Bayer AG today posted third-quarter profits below analysts' expectations but a source said the company was about to shore up its drugs business with an imminent marketing deal with GlaxoSmithKline Plc.
An industry source said Germany's largest drugs group could sign a co-marketing deal with GSK for its new anti-impotence drug vardenafil in the United States in the coming days. Company officials declined to comment.
Glaxo, which has a powerful sales force and is keen to fill a gap in its pipeline by licensing in late-stage products, has long been seen by analysts as a frontrunner to partner the new Bayer drug.
The two companies have already worked together in marketing the ill-fated cholesterollowering drug Baycol/Lipobay, which Bayer was forced to withdraw on safety grounds in August.
"GSK, with its big sales force and previous relationship with Bayer, are the obvious people to partner this product," said Richard Jarvis, pharmaceuticals analyst with Nomura in London. "It makes sense for both companies."
Bayer, which aims to start selling vardenafil in the second half of next year, will be challenging Pfizer Inc's Viagra and another new drug from Eli Lilly and Co in the fast-growing erectile dysfunction market.