Elan Corporation has signed a licence agreement with Sheffield Pharmaceuticals for the development of certain inhaled steroid products for the treatment of respiratory diseases. Under the terms of the agreement, a joint venture formed by the companies will license certain pulmonary NanoCrystal dispersion technology from Elan Pharmaceutical Technologies, a division of Elan, for development of these products.

Sheffield will provide the joint venture with access to certain of its pulmonary delivery systems; Elan will provide funding to Sheffield and the joint venture as part of the agreement.

Inhaled steroids are anti-inflammatory agents designed to address the underlying lung inflammation of asthmatics and chronic obstruction pulmonary disease patients. The worldwide market for inhaled steroids is estimated at $2 billion (€1.9 billion) annually and growing. Under the terms of the transaction, Sheffield will own 80.1 per cent of the joint venture with Elan owning the remainder.