Merck, Pfizer to Team Up on New Diabetes Drug

by Christopher Freeburn | April 30, 2013 10:27 am

Merck, Pfizer to Team Up on New Diabetes Drug

prescription drugs 300x180 Merck, Pfizer to Team Up on New Diabetes Drug[1]On Monday, Merck & Co. (NYSE:MRK[2]) said it would partner with Pfizer (NYSE:PFE[3]) to develop a new diabetes treatment[4].

Merck paid Pfizer an initial $60 million to launch the partnership. The company said it would receive 60% of any revenue from the new drug, while Pfizer would collect 40%. The companies also planned to divide certain drug development costs on a similar basis, the Associated Press noted.

Centered around ertugliflozin, a drug developed by Pfizer, the partnership will examine potential combination treatments with Merck’s diabetes drug, Januvia, as well as other Merck drugs.

Ertugliflozin will begin late-stage clinical trials later this year.

In February, Merck shares tumbled after the company said it would delay efforts to obtain approval from a new osteoporosis drug[5] from the U.S. Food and Drug Administration until 2014.

Shares of Merck sank almost 1% in Tuesday morning trading, while Pfizer fell more than 2%.

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2011/05/prescription-drugs.jpg
  2. MRK: http://studio-5.financialcontent.com/investplace/quote?Symbol=MRK
  3. PFE: http://studio-5.financialcontent.com/investplace/quote?Symbol=PFE
  4. develop a new diabetes treatment: http://www.businessweek.com/ap/2013-04-29/merck-pfizer-team-up-on-combination-diabetes-pill
  5. delay efforts to obtain approval from a new osteoporosis drug: http://investorplace.com/2013/02/merck-tumbles-on-drug-worries/

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