Pfizer gives Baxter OK for generic drug

was given the exclusive authorization by to market injectable azithromycin, a generic version of Pfizer's antibiotic Zithromax, a deal expected to lead to new opportunities for the Deerfield-based company.

The agreement marked the first time Baxter has been granted exclusive authorization by a pharmaceutical company to market a generic version of its brand product.

Under the deal, Pfizer will manufacture generic azithromycin for injection, and medical products maker Baxter will sell and market it in the United States.

Though the agreement isn't expected to impact Baxter's bottom line, analyst sees benefits for Baxter.

He estimated the branded market for injectable Zithromax ranged between $90 million and $100 million last year, up 23 percent from 2004. He projects the generic market for injectable Zithromax will be approximately $40 million to $50 million, and he expects Baxter to have a competitive advantage.

"The launch of azithromycin complements the company's current antibiotic portfolio as well as its packaging and delivery systems technologies," Reicin said.

The agreement "could pave the way for future agreements," he said. "Strategically, this makes sense given the company's current access to hospitals and physician offices. The company has numerous supply contracts with hospitals for injectable products throughout the country, and, presumably, generic Zithromax can be included in these contracts with relatively little effort. As such, the authorized generic business could be an intriguing new strategic opportunity."

In other news at Baxter, the company said a bird-flu-related study it conducted found the production process the company uses to make its plasma-derived products kills the virus.

The world's biggest maker of blood disease treatments said in the study the virus was inactivated through one or more ways -- pasteurization, vapor heating, low pH and solvent detergent. Those are the treatment methods that Baxter uses in making its plasma-derived products.

The products are used to control bleeding and to treat leukemia, immune deficiencies and the blood-clotting-deficiency disease hemophilia.

The bird flu virus is similar in structure to previously identified influenza viruses, the company said. Based on available results from similar viruses, Baxter anticipated the study outcome.

The study was conducted to reassure users of plasma-derived therapies, the company said, citing rising concern over the spread of the virus outside of Asia, worries that the virus might occur in blood more widely than other strains of influenza and fears that the virus could be transmitted through the use of plasma-derived products.

Baxter's history gives it reason to want to reassure patients that it has reacted appropriately to any threat that the bird flu virus could be transmitted through its products. Baxter and other companies agreed in 1997 to pay more than $600 million to settle lawsuits brought on behalf of hemophiliacs who claimed the companies knowingly sold products contaminated with the HIV virus that causes AIDS.

Cook County nurses, who have authorized their union to call a strike if necessary to land a fair contract, will be back at the bargaining table Friday.

Little progress was made in the last negotiating session March 3, said Midwest coordinator for collective bargaining with the

The union represents more than 1,100 nurses who work at 29 county Bureau of Health Services facilities.

The major unresolved issues in the negotiations are heavy work loads of very sick patients, safe staffing, patient care protections, pay parity with other hospitals and maintenance of health care benefits, according to the union.

The nurses, who voted by a 97 percent margin earlier this month to authorize a strike, have since conducted informational picketing at and other county hospitals.

Lake Forest-based a private equity firm focused on the health care industry, said it completed the sale of to for $785 million in cash.

American Medical Instruments Holdings, also based in Lake Forest, is a specialty medical device maker focused on diagnostic, ophthalmologic and wound closure devices.

Vancouver-based Angiotech Pharmaceuticals is a specialty pharmaceutical company that develops treatments for diseases or complications associated with medical device implants, surgery and trauma.

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