AstraZeneca and Nektar sign drug development agreement

AstraZeneca is to work with US-based biotechnology group Nektar Therapeutics on two drug development programmes for the treatment of constipation.

Under the terms of the deal, AstraZeneca will make an upfront payment of US$125m to Nektar to continue development of NKTR-118, a late-stage investigational product for opioid-induced constipation, and NKTR-119, an early stage programme aimed at delivering products for the treatment of pain without constipation side effects. Nektar developed both programmes using its small molecule advanced polymer conjugate technology.

NKTR-118 has completed a Phase II clinical trial and AstraZeneca expects to complete the design of the Phase III programme shortly. Nektar is eligible to receive up to US$235m for passing certain regulatory milestones, as well as tiered payments of up to US$375m depending on the drug's commercial success.

For NKTR-119, Nektar could receive development and tiered sales milestone payments amounting to US$385m. Nektar will also receive "significant double-digit royalty payments" on NKTR-119 net sales worldwide.

"NKTR-118 is an important late stage programme that has the potential to address a real need for patients," said David Brennan, chief executive of AstraZeneca.

He added that the deal "provides us with the opportunity to apply our deep knowledge and expertise in neuroscience, oncology and gastrointestinal areas of medicine to create real value for patients".

NKTR-118 combines Nektar's advanced small molecule polymer conjugate technology platform with naloxol, a derivative of the opioid-antagonist drug, naloxone.