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The accord brings the quantity of Icahn members on the board to 3 and heads off what would've been the 3rd substitute contest waged by Icahn at Biogen in 3 years.Cambridge, Massachusetts-based Biogen, which create the multiple sclerosis drugs Tysabri and Avonex, is among the world's biggest biotech corporations, with 2009 earnings of $4.4 bill.

It makes Tysabri, its most crucial product, in a 50-50 cooperation with Irish drugmaker Elan Company Plc. It also makes the disease drug Rituxan in cooperation with Genentech, a part of Roche Holding AG. Icahn has floated the concept of splitting Biogen into 2 firms -- one concentrated on neurology and one on cancer. But he could also push for a sale.

Biotech stocks, as measured by the NDX Biotech Index .NBI, have risen fifty % during the last year, in part thanks to a series of coalitions and acquisitions as large pharmaceutical corporations attempt to fortify their pipelines of experimental drugs. Reports of the Biogen deal came as a regulatory filing revealed that Icahn had increased his position in computer game publisher Take 2 Interactive Software Inc to 13.7 p.c, worth about $120 million.

In 2007, with a nudge from Icahn, Biogen put itself on sale, nonetheless it failed to discover a customer. Icahn charged Biogen of purposely sabotaged the method by refusing to permit potential bidders to talk with its partners. The next year, the multi-millionaire financier launched an unsuccessful try to place 3 directors on the corporation's board. The next year, financiers voted in 2 of his delegates : Dr. Alexander Denner, handling director of Icahn Partners, and Dr. Richard Mulligan, genetics professor at Harvard Medical institution .

Biogen has agreed to accept Icahn applicant Dr. Eric Rowinsky, a cancer expert, who was a part of the Icahn team -- with Denner and Mulligan -- that took command of biotech company ImClone Systems in 2006.Icahn sold ImClone to Eli Lilly & Corp in 2008 for $6.5 billion. Icahn formerly claimed he would designate 3 folks to Biogen's board this year. Under his agreement with the company, he'll withdraw his designations.Rather than, Icahn Partners will vote its shares for Biogen's nominees, who will include Rowinsky.

The Biogen deal echoes an agreement between biotech company Genzyme Company and activist financier Ralph Whitworth of Relational Backers .Genzyme agreed to designate Whitworth to its board, and in turn Whitworth agreed to support Genzyme's slate of nominees at its yearly meeting. Genzyme's move was designed in part to fortify its defenses against Icahn, who has declared plans to designate 4 members to Genzyme's board.

Biogen also named Dr. Stephen Sherwin to its board. Sherwin is founder and head honcho of neurology-focused biotech company Ceregene Inc.He formerly worked at Genentech in roles that incorporated vice chairman of clinical research.He's currently chairman of the Biotechnology Industry Business. Icahn has agreed to support Sherwin, with Biogen's other nominees : Brian Posner, formerly CEO of ClearBridge aides LLC, and Nancy Leaming, retired Boss of Tufts Health Plan.

Biogen claimed it has briefly increased the quantity of seats on its board to thirteen from twelve Icahn had lobbied the company to restrict the size of its board to twelve. Of the 4 Biogen panel seats up for election this year, one is held by CEO James Mullen, who is ready to retire and won't stand for re-election. Another is held by former Biogen Head honcho Bruce Ross, who also won't stand for re-election.