Pfizer and AstraZeneca ally on OTC Nexium

Pfizer has signed an agreement with AstraZeneca to bring an over-the-counter (OTC) version of Nexium, a leading prescription therapy for gastro-oesophageal reflux disease.

Under the terms of the deal, Pfizer will pay AstraZeneca an upfront fee of $250 million (159.4 million pounds) plus milestone-based payments in exchange for exclusive global rights to the new product.

Nexium was originally launched by AstraZeneca in Europe in 2000 and will continue to be manufactured and marketed by the company in its prescription form, while Pfizer will receive support from its partner on the OTC version once it is approved.

Additionally, the companies are exploring the potential for similar agreements pertaining to other AstraZeneca products where appropriate.

Pfizer consumer healthcare president Paul Sturman said: "By working with AstraZeneca to offer upon regulatory approval an over-the-counter version of Nexium … we are taking another crucial step to empower consumers by providing convenient access to important healthcare products."

The consumer health division of Pfizer is responsible for several internationally recognised brands, including Centrum, Anadin and ChapStick.