Biogen Idec should split in 2, Icahn says
He seeks units for cancer, neurology
NEW YORK - Carl Icahn asked Biogen Idec Inc.'s board to consider splitting the company into two separate entities, focused on neurology and cancer.
A neurology company made from Cambridge, Mass.-based Biogen Idec, which would include Avonex and Tysabri, as well as experimental drugs like BG-12 and lixivaptan, would have had $2.9 million in sales last year, according to a presentation Icahn filed with the Securities and Exchange Commission yesterday. A cancer company, which would have the drugs Rituxan and Fumaderm, would have had $1.2 million in sales, he said.
Biogen, the world's biggest maker of multiple sclerosis drugs, became embroiled in a battle for control with Icahn in December 2007, when it abandoned a plan to sell itself. Icahn, known for buying into companies he deems undervalued and pushing for change or a sale, lost a proxy fight with the company last June.
"Separating Biogen assets will enhance shareholder value, as management focus should improve and disparate assets appeal to different buyers," Icahn said in the presentation.
