Pfizer and Flamel Technologies sign license agreement

Flamel Technologies (Nasdaq:FLML) today announced that Pfizer (NYSE:PFE) has exercised its option to license Flamel’s Medusa® technology for the development of a controlled release formulation of an already-marketed therapeutic protein.

Flamel will receive a further payment of $1 million pursuant to the exercise of the license; Pfizer will pay all development costs of the program, including milestone payments and royalties on any worldwide commercial sales. The program was begun in 2007 with Wyeth, which was acquired by Pfizer last month. The program leverages Flamel’s ability to create controlled-release formulations of therapeutic proteins for intravenous administration.

Stephen H. Willard, Flamel’s chief executive officer, commented, “Pfizer’s decision to move forward follows a two year evaluation period during which Flamel has developed and demonstrated an aspect of the Medusa platform which allows us to work on controlled release formulations of molecules that are injected intravenously. We believe that this work has the potential to benefit patients in many ways, not least by lessening the time and costs associated with frequent hospital visits.”