Archive for June, 2011

Icagen Inc. (ICGN) takes flight on hint of Pfizer takeover

Monday, June 27th, 2011

Icagen Inc. (Nasdaq: ICGN) shares rocketed 113.8% to $5.13 after drug manufacturer Pfizer Inc. (NYSE: PFE) said in a regulatory filing late Friday that it was looking at a possible strategic alliance with the biopharmaceutical company. Volume for Icagen totaled 1.8 million shares in the early trading hours of Monday, compared to an all-day average of 71,000.

A news release was issued soon after the market closed on Friday, June 24. In the release, Icagen put out a statement in which it acknowledged that it is currently engaged in preliminary discussions with Pfizer regarding a potential strategic transaction, but, quote “no definitive agreement has been reached.

“There can be no assurance that any agreement will be reached,” the statement continued, “or that a transaction will be consummated. Icagen does not plan to make future announcements with respect to this matter unless and until its Board of Directors has approved a specific transaction or an extension or other modification of the existing collaboration agreement and it has entered into a definitive agreement or the current discussions have terminated.”

Icagen, Inc. is a biopharmaceutical company based in Research Triangle Park, North Carolina, focused on the discovery, development and commercialization of novel orally-administered small molecule drugs that modulate ion channel targets. Utilizing its proprietary know-how and integrated scientific and drug development capabilities, Icagen has identified multiple drug candidates that modulate ion channels.

Acura Pharmaceuticals (ACUR) rides FDA OK to stock surge

Monday, June 20th, 2011

Acura Pharmaceuticals (Nasdaq: ACUR) rose 19.4% to $4.62 on Monday, soon after the company said the U.S. Food and Drug Administration (FDA) had approved a pain treatment owned by Acura and Pfizer Inc. Volume for Acura stock topped 4.3 million, towering over a daily average of just below 168,000.

OXECTA is the first immediate-release oxycodone HCl medicine that applies technology designed to discourage common methods of tampering associated with opioid abuse and misuse. This AVERSION® Technology is a unique composition of commonly used pharmaceutical ingredients. Pfizer is licensing the technology in OXECTA from Acura.

Opioid medications are an important treatment option for patients with moderate to severe pain who are not adequately managed by other pain treatments. However, abuse and misuse of opioids is a serious public health issue that is the focus of a number of recent United States government initiatives.

In the June 20 press release trumpeting the approval from the federal body, interim Acura CEO Robert Jones said, “we are excited to be partnered with Pfizer to bring OXECTA to patients who need opioids to manage their pain. Acura is focused on developing technologies that are intended to potentially deter abuse and misuse.”

Based in Palatine, Ill., Acura Pharmaceuticals, Inc. is a specialty pharmaceutical company engaged in research, development and commercialization of product candidates intended potentially to deter abuse and misuse utilizing its proprietary AVERSION® and IMPEDE® technologies.

Takeover target Harbin Electric (HRBN) surges

Monday, June 20th, 2011

Harbin Electric (Nasdaq: HRBN) shares rose more than 46% to $12.25 on Monday after the company agreed to be bought for $24 a share. A group led by Harbin’s CEO is doing the buying. Harbin Electric said it expects the deal to close in the fourth quarter. Volume for the stock totaled 6.8 million shares, more than five times its all-day average.

The company announced that it has entered into a definitive agreement and plan of merger with Tech Full Electric Company Limited, a Cayman Islands company wholly owned indirectly by Tianfu Yang, the Company’s Chairman and Chief Executive Officer, and Tech Full Electric Acquisition, Inc., a Nevada corporation wholly owned by Parent.

In the June 20 news release regarding the merger, Yang said, “I want to thank the Special Committee for its extremely thorough work in reviewing our offer to take the Company private in order to ensure that the interests of all shareholders of the Company are fully protected.

“I have full confidence that, with the help of its highly respected financial and legal advisors, the Special Committee has thoroughly reviewed and evaluated potential alternatives and has established the credibility of our offer, including the availability of debt financing from China Development Bank Corporation Hong Kong Branch and Abax.”

Harbin Electric, headquartered in Harbin, China, is a leading developer and manufacturer of a wide array of electric motors with a focus on innovative, customized, and value-added products.

Takeover target WPCS International Inc. (WPCS) leaps in price

Thursday, June 16th, 2011

WPCS International Inc. (Nasdaq: WPCS) shares gained 30.9% to $2.92 today after home-security and media-services provider Multiband Corp. (Nasdaq: MBND) signed a non-binding letter of intent to buy the communications-infrastructure firm for $3.20 a share. Shares in WPCS totaled 876,000, compared to average daily volume of just over 23,000.

The acquisition, which will be subject to customary due diligence, negotiation of a definitive merger agreement and other conditions, including the approval of the shareholders of WPCS, is expected to close by the end of the third quarter of 2011. Multiband is offering $3.20 in cash per share for WPCS shares.

In conjunction with the LOI announcement, Multiband has entered into a separate agreement with a third party to acquire for cash at $3.20 per share approximately 710,000 shares of WPCS’s outstanding common stock, representing an approximate 10% interest in WPCS.

In the June 16 press release announcing the takeover, Multiband CEO James L. Mandel commented, “This strategic acquisition will be significant for Multiband, expanding our service offering across a similar geographic footprint to our current presence and creating opportunity for significant operational leverage through the consolidation of real estate, training, and overhead expenses.

“Once integrated, we expect the acquisition to be immediately accretive, adding more than $100 million in revenue and between $5-8 million in EBITDA, on an annual basis.”

The LOI with WPCS has been approved by the Board of Directors of Multiband.

WPCS, based out of Exton, Pa., is a design-build engineering company that focuses on the implementation requirements of communications infrastructure.

MediaMind Technologies Inc. (MDMD) acquired by DG, stock soars

Thursday, June 16th, 2011

MediaMind Technologies Inc. (Nasdaq: MDMD) shares gained 38.2% to $22.03 a piece Thursday, after DG Fastchannel Inc. (Nasdaq: DGIT) said it would pay $418 million, or $22 a share, to buy the digital-advertising company. Volume for the stock topped 2.3 million shares, routing a daily average of just over 70,000.

A news release June 16 announced the definitive agreement, under which DG will acquire MediaMind in an all-cash transaction. The acquisition creates one of the premier global online and television advertising technology companies.

Upon closing, Gal Trifon, President and CEO of MediaMind, will serve as DG’s Chief Digital Officer, leading DG’s online advertising business. Additionally, Ofer Zadikario, MediaMind’s Chief Solutions Officer, will join DG in the same position.

“This is a game-changing transaction that provides DG with an unmatched global footprint, broad customer reach and an innovative platform in television and the fast-growing online advertising market,” said Scott Ginsburg, Chairman and CEO of DG in the same news release. “

In the release, Trifon was quoted thus, “We believe this transaction offers significant value for our shareholders and is the natural, next step for MediaMind. DG will provide us with the added scale and resources to continue to grow our platform and enhance the services we provide our customers. Working together with DG, we will provide a single solution for advertising creation, distribution, and monitoring for cross-platform campaigns.

“We are excited to partner with DG,” Trifon concluded, “to continue to increase our base of large advertisers and expand our global operations, and we are confident that our employees will benefit from the greater opportunities at the combined company.”

Headquartered in New York, MediaMind has 37 sales and representation offices covering 64 countries. In 2010, MediaMind delivered campaigns for 9,000 brand owners using approximately 3,800 media and creative agencies across 8,200 global web publishers in 64 countries.