Nektar, Astrazenca sign licensing agreement

Nektar Therapeutics today said it has entered into a licensing agreement with multinational drug firm Astrazenca for developing two drugs for the treatment of constipation and pain, which could fetch it up to $375 million.     

Under the terms of the agreement, Astrazenca will assume the responsibility for developing two molecules (NKTR-118 and NKTR-119) from the Indian company's portfolio, including the initiation of clinical studies for one of its molecule, Nektar said in a statement.     

Under the agreement, Nektar will receive an upfront payment of $125 million for both compounds and it can get a payment of up to $235 million on achieving certain regulatory milestones.     

The company may get payments of up to $375 million if the product achieves considerable commercial success.     

"Nektar will also be eligible to receive significant double-digit royalty payments on sales of NKTR-118 worldwide," the company said.     

NKTR-118, is being developed for the treatment of constipation using opium-based pain relieving products and NKTR-119 for treatment of pain without constipation. The agreement is, however, subject to review by the US authorities.     

Nektar is headquartered in San Carlos, California and has a research and development facility in India.