Pharma

Could NC biotech Icagen get acquired by Pfizer?

Pfizer (NYSE:PFE) is taking a hard look at acquiring the NC biotech company Icagen (NASDAQ:ICGN) […]

Pfizer (NYSE:PFE) is taking a hard look at acquiring the NC biotech company Icagen (NASDAQ:ICGN) in a move that could bring a slate of pain drug candidates into the pipeline of the world’s largest pharmaceutical company.

Pfizer has disclosed in a regulatory filing that it has started talks with the Durham-based company. Icagen, which is also a Pfizer partner, released a brief statement acknowledging “preliminary discussions with Pfizer regarding a potential strategic transaction.”

But Icagen added that no definitive agreement has been reached and Icagen would have no further comment until either a deal is reached or talks are terminated.

Icagen stock price more than doubled to $5 per share on Friday as investors reacted positively to Pfizer’s interest in the Durham, North Carolina-based company. The price tumbled back to around $2.40 per share and then rebounded again this morning to more than $5.25 per share.

Pfizer and Icagen’s drug development partnership on pain drugs dates to 2007. Icagen’s research focuses on compounds that modulate ion channels, protein structures found in the cells of the human body. Lead drug candidate ICA-105665 opens a channel that has demonstrated a activity in epilepsy and pain.

A successful drug resulting from the collaboration would grant Pfizer exclusive worldwide rights to commercialize it. Icagen stands to receive nearly $360 million in R&D, regulatory and commercialization milestones. The 2007 partnership agreement has been extended twice, once in 2009 and again last September. Under the latest extension, Pfizer has committed to pay $5 million to Icagen this year to pay for R&D work on ICA-105665.

Icagen has had some difficulties. The company disclosed last year that it was running low on cash, a problem that was temporarily resolved with the extension of the Pfizer partnership that brought with it the funding to continue its research.

But the drug candidate has also encountered challenges. The U.S. Food and Drug Administration last year put ICA-105665 trials on a clinical hold due to safety concerns. That hold was released in February. Pfizer’s consideration of an Icagen acquisition suggests that the pharma giant believes Icagen’s drug candidates have made progress and hold promise.

As of April 30, Pfizer owned 14.2 percent of Icagen’s common stock, according to the regulatory filing. Another deal between the two companies wouldn’t necessarily be an acquisition. Pfizer said in the filing that talks could also lead to an extension or an amendment of the current agreement. But if Pfizer buys Icagen, the deal would mean   yet another Research Triangle drug development company snatched up by a pharma giant.

Inspire Pharmaceuticals was acquired for $430 million earlier this year by Merck (NYSE:MRK).

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