Icahn: Split Biogen into two companies

Carl Icahn just won't leave Biogen Idec alone. According to slides filed with the SEC, the billionaire investor is now calling for Biogen to divide itself into two companies: one focused on neurology and another on cancer.

In Icahn's thinking, the neurology-focused business would market Biogen's MS drugs Avonex an Tysabri, which together brought in $2.93 billion in sales last year. Cancer treatments and Rituxan and Fumaderm--together responsible for $1.17 billion in 2008 sales--would be handled by the second company. "Separating Biogen assets will enhance shareholder value as management focus should improve and disparate assets appeal to different buyers," according Icahn's slide presentation.

"[T]his seems like an 11th-hour tactic by Mr. Icahn to win votes," Biogen spokeswoman Naomi Aoki told the Washington Post. "He has had plenty of opportunity over the course of the past year to make suggestions or engage in discussions about his ideas for the business, and he has not done so until basically right in advance of the shareholder meeting."

Icahn is the midst of his second proxy battle for board representation at Biogen, after losing a previous power play last year. Biogen's shareholder conference is scheduled for June 3.

- see the Washington Post article [1]

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