Editor's note: An earlier version of this article was written and edited while trading of shares of Facet was halted. The article has been updated.
I don't know whether the latter will happen, given the circumstances. Facet's management appears uninterested in even talking to Biogen, which says it originally proposed a $15-per-share offering to the board of directors. Biogen subsequently cut the offer, after Facet licensed a phase 1 drug from Trubion Pharmaceuticals
Given Biogen's lowering of the offer price, it seems unlikely the company will turn around and up its bid. Furthermore, because Facet's board seems unwilling to negotiate, a stalemate seems likely here. A second bidder could come in and top Biogen's offer, but that seems unlikely, since Biogen and Facet are partners on its two most advanced drugs, giving Biogen the best knowledge in valuing the company.
Facet, a spinoff of PDL Biopharma
Interestingly Myriad Pharmaceuticals
For better or worse, or until a buyer comes along, drug developers are always valued on their potential to bring drugs to the market. To this Fool, investors were right to believe that Facet and Myraid had a long road ahead. Now, with the offer made public, Facet's investors seem instead to be telling management, "Take it!"