After ratcheting up expectations of a takeover and a hefty premium for stockholders, Biogen Idec pulled the rug out from under investors with its announcement that it will go it alone. The market's retribution was swift. Biogen stock plunged more than 27 percent, dropping $21 of the $75.88 price on Wednesday's close. The fallout was also quick, spreading to Biogen Idec's collaborator, Elan. Elan experienced its worst single-day drop in 18 months, shedding 13 percent of its value as investors took a nanosecond to consider that the Irish company will no longer stand to gain from Biogen's sale. A Biogen buyout would have allowed Elan to acquire all rights to their MS drug, Tysabri. Analysts started speculating that the biotech had found buyout talks tough going, with its collaborations involving Elan and Genentech complicating any talks with Big Pharma. Biogen launched its review after Carl Icahn took a stake in the company and began talking buyout.
- see Biogen's release on the decision
- here's the AP report on the about face
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