They separated the royalty assets from the IP and clinical programs very successfully. Klarman was an investor before the spinoff and later bought a position in the royalty entity PDLI which is still going strong. No one is promoting or touting the opportunties here. No news releases or conferences. After the convertible is settled we may get a little positive info. Thanks to those parsing the filings for sifting through the tea leaves.
screw, Did you participate or follow the Facet spinoff, pdl shareholders got 1 Facet share as a dividend for every 5 shares of pdl held, but all the IP and $405m in cash went into Facet, in your judgement how did that playout in terms of fair value to shareholders?
If I remember correctly, FACET was down to $8 for a while before the sale and below the cash on hand per share, a lot like today's Enzn. The phase II daclizumab was sold for $450m.
Below is the press release for the buyout :
ABBOTT PARK, Ill. and REDWOOD CITY, Calif., March 9, 2010 /PRNewswire via COMTEX/ -- Abbott (NYSE: ABT) and Facet Biotech Corporation (Nasdaq: FACT) announced today a definitive agreement for Abbott to acquire Facet, enhancing Abbott's early- and mid-stage pharmaceutical pipeline. Abbott will acquire Facet for $27 per share in cash for a net transaction value of approximately $450 million, which includes a purchase price of approximately $722 million less Facet's projected cash and marketable securities at closing of approximately $272 million.
The acquisition brings access to biologics in two key therapeutic areas, immunology and oncology. The compounds include daclizumab - a Phase II investigational biologic intended to treat multiple sclerosis (MS) that is expected to move into Phase III development in the second quarter 2010 - and oncology compounds in early- to mid-stage development. Daclizumab is being developed in collaboration with Biogen Idec and certain oncology compounds are being developed in collaboration with other parties.
"This acquisition will further strengthen Abbott's biologics capabilities and pharmaceutical pipeline," said John Leonard, M.D., senior vice president, global pharmaceutical research and development, Abbott. "Daclizumab is a promising treatment for multiple sclerosis, a disease that has a significant unmet medical need, and has the potential to become an important treatment option for patients. We continue to explore multiple mechanisms to treat autoimmune diseases and cancer with both biologic and small molecule approaches."
I think it was the way to go. We are all nonplussed (good word?) with the results of the review here and the market reaction but I think it looks a lot like the model that was done at PDL. There is more value here but no one is promoting it.
I'm thinking the date passes without much upward movement here. It feels bad in the short term but to a group who has gone to work over all the details, I am assuming they gave a lot of thought to how each moving part is handled.