UPDATE 1-Nektar to supply polymer to Amgen, to get $50 mln
8:01 am ET 11/02/2010 - Reuters
* Nektar to get $50 mln
* Says to manufacture and supply its polymer materials
* Says Amgen has no minimum purchase commitments
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, used in many applications from industrial manufacturing to medicine.
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, closed at $14.63 Monday on Nasdaq. (Reporting by Krishnkali Sengupta in Bangalore;Editing by Prem Udayabhanu) |
