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OTCPicks Featured Article: Pfizer Acquires Encysive Pharmaceuticals, Inc. (ENCY) and Rights to Premium Drug

Pfizer is currently working on acquiring Encysive Pharmaceuticals, Inc., a publicly held biopharmaceutical company. Encysive developed a product called THELIN®, an oral, taken once daily endothelin – A receptor antagonist (ETRA), which is used for the treatment of pulmonary arterial hypertension (PAH). THELIN® is commercially available in much of the European Union and is approved in other markets. The company saw a rise of 110.19% on Wednesday.

The agreed upon terms call for Pfizer to make a cash tender offer for all issued and outstanding shares of Encysive for $2.35 per share, which is conclusive to an equity value of $195 million. Upon completion of the tender offer, one of Pfizer’s subsidiaries will merge with Encysive, and the outstanding shares that aren’t tendered pursuant to the tender offer will be converted into the right to receive per share price that is listed in the agreement. It has been recommended by Encysive’s Board of Directors for all stockholders to accept the tender offer and tender their shares, since the merger has already been approved by the Board of Directors.

Pfizer will also acquire the rights to THELIN® which has been approved for marketing in the European Union and is available in the United Kingdom, Germany, Ireland, Spain, France, Italy, Belgium, Luxembourg, and the Netherlands. THELIN has been subject to three approval letters from the U.S. Food and Drug Administration (FDA).

“The process initiated in July of 2007 to review Encysive’s strategic alternatives led us to consider a range of opportunities for increasing shareholder value,” commented George W. Cole, president and chief executive officer of Encysive. “After a thorough analysis, Encysive’s Board of Directors concluded that this cash transaction with Pfizer represents the best option for our shareholders now. Pfizer has come with a superior offer and with an in-depth understanding of pulmonary arterial hypertension, our primary therapeutic focus.”

“The acquisition of Encysive will add growing, near-term revenue from the European market and increase our already strong presence in the cardio-respiratory arena with a product that complements REVATIO™, a PAH treatment that was discovered and developed by Pfizer researchers,” said Ian Read, president of Pfizer’s Worldwide Pharmaceutical Operations. “We look forward to applying Pfizer’s significant resources to the launch of THELIN in additional countries.”

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