Nektar signs up on record-breaking collaboration deal

Rather surprisingly, US biotech firm Nektar Therapeutics (Nasdaq: NKTR) was trading down 4.32% at $72.39 pre-market this morning, even though news had broken that it has entered into a collaboration which, including an equity investment, could be worth a record-breaking $3.6 billion. However, after the market opened, the stock started moving up around 8% to $81.74 by mid-morning.

Nektar has executed a global strategic development and commercialization collaboration with pharma major Bristol-Myers Squibb (NYSE: BMY) for its lead immuno-oncology program, NKTR-214, as B-MS searches for a competitive edge over Keytruda (pembrolizumab) and other rival checkpoint inhibitors.

Under the collaboration, the companies will jointly develop and commercialize NKTR-214 in combination with B-MS’ Opdivo (nivolumab) and Opdivo plus Yervoy (ipilimumab) in more than 20 indications across nine tumor types, as well as potential combinations with other anti-cancer agents from either of the respective companies and/or third parties.