Pfizer/Nektar inhaled insulin contract settled for $135 million

NEW YORK and SAN CARLOS, Calif. Pfizer has agreed to pay Nektar Pharmaceuticals $135 million in a one-time payment to resolve all outstanding contractual issues in connection with the inhaled insulin drug Exubera and Nektar’s innovative Next Generation Inhaled insulin product, which is currently in Phase 1 clinical development.

Also included in the agreement, if Nektar finds a new partner, Pfizer will agree to transfer its remaining rights and economic benefits for Exubera and NGI. This transfer of Pfizer’s interests would include the transfer of the Exubera New Drug Application and Investigational New Drug Applications and all ex-U.S. regulatory filings and applications, continuation of ongoing Exubera clinical trials and certain supply chain transition activities.

Jeffrey Kindler, chairman and chief executive officer of Pfizer and Howard Robin, president and chief executive officer of Nektar issued the following joint statement today:

“This agreement demonstrates the industry leadership of Pfizer and the company’s desire to work with world-class biotechnology partners like Nektar. The agreement strengthens our relationship and demonstrates our ability to work together to craft a solution that allows Nektar the ability to pursue additional commercial opportunities for the Exubera and NGI inhaled insulin franchises. Further, we look forward to advancing our joint development of PEGylated human growth hormone therapy to treat short stature and growth problems.”