Biogen (BIIB) shares are down sharply following Tuesday's rally. The rally in BIIB was sparked by takeover rumors. Reports surfaced that Allergan (AGN) and Merck & Co. are said to be interested in BIIB. The Wall Street Journal’s report also noted that BIIB might not go for a deal. Later in the day, CNBC reported that Allergan is not likely to pursue Biogen. BIIB shares have edged lower in pre-market trading today but Tuesday’s rally helped the stock to cross above $300 for the first time this year. BIIB longs have not had the best time over the past year as the stock has seen a sharp pullback from its early 2015 highs. Despite the 10% gains on Tuesday, BIIB still looks undervalued.