Mylan to acquire Pfizer’s generic version of Advair with inhaler technology
10 Nov 2011
US-based generic drug maker Mylan Inc yesterday said that it has entered into an agreement with Pfizer for the exclusive worldwide rights to Pfizer's generic equivalent to GlaxoSmithKline's (GSK) blockbuster asthma drug Advair incorporating Pfizer's inhaler technology.
Mylan has bought exclusive worldwide rights to develop, manufacture and commercialize Pfizer's generic versions of GSK's Advair Diskus and Seretide Diskus using Pfizer's proprietary dry-powder inhaler delivery system.
Both drugs are used to treat asthma and chronic obstructive pulmonary disorder. The deal also will allow Mylan to use the system to develop other branded and generic drugs.
Under the deal, Canonsburg, Pennsylvania-based Mylan will employ select key members of the former Pfizer respiratory inhalation development team based at UK, where Mylan will establish a respiratory development division.
As part of the agreement, Mylan will pay for the remaining development and capital expenditures to bring the drugs to the market.
Mylan will pay Pfizer $17.5 million as additional milestone payments and may pay more depending on how successful the products are and also share in the profit.
Mylan will have exclusive commercial rights for the generic equivalent to GSK's Advair Diskus and Seretide Diskus in the US, Canada, Australia, New Zealand and in the European Union and European Free Trade Association countries.
In the rest of the world, Mylan and Pfizer will have co-promotion rights to the product. Both companies did not disclose the other financial terms and product details, citing confidentiality.
"We are extremely pleased to enter into this agreement with Pfizer, as we believe that inhaler-based products represent a significant opportunity for our generics business and expand our focus on difficult-to-produce, limited competition products," said Mylan president Heather Bresch. "We are particularly excited about the global potential of a generic Advair."
MS Health estimates that the global market for asthma and COPD (chronic obstructive pulmonary disorder) prescription drugs is $34 million and growing at about 7 per cent per year. More than half of the market is expected to lose patent protection by the end of 2016, including several blockbuster drugs, including inhaled drugs.