Nifty. I was thinking about posting this later this week after $ICGN’s 1Q11 results tomorrow, but then they go ahead and announce a research deal with Yale and $PFE to study the role of Nav1.7 in inherited erythrinelalgia (IEM) – you would have thought a partnership like this would have already been established. So, here’s to piggybacking on news. If I were a biotech company and needed cash – this would be the time (up 10% this AM)!

I was looking at companies whose lead molecules had failed and looking to see what they might have in their back pocket as interesting long-term (speculative) ideas. One company that popped up was Icagen ($ICGN), a company that has had its fair share of failures – remember senicapoc? First for sickle cell, then asthma, and then, well you get the picture.

What struck me about their current clinical assets is that the targets selected have a connection to a known human condition. It’s too bad they couldn’t have started with these two programs. While not a guarantee for success, at least we have a known human action for the target. A bit more sophisticated than $LXRX and their mouse KO models, wouldn’t you say?

Without getting too detailed, the first molecule in the clinic targets Nav1.7 (SCA-9a), a sodium channel, which when blocked blocks pain, and when open constitutively increases pain. Pretty cool. It is partnered with $PFE, who has control over development, so we won’t likely hear much about it unless it passes muster a couple of years from now. Give credit to $PFE, they have partnered with biotech on some pretty nifty pathways – $ADLR with its delta opioid program, and $RNVS/$EVT with its VR1 program. $PFE could use a win here.

Quick summary of disease: http://www.ncbi.nlm.nih.gov/books/NBK1163/

ICA-105665 (‘665) is a second molecule in clinical development and targets KCNQ, a potassium channel. Potassium entering cells restores membrane potential and quiets them down, so ‘665 is designed to activate this receptor, with hopes of quieting neurons from over-firing, as a treatment for patients with epilepsy. The human connection? Benign familial neonatal convulsions.

Quick summary of disease:
http://www.ncbi.nlm.nih.gov/books/NBK32534/#bfns.KCNQ2

It should be noted that clinical development was placed on hold back in Sep10 due to a SAE at one of the higher doses, but the hold was lifted early this year (Feb). A P2b is expected to initiate later this year, so I’ll look forward to the final trial design then, but thus far, they have said: 60-pts currently taking three or fewer epileptic drugs treated for four weeks to evalute safety and seizure frequency.

Nuts and bolts. On their most recent 10K, they had 7.3M shares outstanding; for all practical purposes the 677K options and 652K warrants listed are both way out of the money. Trading at $2.72/share (4-29-11 close), market cap is ~$20MM.

With $12M in the bank YE10 + $1.2M drawn from their ATM facility earlier this year, pro forma cash is $13.2M. MGMT has guided a net cash burn of $1.5M/Q, which gives them $11.7M cash 1Q11. They have budgeted $4M for the P2b 665 trial, so they could spend $8.5M over the next 9-mo, and will need to raise cash.

No position. Interesting long-term potential with no news for NAV1.7 and initiation of ‘665 P2b until later this year.

It is too bad these types of companies don’t delist, go stealth privately, and then re-emerge…hmm