Icagen agrees to $56 million takeover by Pfizer

USA-based Icagen (Nasdaq: ICGN) saw its shares plunge 23% to $5.96 in premarket trading yesterday on the news that it has entered into a definitive merger agreement with global drugs behemoth Pfizer (NYSE: PFE), which already owns around 11% of the firm, targeting year-end for completion of the deal.

Pfizer will acquire the remaining 8.3 million shares at a price of $6.00 per share. The aggregate transaction value, including the value of the shares currently owned by Pfizer, is about $56 million. Since rumors started last month that the two companies were in talks (The Pharma Letter June 28), Icagen’s shares have rocketed more than 22%. The latter already has a 2007 development alliance with Pfizer, which could have earned a total of $1 billion for the firm.

In 2007, Pfizer and Icagen entered into a worldwide collaboration for the discovery, development and commercialization of compounds that modify three specific sodium ion channels as new potential treatments for pain and related disorders. These sodium ion channels are important in the generation of electrical signals in nerve fibers that mediate the initiation, transmission and sensation of pain. By selectively targeting these sodium channels, the companies are seeking to develop effective treatments for serious pain disorders with fewer side effects.