Nektar Therapeutics is actively seeking new partners for Exubera after Pfizer dropped the inhaled insulin product, Nektar told "The Pink Sheet" DAILY. Pfizer will make a $135 million one-time payment and return remaining rights to Nektar under a resolution to the Exubera contract announced Nov. 13.

Pfizer said it was pulling the plug on Exubera in October, having failed to convince physicians and consumers of the convenience of the inhaled insulin product (¹ Also see "Pfizer’s Not Waiting To Exhale; Firm Takes Action By Terminating Exubera" - Pink Sheet, 18 October, 2007.).

As a result of the unsuccessful launch, the firms also halted development of Nektar's next-generation inhaled insulin product, which they refer to as NGI, now in Phase I.

The resolution to the contract heads off a potentially antagonistic situation between the two companies.

San Carlos Calif.-based Nektar, which said it learned of Pfizer's decision to phase out Exubera from a press release, blamed Pfizer for the disappointing launch, although the pharma giant said it poured substantial resources into the project.

"In the event that a new partner is selected" by Nektar, Pfizer agreed to transfer its remaining rights and all economic benefits for Exubera and NGI, including the Exubera NDA and IND applications, all ex-U.S. regulatory filings, ongoing Exubera clinical trials and supply chain transition activities.

It is unclear, however, whether Nektar would have better luck with another partner, given the market reception for Exubera. The product had generated only $12 million in sales for 2007 before Pfizer made its Oct. 18 decision. When Exubera launched, Pfizer projected the product would produce $2 billion in sales annually by 2010. Pfizer took a pre-tax charge of $2.8 billion related to the write-off of assets associated with Exubera.

The $135 million payment will satisfy "all remaining obligations under existing agreements relating to Exubera and [next-generation inhaled insulin product]," the firms noted.

"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," Pfizer CEO Jeff Kindler and Nektar CEO Howard W. Robin said in a joint statement.

"Further, we look forward to advancing our joint development of PEGylated human growth hormone therapy to treat short stature and growth problems," they added. The product is currently in Phase II.

Nektar is partnered on several other late stage inhalation products. Tobramycin Inhalation Powder, in development with Novartis for lung infections in cystic fibrosis, is in Phase III. The firm also is developing inhaled dronabinol in Phase II for multiple indications with Solvay Pharmaceuticals.

-Brooke McManus (b.mcmanus@elsevier.com)

Nektar Seeking New Partner For Exubera As Pfizer Returns Rights

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