Nektar signs licensing deal with AstraZeneca, shares up

BANGALORE (Reuters) - Nektar Therapeutics (NKTR.O) said it signed a worldwide licensing deal with AstraZeneca Plc (AZN.L) to develop two of its experimental drug candidates, sending shares of the biopharmaceutical company up as much as 27 percent in premarket trade.

Brean Murray Carret and Co analyst Jonathan Aschoff sees this deal with AstraZeneca as a "hugely positive development for Nektar."

The deal could make Nektar cash flow positive once the drugs get marketing approval, Aschoff added.

Under the agreement, AstraZeneca will develop Nektar's late-stage drug to treat opioid-induced constipation, NKTR-118, and NKTR-119, which is in its early-stage studies to treat pain without the side effects of constipation.

Nektar will receive an upfront payment of $125 million for both drugs and AstraZeneca will bear all costs related to their research and development, global manufacturing and commercialization.

Nektar is also eligible to receive up to $235 million in aggregate payments for NKTR-118 upon the achievement of certain regulatory milestones, and additional tiered sales milestone payments of up to $375 million.

Nektar shares were trading up 19 percent at $10.08 in premarket trade. They closed at $8.46 Friday on Nasdaq.

(Reporting by Anuradha Ramanathan in Bangalore; Editing by Aradhana Aravindan)