As expected, the board at Facet Biotech Corp has rejected a $355 million hostile bid by partner Biogen Idec, dismissing it as inadequate.

The Redwood City, California-based company's directors have unanimously recommended that shareholders reject an unsolicited tender offer of $14.50 per share, following discussions with its financial and legal advisors, saying it is not in the best interests of Facet's stockholders. Chief executive Faheem Hasnain said that Biogen’s offer is substantially lower than our company's current market value” and is “primarily funded by our own cash and marketable and investment securities”.

He added that the Biogen bid “attributes insufficient value to the attractive pipeline and assets of the company, including daclizumab”, a late-stage multiple sclerosis drug being developed with the US biotechnology major. However Mr Hasnain said the board will still “remain open to appropriate opportunities” to creating value “for all of our stockholders”.

Biogen had a $15 per share bid rejected in August but Facet then linked up with Trubion Pharmaceuticals to develop the latter’s TRU-016, which is in Phase I for chronic lymphocytic leukaemia. The Trubion deal lowers the value of Facet, Biogen had claimed, and so it made the hostile $14.50 bid last month.

Biogen, which itself has been linked as a takeover target by Johnson & Johnson in the past week, has yet to respond to Facet’s dismissal of the offer that is due to expire on October 19.