Pfizer flops with Exubera drug

Pfizer Inc. has chosen to drop the inhaled insulin drug known as Exubera, invented by Nektar Therapeutics, which was projected to garner $2 billion in sales.

According to the BusinessWeek web site, "Analysts expected Exubera to spawn copycats, turning inhaled insulin into a $5 billion annual market. But on Oct. 18 Pfizer made a jolting turnabout, announcing it was pulling the plug on Exubera, returning all rights to Nektar, and taking a staggering $2.8 billion charge."

It seems Pfizer made a grievous miscalculation in how patients with diabetes manage their disorder. The company was attracted to the drug because of the fear many diabetes patients have of sticking themselves with needles multiple times a day, and an inhaled insulin drug seemed like a fabulous alternative. Yet Exubera came with its own set of problems, such as its cumbersome size and patients cannot adjust the dosage as easily as they can with injected insulin.

As a result of Pfizer pulling the plug on the drug, Nektar stock plummeted 22 percent. U.S. regulators approved the drug in 2005.

"Despite our best efforts, Exubera has failed to gain the acceptance of patients and physicians," Pfizer Chief Executive Jeff Kindler said in a statement. "We have therefore concluded that further investment in this product is unwarranted."