Bayer HealthCare, Nektar Therapeutics to Codevelop Pneumonia Drug

August 6, 2007

Bayer HealthCare and Nektar Therapeutics announced that the two companies have agreed to develop and commercialize NKTR-061 for adjunctive treatment of Gram-negative pneumonias.

The therapy would utilize Nektar’s proprietary pulmonary technology to deliver a specially-formulated amikacin, an aminoglycoside antibiotic, for inhalation deep into the lung.

As part of this agreement, Nektar said it will receive milestone payments of a maximum of $175 million associated with the successful development and commercialization of NKTR-061. This includes an upfront payment of $50 million, the company added.

Subsequent to the successful clinical and regulatory development of the product, the companies said they have agreed to copromote the product in the U.S. and to share profits.

Under the terms of the agreement, Bayer HealthCare is responsible for the global clinical development, regulatory strategy, manufacturing and marketing of the product, with Nektar participating in all aspects of decision-making and governance, the companies added.