UPDATE 2-Nektar to supply polymer to Amgen, to get $50 mln

Tue Nov 2, 2010 10:18am EDT

* Nektar to get $50 mln

* Says to manufacture and supply its polymer materials

* Says Amgen has no minimum purchase commitments

(Adds details, share movement)

Nov 2 (Reuters) - Nektar Therapeutics (NKTR.O) said it has entered into a non-exclusive agreement to manufacture and supply proprietary polymer material to biotech firm Amgen Inc (AMGN.O).

As per the agreement signed last Friday, Nektar will receive $50 million from Amgen for the supply of certain quantities of polymer material, which is used in a drug made by Amgen called Neulasta.

Neulasta is prescribed to reduce the risk of infection in patients receiving strong chemotherapy that decreases the number of infection-fighting white blood cells.

Nektar said in case it fails to supply the required materials, Amgen will have the right to access the facility for the purpose of manufacturing the polymer material solely.

Amgen has no minimum purchase commitments and Nektar is entitled to receive additional payments if Amgen orders more than specified quantities.

Nektar's shares, which have gained about 50 percent since it reported promising results of its experimental ovarian cancer drug in January, were trading up about a percent at $14.70 Tuesday morning on Nasdaq.

The shares touched a high of $14.92 earlier in the day. (Reporting by Krishnkali Sengupta and Rajarshi Basu in Bangalore;Editing by Prem Udayabhanu)