Markets

Nektar Gets Movantik Milestone Payment from AstraZeneca - Analyst Blog

A generic image of a person holding out their hands
Credit: Shutterstock photo

Nektar TherapeuticsNKTR announced that it has received a $100 million milestone payment from AstraZeneca AZN . The milestone payment was triggered by the first commercial sale of the constipation drug, Movantik (EU trade name: Moventig), in the U.S.

We remind investors that in September last year the FDA cleared Movantik for use in adults with chronic non-cancer pain suffering from opioid-induced constipation (OIC), a common side effect of opioid therapy for chronic pain. Movantik is a peripherally acting mu-opioid receptor antagonist (PAMORA).

AstraZeneca and Daiichi Sankyo, Inc. will co-promote Movantik in the U.S.

Moventig has also gained approval in the EU for the treatment of OIC in adults who have had an inadequate response to laxative(s). Nektar is eligible to receive a $40 million milestone payment from AstraZeneca upon first commercial sale of Moventig in any major European country. Nektar will also get royalties on worldwide net product sales and up to $375 million in sales related milestones. The royalty rate in Europe and the rest of the world will begin at 18% and then increase based on sales. We note that AstraZeneca is responsible for all sales and marketing activities for Movantik worldwide.

We also note that Relistor, another drug in the PAMORA class, is approved in the U.S. for the treatment of OIC as well.

Nektar has a Zacks Rank #3 (Hold). Some better-ranked stocks in the health care sector include Lannett Company, Inc. LCI and Cytokinetics, Incorporated CYTK . Both the companies sport a Zacks Rank #1 (Strong Buy).

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

ASTRAZENECA PLC (AZN): Free Stock Analysis Report

CYTOKINETCS INC (CYTK): Free Stock Analysis Report

NEKTAR THERAP (NKTR): Free Stock Analysis Report

LANNETT INC (LCI): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

CYTK NKTR AZN LCI

Other Topics

Stocks

Latest Markets Videos

Zacks

Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

Learn More