Biogen Idec exploring sale; Icahn may be suitor

Biotechnology firm Biogen Idec Inc. said Friday that it was exploring a possible sale of the company and that billionaire Carl Icahn, who had recently bought company shares, had expressed interest.

The announcement was made after the close of trading Friday, when Biogen Idec shares reached a record high.

The Cambridge, Mass.-based maker of drugs to treat conditions including multiple sclerosis and arthritis said its board had authorized management to explore a possible sale, although it cautioned that there was no assurance a deal would occur.

Biogen Idec shares rose $2.31 to $69.43 -- just shy of a record close of $69.81 in December 2000. The shares jumped as high as $81.35 in after-hours trading. Friday’s closing price exceeded the 52-week high of $69.

The market capitalization of the company, which was founded in 1978, is just shy of $20 billion.

Biogen Idec said its current business strategy “is working and generating strong operating and financial performance. . . . Nevertheless, to determine whether potential strategic interest on the part of major pharmaceutical companies might result in superior value in the current environment, the board has authorized management to explore interest in a transaction with Biogen Idec.”

The company said that it had received “expressions of interest, including one from investor Carl Icahn,” and that it would not disclose further information until its evaluation was complete.

In August, federal antitrust regulators cleared Icahn to buy a stake in Biogen Idec.

Earlier that month, Icahn had reported purchasing 2.7 million shares of the company as of June 30.

Biogen Idec retained Goldman, Sachs & Co. and Merrill Lynch & Co. to assist in the review of a possible sale.

The company is due to report third-quarter earnings Oct. 23.