Pfizer and Nektar Therapeutics have reached an agreement settling their contractual issues regarding Exubera and Nektar's new inhaled insulin product, which is currently in Phase I. Nektar will receive a one-time payment of $135 million from Pfizer to end all obligations under existing agreements relating to Exubera and the new product.

Also, if Nektar finds a new partner, Pfizer will transfer its remaining rights and all economic benefits for Exubera and the new product. This would include the transfer of the Exubera NDA and INDs and all ex-U.S. regulatory filings and applications, continuation of ongoing Exubera clinical trials and certain supply chain transition activities.

Jeffrey B. Kindler, chairman and chief executive officer of Pfizer and Howard W. Robin, president and chief executive officer of Nektar issued a joint statement about the settlement, "This agreement demonstrates the industry leadership of Pfizer and the company's desire to work with world-class biotechnology partners like Nektar. The agreement strengthens our relationship and demonstrates our ability to work together to craft a solution that allows Nektar the ability to pursue additional commercial opportunities for the Exubera and its next generation inhaled insulin franchises. Further, we look forward to advancing our joint development of PEGylated human growth hormone therapy to treat short stature and growth problems."