Pfizer closes first investment in Icagen

Following an announcement relating to the deal earlier this month, Pfizer has this week completed its first closing of investment into Icagen.

The firm finalised its acquisition of 2,688,172 shares of common stock in the firm at the price of $1.68 (0.85 pounds) per share – the closing bid price of the common stock reported at 16:00 Eastern Time on the Nasdaq Global Market.

As a result of this purchase, Icagen has received gross income of $5 million, while the firm has the option to divest a further $10 million of common stock to Pfizer at its fair market value over the next 18 months, subject to terms and conditions.

“After deducting transaction expenses payable by the company, Icagen intends to use the net proceeds from this private placement to fund its research and development programs and otherwise for general corporate purposes,” Icagen reports.

It adds that this purchase agreement was completed following the establishment of a partnership between the firms.

This partnership involves the discovery, development and commercialisation of compounds that modulate three specified sodium ion channels as treatments for pain and other disorders.

Under the terms of the agreement, Icangen can receive up to $359 million for each compound developed as a result of the deal.