Pfizer Taps Incyte for Compounds

Pharmaceuticals

Pfizer has signed a research and licensing agreement with Incyte, a drug development company that specializes in the treatment of chronic inflammatory conditions.

Under the deal, Pfizer gains exclusive rights to Incytes portfolio of CCR2 antagonist compounds, the most advanced of which are in clinical studies for patients with rheumatoid arthritis and for insulin-resistant obese patients. Incyte will receive an up-front payment of $40 million and will be eligible to receive additional milestone payments of up to $743 million, as well as royalties.

Incyte CEO Paul A. Friedman says Pfizer is ideally positioned to advance his firms CCR2 antagonist program. He notes that the deal is also structured to support Incytes independent drug development efforts in that the company will retain rights to compounds for multiple sclerosis and another unspecified therapeutic area.

Martin Mackay, senior vice president for worldwide research and technology at Pfizer, calls the deal a further step in our strategy to augment Pfizers internal research and development efforts with high-potential, externally sourced product candidates and technologies.

Last week, Pfizer also selected a candidate in its year-old collaboration with the French drug firm NicOx, which is developing novel nitric oxide-donating compounds for ophthalmology. Other external moves this year include the $1.9 billion acquisition of Vicuron Pharmaceuticals, an anti-infection specialist, and the purchase of privately held Bioren, focused on antibody technologies.

In recent years, Pfizer has acquired Esperion Therapeutics, Idun Pharmaceuticals, Angiosyn, and Meridica, and entered into collaborations with Medarex, Rigel, and Coley Pharmaceutical Group.

Pfizer, which recently reported an 8% drop in third-quarter earnings, is also advancing a cost-cutting program. The firm is closing its Parsippany, N.J., plant by 2008, laying off 490 employees; the first 125 jobs will go early next year. The facility manufactures creams and ointments including BenGay and Desitin. Since 2003, Pfizer has announced plans to cut the number of plants in its global network by 25%.