Abbott Labs buy Facet Biotech

Abbott Labs

International pharmaceutical healthcare company Abbott Laboratories has confirmed today that it will acquire Facet Biotech Corp for $27 a share. This equates to a total purchase price of approximately $722 million, which includes $272 million of Facet's cash and securities, resulting in a net figure of $450 million.

With the acquisition, Abbott Labs can bring further attention and access to immunology and oncology - two key therapeutic areas. One key compound included is Daclizumab - a phase II biologic intended to treat multiple sclerosis (MS), with the intention to move to phase III development in the second quarter 2010.

"This acquisition will further strengthen Abbott's biologics capabilities and pharmaceutical pipeline," said John Leonard, M.D., Abbott Labs. "Daclizumab is a promising treatment for multiple sclerosis, a disease that has a significant unmet medical need, and has the potential to become an important treatment option for patients."

Daclizumab is also being developed in collaboration with Biogen Idec, who repeatedly made attempts to buy Facet last year. Its final offer of $17 per share was rejected by the California-based firm's board and investors were not persuaded to tender many shares when the bid went hostile.

However the Abbott offer has been accepted and chief executive Faheem Hasnain said "the transaction provides full and fair value for our stockholders and validates the potential of Facet's clinical and technology assets."

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