Pfizer 2007 Annual Report Download - page 11

•In the second quarter of 2007, we entered into a collaboration
agreement with BMS to further develop and commercialize
apixaban, an oral anticoagulant compound discovered by BMS,
that is being studied for the prevention and treatment of a
broad range of venous and arterial thrombotic conditions. We
made an initial payment to BMS of $250 million and additional
payments to BMS related to product development efforts, which
are included in Research and development expenses in 2007. We
may also make additional payments of up to $750 million to BMS,
based on development and regulatory milestones. In a separate
agreement, we are also collaborating with BMS on the research,
development and commercialization of DGAT-1 inhibitors, a
class of compounds that modify lipid metabolism.
•In April 2007, we agreed with OSI Pharmaceuticals, Inc. (OSI) to
terminate a 2002 collaboration agreement to co-promote
Macugen, for the treatment of age-related macular degeneration
(AMD), in the U.S. We also agreed to amend and restate a 2002
license agreement for Macugen, and to return to OSI all rights
to develop and commercialize Macugen in the U.S. In return,
OSI granted us an exclusive right to develop and commercialize
Macugen in the rest of the world.
•In the first quarter of 2007, we acquired BioRexis, a privately
held biopharmaceutical company with a number of diabetes
candidates and a novel technology platform for developing new
protein drug candidates, and Embrex, an animal health
company that possesses a unique vaccine delivery system known
as Inovoject that improves consistency and reliability by
inoculating chicks while they are still inside the egg. In
connection with these and other smaller acquisitions, we
recorded $283 million in Acquisition-related in-process research
and development charges.
•In December 2006, we entered into a collaboration agreement
with Kosan Biosciences Inc. (Kosan) to develop a gastrointestinal
disease treatment. In 2006, we expensed a payment of $12
million, which was included in Research and development
expenses. Additional milestone payments of up to approximately
$238 million may be made to Kosan based upon the successful
development and commercialization of a product.
•In September 2006, we entered into a license agreement with
Quark Biotech Inc. for exclusive worldwide rights to a compound
for the treatment of neovascular (wet) AMD.
•In September 2006, we entered into a license and collaboration
agreement with TransTech Pharma Inc. (TransTech) to develop
and commercialize small- and large-molecule compounds for
treatment of Alzheimer’s disease and diabetic neuropathy. Under
the terms of the agreement, Pfizer received exclusive worldwide
rights to TransTech’s portfolio of compounds. In 2006, we
expensed a payment of $101 million, which was included in
Research and development expenses. Additional significant
milestone payments may be made to TransTech based upon the
successful development and commercialization of a product.
•In June 2006, we entered into a license agreement with Bayer
Pharmaceuticals Corporation to acquire exclusive worldwide
rights to DGAT-1 inhibitors. The lead compound in the class, BAY
74-4113, is a potential treatment for obesity, type 2 diabetes
and other related disorders.
•In June 2006, we acquired the worldwide rights to fesoterodine,
a drug candidate for treating overactive bladder which was
approved in the E.U. in April 2007 and is under regulatory
review in the U.S., from Schwarz Pharma AG.
•In March 2006, we entered into research collaborations with
NicOX SA in ophthalmic disorders and NOXXON Pharma AG in
obesity.
•In February 2006, we completed the acquisition of the sanofi-
aventis worldwide rights, including patent rights and production
technology, to manufacture and sell Exubera, an inhaled form
of insulin, and the insulin-production business and facilities
located in Frankfurt, Germany, previously jointly owned by
Pfizer and sanofi-aventis, for approximately $1.4 billion in cash
(including transaction costs). Substantially all assets recorded in
connection with this acquisition have now been written off. See
the “Our 2007 Performance: Decision to Exit Exubera” section
of this Financial Review. Prior to the acquisition, in connection
with our collaboration agreement with sanofi-aventis, we
recorded a research and development milestone due to us from
sanofi-aventis of approximately $118 million ($71 million, after
tax) in 2006 in Research and development expenses upon the
approval of Exubera in January 2006 by the FDA.
•In December 2006, we completed the acquisition of PowderMed,
a U.K. company which specializes in the emerging science of
DNA-based vaccines for the treatment of influenza and chronic
viral diseases, and in May 2006, we completed the acquisition
of Rinat, a biologics company with several new central-nervous-
system product candidates. In 2006, the aggregate cost of these
and other smaller acquisitions was approximately $880 million
(including transaction costs). In connection with these
transactions, we recorded $835 million in Acquisition-related in-
process research and development charges.
•In November 2005, we entered into a research collaboration and
license agreement with Incyte Corporation (Incyte) and received
exclusive worldwide rights to Incyte’s portfolio of CCR2
antagonist compounds for potential use in a broad range of
diseases. In 2006, we expensed a payment of $40 million, which
was included in Research and development expenses. Additional
milestone payments of up to $738 million could potentially be
made to Incyte based upon the successful development and
commercialization of products in multiple indications.
•In September 2005, we completed the acquisition of all of the
outstanding shares of Vicuron, a biopharmaceutical company
focused on the development of novel anti-infectives, for
approximately $1.9 billion in cash (including transaction costs).
In connection with the acquisition, as part of our final purchase
price allocation, we recorded $1.4 billion in Acquisition-related
in-process research and development charges, and $243 million of
Goodwill, which has been allocated to our Pharmaceutical segment.
•In April 2005, we completed the acquisition of Idun
Pharmaceuticals Inc. (Idun), a biopharmaceutical company
focused on the discovery and development of therapies to
control apoptosis, and in August 2005, we completed the
acquisition of Bioren Inc. (Bioren), which focuses on technology
for optimizing antibodies. In 2005, the aggregate cost of these
and other smaller acquisitions was approximately $340 million
2007 Financial Report 9
Financial Review
Pfizer Inc and Subsidiary Companies