Article: Genentech Buys Tysabri Plant For $408M From Biogen Idec.

West Coast Editor

To keep pace with the roaring success of its compounds, Genentech Inc. is buying Biogen Idec Inc.'s 60-acre biologics manufacturing plant in Oceanside, Calif. - the one that had been slated to make ill-fated Tysabri - for $408 million, thus boosting Genentech's drug-making capacity by about 30 percent.

"Given the timing, we like this deal," Christopher Raymond, analyst with Robert W. Baird & Co. in Chicago, wrote in a research note. He maintained an "outperform" rating on South San Francisco-based Genentech, whose stock (NYSE:DNA) closed Friday at $82.47, up 82 cents. Piper Jaffray maintained the same rating.

Biogen Idec's ...

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