Pfizer and Nektar resolve Exubera issues

World drug giant Pfizer and fellow USA-based Nektar Therapeutics have resolved all outstanding contractual issues in connection with their co-developed and now discontinued inhalalable insulin Exubera and Nektar's innovative next-generation inhaled insulin product currently in Phase I clinical development.

The market reacted positively to the news. On the day of the announcement, November 13, shares in Nektar rose 16.6% to $6.76. The US drug-delivery specialist's share price fell to a four-year low of $6.69 last month, after Pfizer announced its decision to stop marketing Exubera, after patients complained about the inconveniently bulky inhaler device (Marketletter October 29).

Under the terms of the deal, Nektar will receive a one-time payment of $135.0 million from Pfizer in satisfaction of all remaining obligations under existing agreements relating to Exubera and NGI. In addition, in the event that a new partner is selected, Pfizer has agreed to transfer its remaining rights and all economic benefits for Exubera and NGI. This transfer would include the Exubera New Drug Application and Investigational New Drug Applications as well as all ex-US regulatory filings and applications, continuation of ongoing Exubera clinical trials and certain supply chain transition activities.