Pfizer licenses Bayer's DGAT-1 inhibitors

Global drugs giant Pfizer and Germany's Bayer AG say that they have entered into a licensing deal that grants the former exclusive worldwide rights to Bayer's DGAT-1 (diacylglycerol acyltransferase 1) inhibitors. The lead compound in this drug class, BAY 74-4113, is being assessed in a Phase I trial as a treatment for type 2 diabetes.

Under the terms of the agreement, Bayer will receive an upfront fee, payments associated with the achievement of developmental milestones and royalties based on the sale of any products which emerge. The deal, which is still subject to the findings of an antitrust review, is expected to close in the second half of the year.

Commenting on the accord, Martin Mackay, Pfizer's senior vice president of worldwide research and technology, said that both obesity and diabetes are increasing to near epidemic levels around the world, indicating that there is a real need for the development of new treatments. Gunnar Riemann, head of Bayer HealthCare's Pharmaceuticals division, said that the Pfizer deal validates the quality and expertise of its research program. He added that the outlicensing of the drug was in line with the firm's focus on the development of specialty pharmaceuticals.