US biotechnology firm Facet Biotech Corporation (Facet) yesterday rejected the takeover bid from Biogen Idec Inc. (Biogen), a global leader in innovative therapies, terming the offer as ''inadequate''.

The company's board said in a statement released yesterday that the unsolicited proposal from Biogen was reviewed with the assistance of financial and legal advisors, Centerview Partners LLC and Simpson Thacher & Bartlett LLP, respectively, and determined that the $14.50 per share proposal from Biogen is inadequate and not in the best interests of Facet's stockholders.

Last week, Massachusetts-based Biogen, the world's largest maker of medicines for multiple sclerosis–a central nervous system disease which affects coordination–offered $14.50 per share of Facet, which valued the company at $371 million.

Both the drug makers have been partners since 2005 in the development of Daclizumab for multiple sclerosis and Volociximab for tumors.

Facet president and CEO Faheem Hasnain said that the company has made significant progress since its spin-off from PDL Biopharma Inc. last year and its Daclizumab programme has great potential to improve the lives of many patients with multiple sclerosis.

Hasnain further stated, "In our collaboration with Biogen, one of the leaders in the field of multiple sclerosis, we knew there would be a high clinical hurdle for Biogen to take the drug forward into a phase 3 clinical trial. It does not appear to be a coincidence that Biogen made its acquisition proposal within weeks of our joint decision to begin a phase 3 trial following a planned interim futility analysis, and at a time when the significance of this positive development has not been fully appreciated by the investment community."

Facet also announced that in response to Biogen's proposal, its board has adopeted a stockholder rights plan in order to guard against a potential takeover of Facet by any rivals without paying all shareholders full and fair value.

California-based Facet is a biotechnology company dedicated to advancing its four clinical-stage products, identification and development of new oncology drugs and improvement in the clinical performance of protein therapeutics.

Facet's products include Daclizumab for multiple sclerosis and Volociximab for solid tumors (phase 2 clinical) Elotuzumab for multiple myeloma and PDL192 for solid tumors (phase 1 clinical), and PDL241 for immunological diseases (pre-clinical stage).

Few days ago, Facet struck a deal with biopharmaceutical development firm Trubion Pharmaceuticals for the joint worldwide development and commercialisation of TRU-016, a drug for blood cancer. (See: Facet Biotech, Trubion in $196 million cancer drug deal)

Biogen Idec is a leading biotechnological company focusing on drugs for neurological and autoimmune disorders, and cancer. Its portfolio includes Avonex and Tysabri for multiple sclerosis, Rituxan for lymphoma and rheumatoid arthritis, Fumaderm for treatment of psoriasis etc. The company reported revenues of $4.1 billion in 2008.

Further to Facet Biotech's rejection of the offer, its shares jumped 5 per cent at $16.15 yesterday on Nasdaq, while Biogen Idec closed at $51.18, up 0.33 per cent.