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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