Nastech to reacquire ED product licenses from Pharmacia

Nastech Pharmaceutical, from Bothell, Washington, US, will reacquire all development and marketing rights to intranasal apomorphine for the treatment of erectile dysfunction (ED) and female sexual dysfunction (FSD) from Pharmacia, as part of the latter's pending merger with Pfizer. Pharmacia will also pay Nastech US$13.5m (€12.4m) in divestiture payment, development funds and reimbursement of fees and expenses.

The parties will retain a CRO to enable development work on apomorphine to continue without delay, and Nastech will immediately seek a new global pharmaceutical development and marketing partner.

The agreement is the result of the Federal Trade Commission's (FTC) investigation into the merger between Pfizer and Pharmacia, and is intended to address concerns that it could inhibit innovation and competition in the sexual dysfunction marketplace.

'We are returning all rights to intranasal apomorphine solely to address the issues resulting from the FTC's investigation of our planned merger with Pfizer,' said Fred Hassan, chairman and ceo, Pharmacia Cor-poration. 'If it were not for the concerns raised by the FTC, we would have continued to work aggressively to advance this program.'

'The FTC is investigating a merger that raises concerns that overlapping products of the combined entity could inhibit innovation and competition in the marketplace,' said Dr Steven C Quay, chairman, president, and ceo of Nastech. 'In this case, to address those concerns and ensure that the development and commercialisation of our promising intranasal apomorphine product will proceed aggressively, Nastech has begun the search for a new partner to replace Pharmacia.

'We believe intranasal apomorphine will be a vigorous competitor in the rapidly expanding sexual dysfunction market worldwide, and this divestiture agreement will enable Nastech to continue moving the programme forward.'