Pfizer Inc. has entered into an agreement with Schwarz Pharma AG under which Pfizer will acquire exclusive worldwide rights to fesoterodine, a new drug candidate for treatment for overactive bladder.

Earlier this year, Schwarz submitted new drug applications for fesoterodine with both the US Food and Drug Administration and the European Medicines Evaluation Agency (EMEA).

"Overactive bladder is a debilitating condition that affects up to 100 million people around the world," Karen Katen, vice chairman of Pfizer Inc and president, Pfizer Human Health said adding, "We are excited about the potential of this new medicine to offer patients and their doctors a new alternative to existing therapies for managing the symptoms of overactive bladder."

Under the terms of the agreement, Pfizer will make an initial payment of $100 million to Schwarz Pharma plus additional payments based on certain milestones. Schwarz Pharma will also be entitled to royalties on sales of both fesoterodine and Pfizer's Detrol product line for treatment of overactive bladder. The agreement settles all existing and potential fesoterodine patent litigation between the parties worldwide. The agreement is subject to clearance by US Federal Trade Commission.