Bayer and Pfizer pair up on diabetes and obesity drugs

In the lucrative field of diabetes and obesity drugs, pharmaceutical companies often pair up in marketing and rights agreements to make sure they capitalise on products fully. News from the pharmaceutical industry is that Pfizer Inc. has been sold exclusive worldwide rights to a group of compounds developed by Bayer Pharmaceuticals Corp.
The compounds, known as DGAT-1 inhibitors, have a role to play in modifying liquid metabolism . One compound, which is still in phase I clinical development, has the potential to be a serious treatment for type 2 diabetes and obesity.
The companies’ agreement means that Bayer AG unit are to be paid an upfront fee by Pfizer. The payments will then be spread out as the compounds hit milestones. Financial terms have not yet been revealed, but the deal is expected to be very valuable.
The partnership between the two companies could hold future hopes for the treatment of obesity and type 2 diabetes, and could be lucrative for both companies involved. Getting a share of the enormous global diabetes market means that pharmaceutical companies are prepared to lavish large quantities of money on research and development.