Abbott strengthens pipeline through acquisition of Facet for $722m
Date of publication: July 27, 2010
Abbott laboratories strengthened its pharmaceutical pipeline in immunology and oncology through the acquisition of Facet Biotech for $722 million. See this illustrated on our 2010 M&A Scorecard
This acquisition will enhance Abbotts early and mid stage pharmaceutical pipeline at a cost of $27.00 per share in cash or a total transaction value of $722 million. This figure can be further broken down in to a net transaction value of $450 million with Facet projected cash and marketable securities of $272 million.
The acquisition will now provide Abbott with a number of promising new compounds, including the phase II investigational biologic daclizumab to treat multiple sclerosis.
Abbott has also now acquired the phase II humanised monoclonal antibody for multiple myeloma elotuzumab and the lung cancer monoclonal antibody volociximab.
Daclizumab and volociximab were developed in a global collaboration between Protein Design Labs, now PDL BioPharma and Biogen Idec in 2005 in a deal with a total value over $800 million. The terms of this deal have proved to extremely robust has been amended most recently in January 2010.
Biogen and Facet have continued to work together successfully in spite of the rejection by Facet (a spin out company from PDL Pharma) of Biogen's $17.50 a share acquisition bid in December 2009.
Abbott and Facet's commitment to maximising the full potential of these promising clinical compounds and technologies together with the combination of Abbott's expertise in oncology and immunology with Facets ongoing development of compounds in these areas provides a strong partnership for success.
Tim Martin
July 2010