ARTICLE | Finance

Not so fast

Two investors argue that Icagen is selling itself short in Pfizer deal

August 1, 2011 7:00 AM UTC

Merlin Nexus LP and New Leaf Ventures think the 150% premium that Pfizer Inc. (NYSE:PFE) has offered to pay for Icagen Inc. (NASDAQ:ICGN) "dramatically undervalues" the pain company's assets, and sent a letter to its board last week saying so. Together, the two shareholders hold about 12.7% of the biotech.

Under a 2007 deal, Icagen and Pfizer are developing compounds that modulate three specific sodium ion channels for pain and related disorders. The most advanced is PF-05089771, a small molecule inhibitor of Nav 1.7 sodium channel that is in Phase I testing...