Bidding for Biogen Idec Could Begin in Early November, Report Says

Biogen Idec, which has put itself up for sale under pressure from activist investor Carl Icahn, could receive its initial bids for the company in the first 10 days of November, the Financial Times reported today. Pfizer (NYSE:[[ticker:PFE]]) and Novartis (NYSE:[[ticker:NVS]]) are reportedly the two leading contenders to purchase the pioneering Cambridge biotech, according to the publication.

“Confidentiality agreements have been signed, noted people familiar with the situation, with parties readying themselves for a bidding process that could potentially end up being a two horse race between Pfizer and Novartis,” the FT reported. One hangup in the process, the publication added, was that Biogen has not yet turned over its books to potential bidders, making it hard to appraise the company’s situation and come up with a valuation. “If we don’t know the color of the cat, it is difficult to buy something you don’t know,” the FT quoted an unnamed source as saying.

The account was entirely based on unnamed sources. It noted, however, as we have also reported, that even with bids coming in, a final sale could be a long ways off. One complicating factor is that Biogen (NASDAQ:[[ticker:BIIB]]) shares rights to both its multiple sclerosis drug Tysabri and its cancer drug Rituxan with other firms—Elan (NYSE:[[ticker:ELN]]) and Genentech (NYSE:[[ticker:DNA]]), respectively. A change in control of Biogen reportedly gives its partners the ability to purchase the rest of the rights to the shared drugs—a provision that could significantly impact a potential sale.

Author: Robert Buderi

Bob is Xconomy's founder and chairman. He is one of the country's foremost journalists covering business and technology. As a noted author and magazine editor, he is a sought-after commentator on innovation and global competitiveness. Before taking his most recent position as a research fellow in MIT's Center for International Studies, Bob served as Editor in Chief of MIT's Technology Review, then a 10-times-a-year publication with a circulation of 315,000. Bob led the magazine to numerous editorial and design awards and oversaw its expansion into three foreign editions, electronic newsletters, and highly successful conferences. As BusinessWeek's technology editor, he shared in the 1992 National Magazine Award for The Quality Imperative. Bob is the author of four books about technology and innovation. Naval Innovation for the 21st Century (2013) is a post-Cold War account of the Office of Naval Research. Guanxi (2006) focuses on Microsoft's Beijing research lab as a metaphor for global competitiveness. Engines of Tomorrow (2000) describes the evolution of corporate research. The Invention That Changed the World (1996) covered a secret lab at MIT during WWII. Bob served on the Council on Competitiveness-sponsored National Innovation Initiative and is an advisor to the Draper Prize Nominating Committee. He has been a regular guest of CNBC's Strategy Session and has spoken about innovation at many venues, including the Business Council, Amazon, eBay, Google, IBM, and Microsoft.