Nektar in development deal with AstraZeneca worth over $1 billion

Anglo-Swedish drug major AstraZeneca entered into an exclusive worldwide license agreement with California, USA-based Nektar for two drug development programs: NKTR-118, a late-stage investigational product being evaluated for the treatment of opioid-induced constipation; and the NKTR-119 program, an early stage project that is intended to deliver products for the treatment of pain without constipation side effects. Both were developed by Nektar, utilizing its proprietary, small-molecule advanced polymer conjugate technology platform.

Under the deal, Nektar will receive an upfront payment of $125 million for both NKTR-118 and NKTR-119, and will be eligible for other payments making a possible total of $1.12 billion. The US firm's stock leapt 13% to $1.12 per share on this news.

Under the terms of the accord, AstraZeneca will assume the responsibility for the continued development of both the NKTR-118 and NKTR-119 programs, including the initiation of late-stage clinical studies for NKTR-118. The UK firm expects completion of the design of the Phase III program in the near term, and anticipates filing the drug with regulators in 2013. AstraZeneca will also be responsible for global manufacturing and marketing for both programs.