Nektar, Bayer sign inhaled antibiotic agreement

BOSTON, Aug 6 (Reuters) - Nektar Therapeutics Inc.(NKTR.O: Quote, Profile, Research, Stock Buzz), whose inhaled insulin drug Exubera has failed so far to capture much interest, said on Monday it has signed an agreement with German drugmaker Bayer AG (BAYG.DE: Quote, Profile, Research, Stock Buzz) to jointly develop an inhaled antibiotic.

Bayer will pay $50 million up front, and then as much as $125 million more to Nektar as the companies meet milestones in the clinical and regulatory process. If the product were approved, Bayer and Nektar would co-promote the drug in the United States and share the profit.

Outside the U.S., Nektar would receive tiered performance royalties up to a maximum of 30 percent.

Nektar's product, NKTR-061, is in mid-stage clinical trials to treat serious, hospital-acquired pneumonia. Gram-negative pneumonias are often seen in patients whose immune systems have been depressed, in the elderly and patients undergoing major surgery.

(Reporting by Toni Clarke)

((Editing by Gerald E. McCormick; Reuters Messaging, toni.clarke.reuters.com@reuters.net, 617-367-4165)) Keywords: NEKTAR/

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