Biotech OSI Gathers All-Star Defense to Stiff-Arm a Hostile Takeover Bid

As expected, OSI Pharmaceuticals (OSIP) rejected Astellas Pharma's $3.5 billion hostile takeover bid, claiming it undervalues the biotech's interest in blockbuster cancer drug Tarceva and its cash reserves.

While the SEC filings mention that OSI hired Centerview Partners and Lazard to solicit other offers, there's no mention of just how intimidating this investment advisory dynamic duo is in the world of biotech takeovers these days.

Centerview recently defended Facet Biotech (FACT) against a hostile takeover from Biogen Idec (BIIB). In that situation, Biogen and Facet were partnered on the Phase III-ready potential blockbuster multiple sclerosis drug daclizumab. After friendly takeover overtures were rebuffed, Biogen tried to go hostile on Facet for $355 million, later raised to $438 million. Thanks to Centerview, Facet last week got a $722 million offer from Abbott (ABT).

Lazard, meanwhile, represented Astellas in its attempted $1 billion hostile takeover of CV Therapeutics, its partner on the cardiac imaging agent Lexiscan (regadenoson). The deal didn't pan out so well for Astellas -- Gilead Sciences (GILD) swooped in and snared CVT with a $1.4 billion offer. But you can bet Lazard is now uniquely positioned to give OSI the dirt on every move Astellas is planning.

With Centerview and Lazard on board, it seems likely that OSI shareholders will wait to tender their shares until the banks have had a chance to shake the trees for other offers. Because if any other offers exist, these guys will find them. There's also been quite a bit of speculation regarding whether or not Roche AG, OSI's partner on Tarceva, will step in and out-bid Astellas on this deal. But even if Roche doesn't play the white knight, the Facet and CV Therapeutics deals both prove an existing partner isn't the only option when it comes to acquisitions.

Defense photo courtesy of WikiCommons.