Nektar Climbs On Trial Data And Partnership

NEW YORK (AP) — Nektar Therapeutics on Tuesday said its drug candidate NKTR-102 was effective in early studies as a treatment for ovarian cancer, and said it started a midstage clinical trial.

The results were reported one day after Nektar entered a partnership with AstraZeneca PLC, one of the world's largest drugmakers. Nektar shares rose as much as 11 percent in morning trading.

The San Carlos, Calif., company said it saw positive results from preclinical and early stage testing of NKTR-102 as a treatment for ovarian cancer. It has started enrolling patients in a new study to test two doses of the drug. The research involves patients who have not been helped by standard chemotherapy.

Nektar was up 59 cents, or 6.2 percent, at $10.16 later in morning trading, and earlier reached a two-year high of $10.64. The shares advanced 13.1 percent Monday.

Nektar and AstraZeneca will collaborate on treatments for pain and for constipation caused by opioid pain drugs. In a note to clients, BMO Capital Markets analyst Robert Hazlett valued Nektar's partnership with AstraZeneca at more than $1.5 billion, plus royalties on sales, if the drugs in the collaboration are successful.

Hazlett upgraded shares of Nektar to "Outperform" from "Market Perform," and raised his price target to $12 per share from $7.