LIONVILLE, Pa. (AP) — West Pharmaceutical Services Inc., which makes parts for vials and syringes, said Wednesday it has negotiated with Nektar Therapeutics Inc. to be reimbursed for costs related to the suspension of manufacturing and parts assembly for the Exubera inhalable insulin device.
Production of the diabetes device was suspended in October 2007 after drug maker Pfizer Inc. decided to discontinue marketing the product, returning the marketing rights to Nektar.
Financial terms of the agreement were not disclosed, but West said it will be reimbursed for facility, inventory, raw materials and personnel costs at levels consistent with the company's expectations. West has agreed to maintain the facility for between 2 and 10 months while Nektar decides how to resolve its Exubera plans.
West expects to recognize an impairment charge of $12.9 million, in line with its previously disclosed estimate of between $11.0 million and $13.1 million, in the 2007 fourth quarter for its investment in the Nektar contract.
