Recently, Nektar Therapeutics (NKTR) announced preliminary results from the first stage of phase II study of its experimental ovarian cancer drug, NKTR-102. It has been observed that the drug, tested in women with platinum-resistant ovarian cancer, achieved an overall response rate of 32% and 35% in two dosage schedules – once every 14 days and once every 21 days. Common side effects such as diarrhea and neutropenia were observed during the trial.
Nektar announced that enrollment of patients − 71 in all − in the trial has been completed. Apart from ovarian cancer, NKTR-102 is also being studied in two other mid-stage trials for the treatment of metastatic breast cancer and second-line colorectal cancer.
We believe favorable data from the phase II trial could enable Nektar to enter into suitable partnership programs regarding its development. Many big pharmaceutical companies are under immense pressure to maintain their top line since many of their best selling drugs are likely to lose patent exclusivity in the next few years. So they are on the lookout for attractive candidates in the early to mid stages of development.
Earlier in September 2009, AstraZeneca (AZN) had entered into a licensing deal with Nektar for two of its pipeline candidates, NKTR-118 and NKTR-119. While the former is a phase II candidate, the latter, in its early stage of development, is intended to treat pain without constipation as a side effect. We view the deal as beneficial for both the companies. While the deal has improved Nektar’s financial position, AstraZeneca will be able to strengthen its gastrointestinal franchise on a successful commercialization of the drugs.
In addition to receiving an upfront payment of $125 million for both the candidates, Nektar was suppose to receive funds in the form of milestone payments and double-digit royalty payments on global sales of the drug. Nektar’s financial burden will ease a bit as AstraZeneca takes over the development of both the drugs; the company expects to file a New Drug Application (NDA) for NKTR-118 in 2013.
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