Essay Title: 

Mergers, Acquisitions & LBO – IDEC Pharmaceuticals / Biogen Inc.

March 17, 2016 | Author: | Posted in mathematics and economics, trade


2005 Biogen – IDEC Merger


Performing Mergers and acquisitions are like using blades with two sharp edges . A proper use of the tool would bring the combined company a better future . Nevertheless , being careless and sloppy in using the tool could cause us our `lives . A study stated that over 60 of all merged companies ended up with lower share prices and values within their corporations compare to before the merger . Combining two or more different companies are not simply matters of math and accounting calculation . Fragile [banner_entry_middle]

issues needed attention to ensure that the merger results value creation instead of value destruction . Financial benefits are often overvalued and become deceiving for managers , in many case of M A . A study indicated that the largest problems within M A are strategic and cultural issues . Employees and middle level managers tend to be left out in many merger plans , causing decreasing morale and performance

A good M A undertaking is the ones involving consideration of every aspect of corporate existence . Corporate market position , strategy culture and traditions , are important aspects needed to be considered Within this study , I am discussing the merger of Biogen Inc . and IDEC Pharmaceuticals in June 2003 to from the third largest biotech corporation in the world , Biogen IDEC Inc . It was known to be the largest M A undertaking in the Biotech industry since Amgen agreed to buy Immunex for 10 billion in December 2001

The elaboration would include discussion of prior-merger condition of both companies , the rationale of the merger , how the merger was performed and what the merger has resulted so far Biogen Prior to Merger

II .1 History Background

The company , Biogen NV , was established when a group of the most accomplished biologists in the world gathers to discuss formation of a new pharmaceutical company . The meeting was held in 1978 , in Geneva Switzerland . Two years after the company was founded , one of Biogen ‘s founders , Walter Gilbert Ph .D receives the Nobel Prize for one of his researches in sequencing nucleotides (`History , 2005

In 1983 , the company was registered as a NASDAQ traded firm under the symbol BGEN . Biogen ‘s first originally developed product enters the market in 1986 . The product was for treatment of hairy cell leukemia . In 1989 , the company launches Engerix -B (a vaccine for Hepatitis B ) in the United States . One of Biogen ‘s trademark product , AVONEX was approved by the FDA and EMEA for sales and marketing in the United States and Europe in 1996 . Another famous product of Biogen , the AMEVIVE (for treatment of severe chronic plaque psoriasis ) and its specialized manufacturing facility was approved by the FDA later in 2003 (`History , 2005 II .2 Products

As a pharmaceutical company , most of the company ‘s operations are concerning research and development of their medical products . Their leading products are the AVONEX and AMEVIVE . AVONEX is designed to treat Multiple Sclerosis (MS ) patients . It is the market leader and is being prescribed to treat over… [banner_entry_footer]

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