Agreement with Daiichi Sankyo
In May 2016, Nektar Therapeutics (NKTR) entered into a collaboration and licensing agreement with Daiichi Sankyo, under which Nektar granted exclusive commercialization rights for its product candidate, Onezeald, to Daiichi Sankyo in Europe.
Onezeald is a long-acting topoisomerase-1 inhibitor in clinical development for treating adult patients with advanced breast cancer. Nektar retains rights to the drug in all countries outside Europe. Daiichi paid Nektar $20 million up front in August 2016. Additionally, Nektar is eligible to receive up to $60 million in regulatory and commercial milestones.
In October 2017, Nektar agreed to terminate its license and supply agreement with Ophthotech (OPHT), which was entered in September 2006. This agreement was for Nektar’s proprietary PEGylation technology for developing Fovista.
The agreement was terminated because Ophthotech’s three Phase 3 studies evaluating the superiority of Fovista therapy in combination with Lucentis therapy for treating wet age-related macular degeneration failed to achieve the primary endpoints. Under the agreement, Nektar received $32.5 million. Nektar expects to recognize deferred revenue of $18 million from the agreement in 4Q17.
In September 2016, Nektar entered into a collaboration agreement with Bristol-Myers Squibb (BMY), under which both companies agreed to conduct Phase 1 and 2 clinical trials to evaluate Nektar’s NKTR-214 and Bristol-Myers Squibb’s Opdivo as a potential combination treatment for five tumor types across eight indications.
Under the agreement, Nektar will sponsor each trial, and Bristol Myers Squibb will be responsible for 50% of third-party contract research costs. Ownership and global commercial rights for NKTR-214 remain solely with Nektar.
Nektar Therapeutics makes up ~0.48% of the iShares Russell 2000 ETF (IWM). In the next part of this series, we’ll take a look at Nektar Therapeutics’ financial performance.