Exhibit 99.1

       Nektar Announces Newly-Created Diabetes Group and General Manager


    SAN CARLOS, Calif.--(BUSINESS WIRE)--July 26, 2005--Nektar
Therapeutics (Nasdaq:NKTR) today announced a newly-created Diabetes
Group and appointed Ajay Bansal, currently the company's Chief
Financial Officer (CFO), as General Manager. This newly created Group
is designed to maximize Nektar's commercial opportunity for Exubera(R)
(inhaled insulin) and more broadly in the diabetes field. The company
is initiating a search for a new CFO to replace Bansal, who will serve
as interim CFO until a replacement is found.
    As General Manager of the Diabetes Group, Bansal will drive
decision making and strategy development in the organization for
initiatives related to Exubera and diabetes. Ajay will be responsible
for overseeing diabetes product decisions, resource allocation,
partner relationships, and the profit and loss of the diabetes area
for Nektar.
    "Exubera represents a tremendous opportunity for Nektar in the
diabetes space. This newly created Group will help Nektar build a
long-term, highly-successful franchise in inhaled insulin and in the
diabetes space," said Ajit Gill, president and CEO of Nektar. "Given
our experience in the development and manufacturing associated with
Exubera, diabetes is clearly a key area for us, and establishing this
Group will be an important step towards our transition to becoming a
more products-oriented company."
    Bansal has more than 18 years of broad pharmaceutical and
biotechnology experience to qualify him for this position, including:
strategic planning, mergers and acquisitions, sales and marketing,
post-merger integration, organizational restructuring, and new product
planning. Before joining Nektar, he was with Capital One Financial
Corp. Prior to Capital One, he was a partner at Mehta Partners, LLC,
where he co-managed a hedge fund, provided financial and strategic
advisory services to biotechnology and pharmaceutical companies, and
conducted investment research for four years. In addition, Bansal has
more than 10 years experience in management roles at Novartis and in
health care consulting at Arthur D. Little, McKinsey & Company, Inc.,
and ZS Associates. Bansal joined Nektar in March 2003.
    "To assure the success of this transition, it is important that we
have the right leader at the helm. Ajay's strong business acumen,
strategic planning skills, ability to drive decision making, and broad
experience in the biopharmaceutical industry makes him an outstanding
choice to lead this important endeavor," concluded Gill.

    About Nektar

    Nektar Therapeutics enables high-value, differentiated
therapeutics with its industry-leading drug delivery technologies,
expertise and manufacturing capabilities. The world's top
biotechnology and pharmaceutical companies are developing new and
better therapeutics using Nektar's advanced technologies and know-how.
Nektar also develops its own products by applying its drug delivery
technologies and its expertise to existing medicines to enhance
performance, such as improving efficacy, safety and compliance.

    This release contains forward-looking statements that reflect
management's current views as to Nektar's business strategy, product
and technology development plans and funding, collaborative
arrangements, clinical trials, and other future events and operations.
These forward-looking statements involve uncertainties and other risks
that are detailed in Nektar's reports and other filings with the SEC,
including its Annual Report on Form 10-K, as amended, for the year
ended December 2004 and its Quarterly Report on 10-Q for the quarter
ended March 31, 2005. Actual results could differ materially from
these forward-looking statements.


    CONTACT: Nektar Therapeutics
             Joyce Strand, 650-631-3138
             Jennifer Ruddock, 650-631-4954