The growing power of biotech
Biogen IdecÂ appears to be ready to demonstrate the ever-growing market power of biologics. The report late Friday that the company is exploring its options as Carl IcahnÂ appears anxious to expand his footprint in biotechnology may well demonstrate how much a successful biotech company is worth. The bidding would appear to start at $23 billion in this case. And if Wall Street deal makers can get some big pharma companies to join in the bidding, that could end up looking cheap.
It's all good for biotech. As yet another biotech pulled its IPO last week, it's clear that the big money in the field will come from individuals and corporations who understand the value of these new therapeutics. It's also another indication that biotechnology is maturing as an industry. Buyouts at this level demonstrate just how high the stakes can be in drug development. - John Carroll