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).
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