Pfizer, Bayer Partner on Obesity Drugs

Pfizer(PFE Quote) is buying exclusive worldwide rights to an experimental class of Bayer(BAY Quote) obesity drugs.

According to the licensing agreement, Bayer will receive an upfront fee, milestone payments and royalties on sales of the drugs. The companies did not disclose specific financial terms of the deal, which is subject to antitrust approval but expected to close in the second half of the year.

"Obesity and diabetes are expanding hand-in-hand at near epidemic levels throughout the world. The need for new treatment options for patients has never been greater," said Dr. Martin Mackay, head of Pfizer's worldwide research and technology group. "We are excited about the potential of the DGAT-1 inhibitors in the areas of obesity and type 2 diabetes which complement Pfizer's ongoing metabolic disease research programs," Mackay said. ...