Pfizer Inc. and Bayer Pharmaceuticals Corporation (BPC), the US subsidiary of Bayer HealthCare, have entered into an agreement granting Pfizer exclusive worldwide rights to Bayer's DGAT-1 inhibitors, an innovative class of compounds that modify lipid metabolism. The lead compound in the class, BAY 74-4113, is a potential treatment for obesity, type 2 diabetes and other related disorders. The compound is currently in phase I clinical development in Europe.

"Obesity and diabetes are expanding hand-in-hand at near epidemic levels throughout the world and the need for new treatment options for patients has never been greater," said Martin Mackay, Ph.D., senior vice president, Worldwide Research & Technology for Pfizer. "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 programmes."

According to Dr Gunnar Riemann, Head of Bayer HealthCare's Pharmaceuticals Division, "This licensing agreement with Pfizer validates the quality of our expertise in research. Our decision to outlicense this promising candidate is in line with our focus on specialty pharmaceuticals."

An estimated 194 million people have either type 1 or 2 diabetes, according to the International Diabetes Federation, and the World Health Organization estimates that by 2025 the number of people with diabetes will exceed the current U.S. population. Type 2 diabetes is the most common and fastest growing form of the disease and it is often complicated by obesity.

Under the terms of the agreement, Bayer will receive an upfront fee, milestone payments and royalties on sales of any compounds successfully commercialized. Specific financial terms were not announced. The agreement is subject to approval under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and is expected to close in the second half of 2006.