Bayer HealthCare and Nektar Therapeutics Collaborate to Develop Inhale

    Business Editors/Health/Medical Writers
    Ninth Annual Drug Delivery Partnerships Conference
    BIOWIRE2K

    LEVERKUSEN, Germany & SAN CARLOS, Calif.--(BUSINESS WIRE)--Jan. 25, 2005--

    Novel Form of Ciprofloxacin to Treat Cystic Fibrosis
    Lung Infections

    Bayer HealthCare AG and Nektar Therapeutics (Nasdaq:NKTR) today announced a new collaboration to develop an inhaleable powder formulation of a novel form of Ciprofloxacin (Cipro) to treat chronic lung infections caused by Pseudomonas aeruginosa (P. aeruginosa) in cystic fibrosis patients. The announcement was made at the Ninth Annual Drug Delivery Partnerships Conference in San Diego, Calif., sponsored by The Institute for International Research, January 24-26, 2005.
    Under the terms of the collaboration, Nektar will be responsible for formulation of the dry powder and development of the inhalation system, as well as clinical and commercial manufacturing of the drug formulation and device combination. Bayer will be responsible for the clinical development and worldwide commercialization of the system. Nektar will receive funding for preclinical development, milestone payments, and royalty payments when the product is commercialized.
    "This is an exciting new R&D partnership," said Dr. Horst Fischer, Bayer HealthCare's Global Project Leader for Ciprofloxacin. "Nektar's pulmonary technology offers clear benefits to treating the lungs via inhalation with a novel form of Cipro. We aim to provide cystic fibrosis patients with a new and convenient therapy for the management of P. aeruginosa infections to improve the standard of care."
    "Our collaboration with Bayer is an outstanding opportunity for Nektar to apply our pulmonary technology to a leading antibiotic product for local treatment of the lung," said Ajit Gill, Nektar President and Chief Executive Officer. "We look forward to a continuing and successful partnership with Bayer."
    P. aeruginosa is the most common pathogen in patients with cystic fibrosis with the vast majority becoming chronically colonized with this organism, resulting in repeated cycles of lung inflammation and consequent deterioration in lung function. Cipro is a potent anti-pseudomonal quinolone antibiotic that is currently available in oral and intravenous (IV) formulations and has been successfully used in the management of acute exacerbation of P. aeruginosa infections in patients with cystic fibrosis.

    About Bayer HealthCare AG

    Bayer HealthCare AG, a subgroup of Bayer AG (NYSE:BAY) with sales of approximately EUR 8.9 billion in 2003, is one of the world's leading, innovative companies in the health care and medical products industry. The company combines the global activities of the divisions Animal Health, Biological Products, Consumer Care, Diagnostics, Diabetes Care and Pharmaceuticals. 34,600 people are employed by Bayer HealthCare worldwide. Bayer's aim is to discover, manufacture and market innovative products that will improve human and animal health worldwide. Bayer products enhance well-being and quality of life by diagnosing, preventing and treating disease.

    About Nektar Therapeutics

    Nektar Therapeutics enables the development of differentiated pharmaceutical products using its advanced proprietary drug delivery technologies and services. Nektar's technological, clinical and market analysis expertise allow it to identify, develop and offer to partners new product opportunities, solve their development challenges, and realize the full potential of their therapeutics from new molecular entities to life-cycle management. Additional information is available at http://www.nektar.com.

    This release contains forward-looking statements that reflect the current views of Nektar's management as to future products, product and technology development, collaboration arrangements, clinical trials and other future events and operations. These forward-looking statements involve uncertainties and other risks that are detailed in reports and other filings with the Securities and Exchange Commission, including Nektar's Annual Report on Form 10-K, as amended, for the fiscal year ended December 31, 2003 and its Quarterly Report on 10-Q for the quarter ended September 30, 2004. These documents identify important factors that could cause the company's actual performance to differ from current expectations, including the outcome of clinical trials, regulatory review, manufacturing capabilities, and marketing effectiveness.
    This news release contains forward-looking statements based on current assumptions and forecasts made by Bayer Group management. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. These factors include those discussed in Bayer's public reports filed with the Frankfurt Stock Exchange and with the U.S. Securities and Exchange Commission (including Bayer's Form 20-F). The company assumes no liability whatsoever to update these forward-looking statements or to conform them to future events or developments.

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CONTACT: For Nektar Therapeutics: Joyce Strand, 650-631-3138 Jennifer Ruddock, 650-631-4954 or For Bayer HealthCare: Christina Sehnert, 49 214 30 66102

KEYWORD: CALIFORNIA GERMANY INTERNATIONAL EUROPE INDUSTRY KEYWORD: MEDICAL PHARMACEUTICAL BIOTECHNOLOGY TRADESHOW PRODUCT MARKETING AGREEMENTS SOURCE: Nektar Therapeutics

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