A Durham drug company developing treatments for pain and epilepsy has received a $3 million payment from larger partner Pfizer.
Icagen researchers started a clinical trial to test several compounds as pain medicines, triggering the first milestone payment from Pfizer. Icagen announced in 2007 that it would collaborate with Pfizer on new drugs, a partnership that could be worth hundreds of millions of dollars if an experimental drug is successful.
The payment also gives Icagen a slightly larger cash cushion. Officials have been exploring ways of raising additional financing on Wall Street or through partnerships.
At the end of March, Icagen had about $14 million in cash. Icagen now employs about 50 people, after eliminating some jobs in a cost-cutting effort last year. The company continues to spend about $3 million every quarter.
Icagen's shares, which began trading publicly in 2005, have fallen sharply as investors worry about the company's financial health and whether it will be able to develop a successful drug.
Icagen officials have appealed a Nasdaq decision to delist its shares. In June, shareholders approved a one-for-eight reverse stock split. Such a move would reduce the number of outstanding shares and increase the per share price to help meet the Nasdaq's listing requirements.
Officials are waiting to hear from the Nasdaq before moving ahead with the split, Chief Financial Officer Richard Katz said. Icagen shares fell 6 cents to 34 cents on Thursday.
