Nexium (esomeprazole magnesium) is a prescription drug currently approved to treat the symptoms of gastroesophageal reflux disease (GERD).
Pfizer consumer healthcare president Paul Sturman said, "By working with AstraZeneca to offer upon regulatory approval an over-the-counter version of NEXIUM – a brand people know and trust – we are taking another crucial step to empower consumers by providing convenient access to important healthcare products."
As per the agreement, Pfizer will take over the exclusive global rights to market Nexium for the approved over-the-counter indications in the US, Europe and the rest of the world and in turn make an upfront payment of $250m to AstraZeneca.
AstraZeneca is even eligible to receive milestone and royalty payments based on product launches and sales.
AstraZeneca global commercial organisation executive vice president Tony Zook said, "This agreement will help AstraZeneca realize the substantial, long-term value of this brand and potentially other brands in our portfolio."
A marketing authorisation application for OTC Nexium in a 20mg tablet form was filed with the European Medicines Agency in June 2012 and a new drug application filing for OTC Nexium in the US in 20mg delayed release capsules is targeted for the first half of 2013.
Pfizer targets Nexium 20mg retail launch in the US in 2014, subject to regulatory approval.