Biogen and IDEC to merge in $6.78Bn deal

The USA's Biogen is to merge with fellow biotechnology major IDEC in a stock-for-stock deal initiated by the latter valued at $44.82 per share, or around $6.79 billion.

Under the terms of the deal, shareholders in IDEC will gain a slight majority (50.5%) holding of the new entity with Biogen investors owning the remainder. The offer price represents a 2.3% premium over Biogen's closing price on June 20 of $43.80 per share. The deal has been approved by the boards of both companies and is expected to close in the fourth quarter.

The merged company, to be named Biogen IDEC, according to the firms, will be focused on the core therapeutic areas of neurology, rheumatology and dermatology, with a growing emphasis on oncology, autoimmune and inflammatory diseases.