Nektar Shares Rise As Partner Gets FDA Approval

SAN CARLOS, Calif. (AP) — Shares of Nektar Therapeutics Inc. jumped Thursday after the Food and Drug Administration approved its partner's rheumatoid arthritis drug Cimzia, setting the biotechnology company up for revenue from a potential blockbuster drug.

The stock gained $1.07, or 21 percent, to reach $6.13 in afternoon trading.

The drug is made by Belgian drug maker UCB using Nektar technology. Under the partnership, Nektar receives manufacturing revenue during research, clinical development, and sales of the drug. It also receives royalties on sales.

Cimzia is already approved to treat Crohn's disease, a gastrointestinal condition. The drug is part of a class of treatments that include Abbott Laboratories' Humira, Johnson & Johnson's Remicade and Wyeth and Amgen's Enbrel. Each are blockbuster products.

Nektar said about 1.3 million people in the U.S. and 5 million people worldwide have rheumatoid arthritis, which is an inflammatory condition.

Meanwhile, shares of Xoma Ltd. jumped 18 cents, or 28.6 percent, to 81 cents per share. The Berkeley, Calif.-based biotechnology company will receive royalty payments from UCB for a technology licensing deal related to Cimzia.