Pfizer Inc. (NYSE:PFE) was up the last day after the U.S. Food and Drug Administration allowed partial relief to the company’s Tanezumab, which is being developed with partner Eli Lilly & Co. (NYSE:LLY). The last phase Study of Tanezumab, a pain drug, came to a halt in 2012 after the FDA stayed the development of such pain drugs that targeted a protein named nerve growth factor (NGF).
Studies conducted by other companies on animals showed that these pain drugs were generating nervous system side effects. However, the FDA said that companies can undertake the trials of the non-narcotic medicine, which are designed for terminal cancer pain.
Both Pfizer Inc. (NYSE:PFE) and Lilly confirmed that they will continue the late-stage studies of Tanezumab as the FDA has lifted ban on the studies after reviewing positive response data on the nervous system from the drug. Cowen & Co. took the development positive as it said that if Tanezumab gets the approval then it would fetch nearly $100 million in sales in 2020. However, Tanezumab has to face competition from several anti-NGF drugs, one of which is developed jointly by Regeneron Pharmaceuticals Inc (NASDAQ:REGN) and Sanofi SA (ADR) (NYSE:SNY).
Agreement with Eli Lilly in 2013
In 2013, both Pfizer Inc. (NYSE:PFE) and Lilly entered into an agreement to jointly develop Tanezumab for pain associated conditions and both of the companies agreed to share the expenses and future sales in equal ratio. Pfizer Inc. (NYSE:PFE) had to suspend the late-stage trials of Tanezumab after patients reported worsened Osteoarthritis following initial success in pain relief. However, the trials were later resumed after the FDA directed the company to place proper safeguards and take care that patients do not take other nonsteroidal pain drugs.
The stock of Pfizer Inc. (NYSE:PFE) surged by 2.34% to end the session at $35.05, following the development.