BioCentury
ARTICLE | Finance

Ebb & Flow

February 25, 2008 8:00 AM UTC

Encysive (NASDAQ:ENCY) has never disclosed exactly what the FDA doesn't like about the company's Phase III data on Thelin sitaxsentan, which has received three FDA approvable letters for pulmonary arterial hypertension (PAH) despite already being on the market in Europe, Canada and Australia. But Pfizer (NYSE:PFE) obviously thinks it can fix the problem with another trial, which would make it the only company with two PAH products that work via different mechanisms.

The pharma is acquiring Encysive for only $195 million, or $2.35 per share, a 118% premium to the stock's $1.08 close on Tuesday, before the deal was announced...