developing its capabilities in cancer therapies.
Biogen Idec will have its HQ in Cambridge, MA while retaining centres of excellence in San Diego and Cambridge focused, respectively, on oncology and immunology. Biogen Idec will also have International operations in Europe, Canada, Australia, and Japan.
William Rastetter, Idec’s CEO is to become Executive Chairman while James Mullen, Biogen’s boss will become CEO of the combined Company.
The merger deal has been unanimously approved by the boards of both companies. The transaction is subject to approval by the shareholders of both companies, as well as regulatory approvals and satisfaction of other customary closing conditions.
The merger is expected to be completed by the end of Q3 or early in Q4 of 2003.
Keywords : Idec Pharmaceutical Corp Biogen US M&A Merger deal International Biotech Biopharmaceuticals Cancer therapy Autoimmune disease
