Pfizer pays Sanofi-Aventis $1.3bn for Exubera rights

Pfizer has come to agreement with Sanofi-Aventis for worldwide rights to Exubera, the inhaled human insulin medicine.

Under the agreement Sanofi-Aventis will receive $1.3 billion for giving up its share of the worldwide rights previously held jointly along with the insulin production facilities in Frankfurt.

The deal follows a series of legal wranglings after Aventis was acquired by Sanofi-Synthelabo.

Originally Pfizer and Aventis were partners in developing and marketing the drug but Pfizer claimed a clause in the agreement allowed them to purchase the rights in the event of a takeover.

However, Sanofi disagreed and intended to hold on to its share of Exubera, but after a court ruling the two companies were able to forge a deal.

Hank McKinnell, Pfizer chairman and CEO, said: “As diabetes reaches epidemic levels worldwide, new treatment options such as Exubera – the first inhalable, non-injectable insulin medicine – have the potential to improve the lives of millions of people with diabetes.

“We sought the Sanofi-Aventis rights to Exubera based on the strong addition it would represent to our portfolio of innovative medicines. The acquisition of these rights also underscores our ability to invest in new product opportunities that will drive our future growth.”

World Health Organisation figures for diabetes show around 194 million people worldwide suffer from the disease and this number is set to double by 2030. Direct healthcare costs are thought to be as much as $286 billion worldwide.

© Adfero Ltd