Today, Pfizer Inc.(NYSE: PFE) announced a cash tender offer to Encysive Pharmaceuticals, Inc. (NASDAQ: ENCY) for $2.35 per share for all issued and outstanding shares. Interestingly enough, this represents a 118% premium based on Monday's market close price of $1.08.
The equity value of the transaction is $195 million. As a result of the acquisition, Pfizer will acquire the rights to THELIN, a treatment for pulmonary arterial hypertension,or PAH, in pre Phase III trials in the United States. Encysive had been under a strategic review since summer of 2000 and this one got clipped harshly last summer on a declined approval.
Kudos go out to Collins Stewart research and analysis. They recently raised their rating on this one to a BUY rating.
Jon Ogg is a partner and editor of 247WallSt.com.
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