Pfizer to buy Encysive for $195M, gains Thelin

World drug giant Pfizer has entered into an agreement to acquire fellow USA-based Encysive Pharmaceuticals, a publicly-held drugmaker whose pulmonary arterial hypertension drug Thelin (sitaxsentan sodium) is sold throughout much of the European Union. Pfizer said it plans to conduct Phase III trials to secure US approval. Encysive expects full-year 2007 turnover of its oral, once-daily endothelin A receptor antagonist of between $10.5 million and $11.5 million and 2008 sales to reach between $40.0 million and $50.0 million.

Under the terms of the deal, Pfizer will make a cash tender offer for all issued and outstanding shares of Encysive for $2.35 each, representing an equity value of $195.0 million. Following completion of the offer, a unit of Pfizer will merge with Encysive, with the outstanding shares not tendered pursuant to the offer converted into the right to receive the equivalent per share price. Upon acquisition, Pfizer will assume Encysive's change of control repurchase obligations under its 2.5% convertible senior notes. The directors of Encysive have recommended that stockholders accept the deal. The news saw the firm's share price jump 28% to $1.08.