Abbott to acquire Facet Biotech

Abbott is to acquire Californian-based Facet Biotech in a deal valued at approximately $722m. The move will strengthen Abbott's capabilities in biologics in immunology and oncology.

The acquisition gives Abbott access to daclizumab, a mid-stage biologic being developed in collaboration with Biogen Idec for the treatment of patients with multiple sclerosis. The drug is expected to move into phase III testing in the second quarter of 2010.

Facet's oncology portfolio includes several compounds being developed in collaboration with other partners, and will complement Abbott's own compounds in mid- to late-stage trials, including ABT-263, ABT-888, and ABT-869.

Under the terms of the agreement, Abbott will begin a tender offer to purchase all outstanding shares in Facet Biotech at $27 per share in cash, resulting in a net cost of about $450m. The stock offer represents a 67 per cent premium to Facet's closing share value on Tuesday. In addition, the purchase price includes $272m, representing Facet Biotech's projected cash and securities.

The deal is expected to close in the second quarter of 2010.