catbird

Does Icahn's Involvement Affect Share Price in the Long Run?

The key to biotechs like Biogen is to develope and have a pipeline for new blockbuster drugs. When Biogen had to take Tysabri off the market after three deaths, management sensitively steered the right course and convinced regulators to let it be reintroduced with strict warnings and monitoring. With the support of users who had been benefiting from "T" and suffered because of its withdrawal, Biogen has regained most of the drop in stock price in recent days. Icahn has been a blessing in drawing attention to the stock, and a curse by interfering with mngmt by pushing them to put the company up for sale much as he unsuccessfully did with Yahoo. Biotech companies exist and thrive because of their trade secrets, patents, and research genius ideas.

The company obliged Icahn in inviting bids, but no pharmaceutical or biotech stepped up to pay the premium for a buyout.

Now the higher earnings and prospects just announced are rewarded by a nice bump up.

If Icahn's involved in BIIB had a big part in the stock move since he first announced, I'll say, "Thanks, Carl" even though I'm not on a first name basis with him.