One of the biggest drug delivery stories of 2007 has been the flop of Pfizer#8217;s Exubera#174;, the inhaled insulin product aimed at a multibillion dollar market. This article, adapted from a contribution to PharmaVentures#8217; Winter 2007/2008 Drug Delivery Report, looks back over what happened and what went wrong with the launch, examines what was wrong with the product itself, and assesses the repercussions of the failure #8211; both the consequences of the flop for the companies involved (Pfizer and Nektar), and the regulatory aspects of new therapies. Finally, a number of upcoming inhaled insulin therapies #8211; and their chances of success #8211; are considered in the light of Exubera.