By Michael Erman
Nov 11 (Reuters) - Pfizer said on Wednesday that Blackstone would provide up to $1.5 billion through 2028 to help fund the development of an experimental monthly obesity treatment the drugmaker picked up last year with its up to $10 billion acquisition of Metsera.
In exchange for the funding, Blackstone will be eligible to receive milestone-based payments, but will not get any rights or ownership in the drug, berobenatide.
Pfizer said the deal would give it more flexibility to invest
in its broader pipeline across therapeutic areas, adding that it will keep full control over the development program for the medication.
"Our aim is to bring important new medicines to patients while taking a disciplined approach that pairs internal research investments with targeted investment from capital partners," Cecile Guegan, Pfizer's newly appointed chief financial officer, said in a statement.
The companies did not immediately disclose the size of the milestone payments. They said the payments would be subject to US regulatory approval of monthly dosing of injectable berobenatide monotherapy for chronic weight management, and achievement of certain commercial sales milestones.
Pfizer bought Metsera toward the end of an acquisition spree intended to replace waning revenue from COVID products and looming patent expirations for key drugs.
It has 10 ongoing and planned Phase 3 trials for berobenatide, and said it is currently looking at developing the drug both as a monotherapy and in combination with other peptides.
The company had previously done a similar deal with Blackstone. In April 2023, Pfizer signed a deal with Blackstone under which it received up to $550 million through this year to co-fund its development costs for certain treatments.
Shares of Pfizer rose 0.2% to $29.52 in extended trading on Wednesday after closing up slightly at $29.45.
(Reporting by Michael Erman in New York, Additional reporting by Kunal Das in Bengaluru; Editing by Bill Berkrot)
