What's A Fair Price for Biogen Idec (BIIB) To Trade At?

Biogen Idec (Nasdaq: BIIB) is in free-fall after-hours (-28%), following news the company completed the review of strategic alternatives without a sale.

Investors are disappointed in the fact that the company didn't receive any definitive takeover offers.

Shares of Biogen are currently trading at $54 per share. This is well below today's closing price of $75.88 and the 52-week high of $84.75.

Surprisingly, the stock dropped below the $69.43 price it was trading at before the company announced plans to pursue strategic alternatives (10/12). This could be related to the post-Icahn involvement speculation that drove the stock higher.

When Icahn first disclosed his involvement in the stock, Biogen was trading at $59.45. Could this be a fair price for the stock to trade at? The after-hours knee-jerk reaction suggests 'no', but when things settle out this may be a good price.

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