It's official: Pfizer is giving up on Exubera [1]. Pulling its plug cost the company $2.8 billion against third-quarter earnings, a charge that sent profits tumbling 77 percent to $761 million. Once a blockbuster hopeful, the inhaled diabetes drug failed to catch on, delivering only $4 million in sales during the last quarter.

Meanwhile, analysts are still hashing over the company's next deal. A Citigroup report--based on conversations with Pfizer management--says the company will be "more transaction oriented" over the next year and a half. But rather than focusing on big buys, such as Amgen or Wyeth [2], the company probably will focus on smaller fry. Biogen Idec and its $23 billion market cap, for instance [3]. The report recommends Biogen and ImClone as good fits.

- see this excerpt from Pfizer's release [4] on Exubera
- see the full financial results [5]
- check out this MSNBC report [6]
- read the WSJ deal speculation [7]

Related Articles:
Who should Pfizer buy? Report [8]
Troubled Pfizer blueprints biotech venture effort. Report [9]
Exubera becoming a big disappointment for Pfizer. Report [10]
UK: Exubera not worth the price. Report [11]
FDA approves Pfizer's inhaled insulin. Report [12]

Read more on: Pfizer [13] | Exubera [14] | Diabetes [15] | Biogen Idec [16] | ImClone [17]