Nektar receives $17.6 million milestone payment from Affymax

By Lisa Kerner

Charlotte, N.C., July 24 - Nektar Therapeutics Inc. said it received a $17.6 million payment from Affymax, Inc. as part of the companies' 2004 licensing agreement.

Affymax's agreement with Takeda, Inc. to develop and commercialize Affymax's lead product candidate to stimulate production of red blood cells, Hematide, which uses Nektar's Advanced PEGylation Technology, triggered the cash payment.

Hematide is in phase 2b clinical trials for the treatment of anemia, according to a company news release.

Nektar provides Affymax with its Advanced PEGylation Technology to develop Hematide and in return receives manufacturing revenue, milestone, royalty and other payments.

"This payment highlights the value of Nektar PEGylation technology, which is used in eight marketed products and two additional products filed for regulatory approval in the United States and Europe," Nektar chairman and acting chief executive officer Rob Chess said in the release.

"As part of our focus on expanding our PEGylation business, Nektar is identifying and developing our own proprietary products using PEGylation. This includes two early stage programs in our pipeline in the disease areas of oncology and pain."

Nektar Therapeutics is a biopharmaceutical company based in San Carlos, Calif.

Affymax is a Palo Alto, Calif., clinical-stage pharmaceutical company.

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