Nektar collaborates with SFJ Pharma and Merck on bempegaldesleukin

Nektar Therapeutics’ (Nasdaq: NKTR) shares closed up 13.4% at $25.46 yesterday, after the US clinical-stage biopharma company revealed it had signed two collaboration deals.

Nektar announced a financing and co-development collaboration with SFJ Pharmaceuticals to support the development of bempegaldesleukin (bempeg), an investigational CD122-preferential interleukin (IL)-2–pathway agonist. SFJ Pharmaceuticals is a global drug development company backed by Abingworth and Blackstone Life Sciences.

Under the terms of the new agreement, SFJ will fund up to $150 million for the Phase II/III study until its completion. In return, Nektar agrees to pay SFJ success-based annual milestones over a period of seven to eight years, which are contingent on receipt of certain US regulatory approvals for specified indications for bempeg and will begin following completion of the head and neck study that is projected to be in 2024. If bempeg does not receive regulatory approval for one or more of the specified indications, Nektar will not owe any future payments linked to an indication that is not approved.