Biogen Idec Inc. (BIIB) announced it has put itself on the block, as shareholder activist Carl Icahn has been buying up shares in the company and received permission in August to buy up even more.
For 2006, the company had a net income of $218 million, while generating $2.68 billion in revenue. In the first six months of this fiscal year, the company has a net income of $317.6 million on $1 billion in revenue.
The company generates its revenue with Rituxan, a non-Hodgkins lymphoma drug, and Tysabri and Avonex, both used to treat multiple sclerosis.
Biogen has enlisted the help of Goldman Sachs & Co. (GS), along with Merril Lynch & Co. (MER) to help them during the process.
Icahn has had some interest in the sector recently, as he is now the chairman of the board at ImClone Systems, after battling it out with the board there, and also has a smaller stake in Enzon Pharmaceuticals Inc. (ENZN).
In April he had a stake in MedImmune which allowed itself to be sold to AstraZeneca, three months after he let it be known he had a 1 percent stake in the company.
Biogen does have some potential for growth with its multiple sclerosis drug Tysabri. It was forced to be withdrawn in 2005 after two trial patients died from a rare brain disorder called PML.
It was reinstated in June 2006, with the stipulation patients had to be carefully monitored for symptoms of the disease.
Currently the board of Biogen said they're confident the company can grow revenue at a 15 percent compounded rate, while growing non-GAAP earnings per share of 20 percent annual compounded growth through 2010.
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