Facet Biotech Has $722M That Says It Pays to Stand Up to Bullies

(MoneyWatch)  Little Facet Biotech (FACT) had to put up with some awfully patronizing statements from Biogen Idec (BIIB) when the big biotech was waging a $438 million hostile takeover attempt last fall. But if anyone's feelings got hurt, Abbott's (ABT) $722 million bid for Facet yesterday probably went a long way toward healing the pain.

It was ironic that things between Facet and Biogen got ugly: the two were partners on two products, and Facet CEO Faheem Hasnain was a former Biogen bigwig. But you wouldn't have known that from some of the comments Biogen president and CEO James Mullen made during the negotiations.

Here's a recap, along with what Facet investors are likely thinking now.

Mullen: Biogen Idec views the acquisition of Facet as desirable but not a "must have."
Facet Investors: On what planet is a package containing a Phase III-ready potential blockbuster multiple sclerosis drug, four clinical-stage cancer drugs, an antibody engineering platform and about $300 million in cash not a must have? Yours apparently, but not Abbott's.

Mullen: We already own a 50% interest in [multiple sclerosis drug] daclizumab...We do not intend to overpay for the rest.
Facet Investors: Considering what Abbott just offered, it doesn't look like you were in any danger of overpaying.

Mullen: If Facet stockholders choose not to accept our offer, they will bear 50% of the risks associated with the development of daclizumab, 100% of the risks associated with Facet's interest in other development stage drugs--
Facet Investors (this actually came from Merriman Curhan Ford analyst Mike King): GASP!! You mean biotech companies LOSE MONEY and shareholders have to TAKE RISK?!?!?

Mullen: If Facet allows our offer to expire without concluding a transaction, we believe the price of Facet stock will decline significantly toward pre-offer levels.
Facet Investors: Actually our stock stayed pretty steady, and now it's up another 67 percent. Guess we've got you to thank for getting the ball rolling.

When I was interviewing Facet CEO Hasnain for my BioWorld article, he mentioned that Abbott was culturally a good fit for Facet and had treated the biotech "very respectfully" throughout the negotiations. Bet that was a nice change.

Want More?

• UPDATED: Facet Sneers at Biogen Idec's Low-Ball Offer...But Investors Might Not
• Why Biogen Idec Is Likely to Flinch Before Facet Biotech in Their Game of Chicken
• Biogen Idec Blinks: Is It Enough for Facet Biotech, or Will the Drama Continue?

Bully photo by Flickr user trix0r, CC.