Nektar Therapeutics (NKTR)

[SeriousMoney]

Nektar Up on Pfizer Exubera Buyout
AP, Friday January 13, 2:05 pm ET
Nektar Shares Rise As Pfizer Buys Out World Rights to Exubera From Sanofi Aventis http://finance.yahoo.com/q/bc?s=NKTR&t=5d&l=off&z=m&q=l&c=

NEW YORK (AP) -- Shares of drug-delivery technology company Nektar Therapeutics jumped Friday after drug maker Pfizer Inc. said it would pay Sanofi Aventis SA $1.3 billion for global rights to the inhalable insulin the three companies developed.

Nektar shares rose $1.78, or 9.8 percent, to $19.89 in afternoon trading on the Nasdaq at more than seven times their average volume. Shares have traded between $13.32 and $21.52 over the past 52 weeks.

In a research note, investment firm Morgan Stanley said Pfizer's move shows that it is optimistic about the Food and Drug Administration's Jan. 27 decision due date for the product. The firm said the deal will not affect Nektar's 15 percent royalty from sales, but that the deal reflect Pfizer's commitment to the product.

The original due date for an FDA decision was Oct. 27, but the agency said it needed more time to review additional technical chemistry data on Exubera. In September, an FDA advisory panel recommended approval of the dry powder form of insulin that is inhaled rather than injected, but expressed safety concerns about some patients who experienced reduced lung function and coughing. Pfizer has promised to continue studying the drug's safety following approval.

Deutsche Bank agreed the action shows that Pfizer sees Exubera as a major driver for future growth, and expects positive near-term regulatory decisions in the United States and Europe.

The agreement settles legal action started by Pfizer in 2004 with the formation of Sanofi Aventis. Pfizer had originally been working on the product with Aventis, and Pfizer alleged that the merger had resulted in a change of control that violated the original contract.

Shares of Pfizer fell 5 cents to $24.53, and American depositary shares of Sanofi Aventis fell 3 cents to $46.93 on the New York Stock Exchange.

http://biz.yahoo.com/ap/060113/nektar_mover.html?.v=1