Boston: Pfizer Inc said on Wednesday it has agreed to acquire Icagen Inc, which is developing drugs to treat pain and related disorders.
Pfizer already owns about 11% of Icagen. It will acquire the remaining 8.3 million shares for $6 each, for a total transaction value of $56 million.
In 2007, Pfizer and Icagen entered an agreement to develop and commercialize pain and other drugs.
Last month Icagen’s shares jumped after Pfizer said it was considering a strategic transaction with Icagen. Icagen’s shares rose on Tuesday to a year high of $8.40 before closing at $7.75.
At least one analyst had expected the deal value to potentially reach $100 million.
Icagen is developing a pain drug and also an epilepsy drug, which was temporarily put on clinical hold due to an adverse event. The hold was lifted earlier this year.
The companies expect to close the deal before the end of the year.