Scios Nova Inc. and Pfizer Inc. have restructured their developmentagreement for insulinotropin, a treatment for Type II diabetes, thatbegan in 1988. Pfizer is conducting Phase II clinical studies with asubcutaneous formulation of insulinotropin, and is also developing asustained-released form of the drug.Under the new terms of the agreement, New York-based Pfizer(NYSE:PFE) will provide time-based and event-based milestonepayments to Scios Nova (NASDAQ: SCIO), of Mountain View, Calif.,in exchange for a reduction in future royalty payments to Scios Novaand changes in the manufacturing and marketing terms. The 1988agreement with Scios Nova's predecessor was for a $30 million, five-year commercial alliance for the treatment of diabetes and obesity. InOctober 1993, Scios Nova announced that Pfizer had elected not topursue the development of a series of insulin analogs by Scios Nova.Scios Nova said the new structure allows for a nearer-term return forthe company and gives Pfizer greater pricing flexibility upon thelaunch of insulinotropin. A Pfizer spokesman said his company waspleased with the collaboration so far, and noted that the new agreementwould enable Pfizer to move the drug as quickly as possible throughclinical development.Kira Bacon, Scios Nova's spokesman, said the arrangement withPfizer had extended beyond the initial five-year period because of thescientific challenges the project presented. She said its restructuringwas based on Scios Nova's decision to concentrate on acute-careproducts, and to pursue chronic-disease drugs only when they weresupported by outside sources. _ Philippa Maister
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