Alkermes says Air Insulin may affect lung function

NEW YORK Oct 23 (Reuters) - The chairman of Alkermes Inc. (ALKS.O) on Tuesday said its Air Insulin device has compelling convenience advantages over Pfizer Inc's (PFE.N) abandoned Exubera, but said all forms of inhaled insulin will likely have the same tendency to slightly impair lung function.

Pfizer last week said it was abandoning its involvement with Exubera, the first inhaled form of insulin, and returning rights to the product to longtime partner Nektar Therapeutics (NKTR.O).

Industry analysts said Exubera had dismal sales because patients were turned off by the clumsy bong-like device used to administer its powdered insulin and by the drug's tendency to slightly impair lung function.

Alkermes Chairman Richard Pops said in a Reuters interview that his company's experimental Air Insulin, being developed with Eli Lilly and Co. (LLY.N), may have similar effects on lung function.

"We're assuming that pulmonary insulins in that regard are all pretty much the same," he said, but added that a conclusive picture of Air Insulin's safety will emerge after 2-year safety trials conclude in the summer of 2008. (Reporting by Ransdell Pierson)