Encysive, the beleaguered House-based biotech firm, has found their White Knight – Pfizer for kingly price of $195 million. While that’s not a lot for the purchase of an entire company, Encysive isn’t exactly commanding a premium in the marketplace these days.
The company has been unsuccessfully petitioning the FDA to review the company’s third approvable letter for Thelin. That’s right: third approvable letter. When it became obvious it was hopeless, Encysive excised its executives, including the former CEO Bruce Given.
This is the equivalent of a lottery scratch ticket for Pfizer – small investment, decent chance of return. The $195 million investment is not a substantial one for Pfizer and the payoff will likely happen, as Thelin is already approved in Canada and Europe. (Note: Given the recent divergence of the FDA from global harmonization standards, approval in Europe is no longer a signal the product will get approved in the U.S.). Pfizer will have to do the Phase III trial over and contend with being second to market since the Gilead Sciences/Myogen Letairis already received approval.
The company has been unsuccessfully petitioning the FDA to review the company’s third approvable letter for Thelin. That’s right: third approvable letter. When it became obvious it was hopeless, Encysive excised its executives, including the former CEO Bruce Given.
This is the equivalent of a lottery scratch ticket for Pfizer – small investment, decent chance of return. The $195 million investment is not a substantial one for Pfizer and the payoff will likely happen, as Thelin is already approved in Canada and Europe. (Note: Given the recent divergence of the FDA from global harmonization standards, approval in Europe is no longer a signal the product will get approved in the U.S.). Pfizer will have to do the Phase III trial over and contend with being second to market since the Gilead Sciences/Myogen Letairis already received approval.
A shareholder suit against Encysive was dismissed back in October.