According to latest
reports, drug manufacturers Pfizer Inc.(NYSE:PFE) and AstraZeneca plc
(ADR)(NYSE:AZN) have entered a deal that gives Pfizer future rights to sell the
nonprescription form of Nexium, the blockbuster heartburn drug, Nexium. This will take effect from 2014.
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The deal was announced
on Monday. This can help Pfizer in expanding its consumer health business. The
company is always on the lookout of strengthening its core drug-making business
and dissociate from its infant formula and animal-health projects. This deal
will help AstraZeneca to get some revenue from one of its top sellers after the
competition surges. The companies have mentioned that they all are exploring
the prospects of a partnership in order to transform AstraZeneca prescription
drugs to the non-prescription ones.
Pfizer needs to win
approval from the FDA and regulators in other countries to be able to sell the
nonprescription Nexium. Nexium treats ulcer and acid-reflux ailments by
decreasing excess stomach acid. Its chemical name is esomeprazole.
As per records, Nexium
had won the accolade of being the 5th best selling medicine of the
year last year. According to a health data firm, IMS drug, the drug has global
revenue of about $8 billion. Nexium has long been referred to in the TV ads as
the ‘purple pill’ that helps in stopping heartburn for 24 hours.
Viagra-maker Pfizer
Inc. has stated that it is targeting at applying to FDA in the first half of
2013 for winning approval for selling Nexium in 20 milligram. This has delayed
the release of the capsule. An application to sell the same dosage in form of
tablets was filed with the European Medicines Agency in the month of June.
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If Pfizer gets the
approval, then its goal would be to release over-the-counter Nexium in the US
in 2014. Reports reveal that the drug’s patent is scheduled to expire in the US
in spring 2014. The drug-maker plans on selling the product in other countries
shortly after that.
Shares of PFE were up
1.10% to $23.98 on Tuesday.
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