Biogen’s bid to find a new owner fizzles

Biogen Idec Inc. ended its attempt to auction itself off Wednesday after failing to get any bidders, sending the biotechnology firm’s stock price down nearly 28% in after-hours trading.

Shares of Biogen had been up amid rumors that a deal was imminent and gained 49 cents Wednesday to close at $75.88. But then the Cambridge, Mass.-based company announced the end to the auction and shares plunged below $55 after hours.

“For Biogen, this is very bad. Their fundamental outlook hasn’t gotten any better,” said analyst Chris Raymond at Robert W. Baird. “The stock will get punished and be in the penalty box for some time. They’re still facing the same issues they were facing.”

Biogen, which has been wrestling with slowing growth for its flagship multiple sclerosis drug Avonex, put itself up for sale in October. Analysts had predicted that a winning bid for the company would range from $25 billion to $30 billion.

The auction failed to get much interest as potential suitors had trouble justifying the high price tag at a time of jittery financial markets, sources familiar with the situation have said.

The sale process also was complicated by Biogen’s various drug partnerships, as well as credit market turmoil that has made it more difficult to obtain financing, the sources said.

Biogen, which has a market capitalization of about $22 billion, said it had not received any definitive takeover offers and would continue as an independent firm.

“I would have guessed that there would have been at least a bidder,” said New York-based analyst Eric Schmidt of Cowen and Co. “It’s going to be a bit ugly tomorrow.”