Icagen skyrockets on Pfizer takeover rumors

USA based Icagen (Nasdaq: ICGN) saws its shares leap more than 130% in early trading on speculation the company was a takeover target by global behemoth Pfizer (NYSE: PFE). Pfizer, which is collaborating with Icagen on pain drug candidates and already has a 14% stake in the company under a five-year old accord that could earn the latter as much as $1 billion (The Pharma Letter August 20, 2007).

In response to the filing of a Schedule 13D on Monday by Pfizer in which the drug giant indicates, as part of its ongoing evaluation of the possible extension or other modification of the existing collaboration agreement between the parties, it is evaluating the possibility of entering into a strategic transaction with Icagen, which could have the effect of influencing or changing the control of Icagen by means of a stock or asset acquisition or merger, Icagen acknowledged that it is currently engaged in preliminary discussions with Pfizer regarding a potential strategic transaction.

No definitive agreement has been reached. There can be no assurance that any agreement will be reached or that a transaction will be consummated. Icagen does not plan to make future announcements with respect to this matter unless and until its board of directors has approved a specific transaction or an extension or other modification of the existing collaboration agreement and it has entered into a definitive agreement or the current discussions have terminated.