Bayer Inks $175 Million R&D Agreement With Nektar

Bayer Healthcare inked an R&D agreement, potentially worth $175 million, for Nektar Therapeutics’ inhaled pneumonia treatment NKTR-061, an aminoglycoside antibiotic, the companies announced Aug. 6.

Under the terms of the agreement, Bayer will pay Nektar $50 million upfront and an additional $125 million in milestone payments associated with the successful development and commercialization of NKTR-061 (inhaled amikacin) for the treatment of gram-negative pneumonias.

If the inhaled antibiotic is approved, the firms will co-promote NKTR-061 in the U.S., and Bayer will handle international sales of the product, paying Nektar a tiered royalty structure capped at 30 percent. In addition, Bayer will be responsible for clinical development, regulatory strategy, manufacturing and marketing, while Nektar will participate in all decisionmaking, the firms said.