Mylan to acquire Pfizer generic respiratory delivery platform; challenge to GSK

US generic drug major Mylan (Nasdaq: MYL) has entered into an agreement with global pharma behemoth Pfizer (NYSE: PFE) for the exclusive worldwide rights to develop, manufacture and commercialize Pfizer's generic equivalent to GlaxoSmithKline's (LSE: GSK) blockbuster salmeterol and fluticasone brands Advair Diskus and Seretide Diskus incorporating Pfizer's proprietary dry powder inhaler delivery platform. The two GSK products bought in sales of £1.22 billion ($1.96 billion) in the third quarter of this year.

In addition, Pfizer will grant Mylan rights to its dry-powder delivery platform to develop and commercialize additional brand and generic pharmaceutical products, including rights of negotiation for certain existing Pfizer compounds currently in various stages of development.

As part of the agreement, Mylan will pay for remaining development and capital expenditures to bring products to market. Pfizer will be due $17.5 million at closing of the transaction and will be eligible for additional payments, contingent upon regulatory and commercial success, including profit sharing. Mylan will have exclusive commercialization rights for the generic equivalent to Advair Diskus and Seretide Diskus in the USA, Canada, Australia, New Zealand and in the European Union and European Free Trade Association countries. In the rest of the world, Mylan and Pfizer will have co-promotion rights to the product. All other financial terms and product details remain confidential.

As this story was posted, GSK had not responded to The Pharma Letter’s request to comment on the implications of the deal between Mylan and Pfizer.