NEW YORK (MarketWatch) -- Pfizer Inc. received exclusive worldwide rights to a class of Bayer Pharmaceuticals Corp. compounds that could lead to treatments for diabetes and obesity, the companies said.
The class of compounds, called DGAT-1 inhibitors, modify lipid metabolism. The lead compound in the group is a potential treatment for obesity, type 2 diabetes and other related disorders. The compound is still in Phase I clinical development, the companies said.
Under the terms of the companies agreement, the Bayer AG unit
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will receive an up-front fee from Pfizer,
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payments as the compounds reach milestones, and royalties on sales of any compounds that are successfully commercialized.
Financial terms were not disclosed. Subject to antitrust clearance, the deal is expected to close in the second half of 2006.
Separately, Bayer and Merck KGaA (
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said they reached a deal on Merck's 21% stake in Schering.
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Bayer agreed to pay about 3.7 billion euros for the holding and gives it control of Schering.
Angela Moore is a MarketWatch editor based in New York.