Pfizer and Medivation: Dimebon Co-Development Agreement

Pfizer and Medivation have signed a global co-development deal for Dimebon, a potential drug for Alzheimer’s disease treatment. Pfizer is already a major player in this market with its leading therapy Aricept. Datamonitor expects Dimebon to achieve sales revenue of $1.8 billion in the seven major markets by 2017, protecting Pfizer from significant revenue loss following Aricept’s patent expiry.

Pfizer and Medivation are to collaborate on the development of Dimebon, a potential drug for the treatment of Alzheimer’s and Huntington’s diseases. Under the terms of the agreement, Medivation will receive an up-front cash payment of $225 million, and will also be eligible to receive payments of up to $500 million upon the attainment of development and regulatory milestones, as well as additional undisclosed commercial milestone payments. The two companies will share the drug development and commercialization expenses in the US, along with profits and losses, on a 60% and 40% basis, while Pfizer will have all responsibility for development, regulatory and commercialization outside the US.

Dimebon is currently in Phase III clinical trials for the potential treatment of Alzheimer’s disease, and is also in clinical development for the orphan indication Huntington’s disease. Dimebon, which demonstrated very promising Phase II results, is an orally-available, small molecule that is believed to block the mitochondrial permeability transition pore (MPTP), the glutamate NMDA receptor and cholinesterase activity. The MPTP would appear to be a new clinical target for tackling neurodegeneration. With its multiple therapeutic targets, Dimebon could be seen as being both symptomatic and potentially disease slowing. The proven symptomatic targets of cholinesterase inhibition and NMDA receptor antagonism significantly reduce the risk of failure in the current Phase III trial program.

Datamonitor expects Dimebon to be launched in 2011, and to generate sales revenue of $1.8 billion in the seven major markets by 2017 for Alzheimer’s disease treatment. Pfizer has unrivalled commercial experience and strong sales resources in Alzheimer’s disease through marketing the current market leader Aricept (donezepil). This agreement will enable Pfizer to maintain its revenue stream in this indication, which is threatened by Aricept’s US patent expiry, expected in 2010. By negotiating a profit sharing agreement with the market leading company, Medivation has positioned itself well for commercial success with Dimebon.