* 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 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
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)