Huntsville-based facility to be spun out as
standalone Ampersand portfolio company.
Nektar to receive $90
million in total consideration for the business, comprised
of $70 million in cash and
$20 million equity ownership in new
portfolio company.
Strategic divestiture allows Nektar to
streamline its operations and continue its strategic focus on the
development of core R&D programs in immunology.
SAN FRANCISCO, Nov. 4, 2024 /PRNewswire/ -- Nektar
Therapeutics (Nasdaq: NKTR), a global biotechnology company
focused on the discovery and development of novel therapies to
treat autoimmune disorders, today announced that it has entered
into a definitive agreement to sell its Huntsville, Alabama manufacturing facility and
reagent supply business to Ampersand Capital Partners, a
Boston-based private equity firm
with a decades-long track record of investing in life sciences and
healthcare companies, including contract manufacturing and pharma
services businesses.
Ampersand has agreed to acquire Nektar's commercial-scale
manufacturing facility and PEGylation reagent supply business for a
total consideration of $90 million,
comprised of $70 million in cash
proceeds and $20 million in a
retained equity position for Nektar in a newly-created Ampersand
portfolio company. Ampersand has also committed to invest
additional growth equity capital into the new portfolio company.
Following the closing of the transaction, Nektar will be entitled
to appoint a representative to the board of the new Ampersand
portfolio company.
The Huntsville site is a
124,000 square foot, commercial-scale specialized manufacturing
facility with a strong history of supporting commercial supply
chains for PEGylated therapeutics across global markets. The
facility has several commercial-scale supply chain contracts with
leading pharmaceutical companies. All of Nektar's employees at the
Huntsville facility will be
offered employment at the new portfolio company, ensuring
continuity in the high-quality manufacturing and PEGylation
expertise that longstanding customers trust and rely on.
"This sale streamlines Nektar's operations as we continue to
focus on the future success and clinical advancement of
rezpegaldesleukin and our other antibody-based immunology pipeline
assets, including our TNFR2 antibody and bispecific programs," said
Howard W. Robin, President and CEO
of Nektar Therapeutics. "We believe Ampersand is an optimal
partner to lead the manufacturing activities at the Huntsville facility. Importantly, Ampersand's
commitment to investing in the plant's business will help ensure
that Nektar's existing commercial customers of PEGylation reagents
will continue to be well served and will also provide uninterrupted
access to a reliable supply of PEGylation reagents for Nektar's
needs. The sale also further extends Nektar's cash runway into the
fourth quarter of 2026."
Nektar and the new Ampersand portfolio company will be entering
into manufacturing supply agreements to meet Nektar's PEG reagent
needs for rezpegaldesleukin and certain pipeline programs.
"We were immediately impressed with the world-class PEGylation
reagent manufacturing capabilities at this facility," said
David Anderson, General Partner,
Ampersand Capital Partners. "The Huntsville site and its employees have played
an important role in the development of significant FDA-approved
PEGylated therapeutic medicines. We look forward to investing in
and growing the site as a stand-alone manufacturing business
dedicated to serving existing and new customers."
The sale is not subject to financing contingencies. The
transaction will be subject to customary closing conditions and
costs and is expected to close by December
2, 2024. Following the closing, Nektar will retain all
rights to current and future royalty streams and milestones related
to existing PEGylated product license agreements.
UBS Investment Bank acted as exclusive financial advisor and
Sidley Austin LLP served as legal advisor to Nektar Therapeutics.
Goodwin Procter LLP acted as legal advisor to Ampersand Capital
Partners.
About Nektar Therapeutics
Nektar Therapeutics is a clinical-stage biotechnology company
focused on developing treatments that address the underlying
immunological dysfunction in autoimmune and chronic inflammatory
diseases. Nektar's lead product candidate, rezpegaldesleukin
(REZPEG, or NKTR-358), is a novel, first-in-class regulatory T cell
stimulator being evaluated in two Phase 2b clinical trials, one in atopic dermatitis and
one in alopecia areata. Our pipeline also includes a preclinical
candidate NKTR-0165, which is a bivalent tumor necrosis factor
receptor type II agonist antibody. Nektar, together with various
partners, is also evaluating NKTR-255, an investigational IL-15
receptor agonist designed to boost the immune system's natural
ability to fight cancer, in several ongoing clinical trials. Nektar
is headquartered in San Francisco,
California. For further information, visit www.nektar.com
and follow us on LinkedIn.
About Ampersand Capital Partners
Ampersand Capital Partners, founded in 1988, is a middle-market
private equity firm with $3 billion
of assets under management, dedicated to growth-oriented
investments in the healthcare sector. With offices in Boston, MA, and Amsterdam, Netherlands, Ampersand leverages a
unique blend of private equity and operating experience to build
value and drive long-term performance alongside its portfolio
company management teams. Ampersand has helped build numerous
market-leading companies across each of the firm's core healthcare
sectors. For additional information,
visit ampersandcapital.com or follow us
on LinkedIn.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements which
can be identified by words such as: "will," "expect," "develop,"
"extend," "advance," "anticipate," "can," and similar references to
future periods. Examples of forward-looking statements include,
among others, statements regarding the therapeutic potential of,
and future development plans for rezpegaldesleukin, NKTR-0165, and
our other drug candidates, and whether all the closing
conditions of the announced definitive agreement will be
met. Forward-looking statements are neither historical facts
nor assurances of future performance. Instead, they are based only
on our current beliefs, expectations and assumptions regarding the
future of our business, future plans and strategies, anticipated
events and trends, the economy and other future conditions. Because
forward-looking statements relate to the future, they are subject
to inherent uncertainties, risks and changes in circumstances that
are difficult to predict and many of which are outside of our
control. Our actual results may differ materially from those
indicated in the forward-looking statements. Therefore, you should
not rely on any of these forward looking statements. Important
factors that could cause our actual results to differ materially
from those indicated in the forward-looking statements include,
among others: (i) our statements regarding the therapeutic
potential of rezpegaldesleukin, NKTR-0165, and our other drug
candidates are based on preclinical and clinical findings and
observations and are subject to change as research and development
continue; (ii) rezpegaldesleukin, NKTR-0165, and our other drug
candidates are investigational agents and continued research and
development for these drug candidates is subject to substantial
risks, including negative safety and efficacy findings in future
clinical studies (notwithstanding positive findings in earlier
preclinical and clinical studies); (iii) rezpegaldesleukin,
NKTR-0165, and our other drug candidates are in preclinical and
clinical development, and the risk of failure is high and can
unexpectedly occur at any stage prior to regulatory approval; (iv)
the timing of the commencement or end of clinical trials and the
availability of clinical data may be delayed or unsuccessful due to
regulatory delays, slower than anticipated patient enrollment,
manufacturing challenges, changing standards of care, evolving
regulatory requirements, clinical trial design, clinical outcomes,
competitive factors, or delay or failure in ultimately obtaining
regulatory approval in one or more important markets; (v) patents
may not issue from our patent applications for our drug candidates,
patents that have issued may not be enforceable, or additional
intellectual property licenses from third parties may be required;
and (vi) certain other important risks and uncertainties set forth
in our Quarterly Report on Form 10-Q filed with the Securities and
Exchange Commission on August 9,
2024. Any forward-looking statement made by us in this press
release is based only on information currently available to us and
speaks only as of the date on which it is made. We undertake no
obligation to update any forward-looking statement, whether written
or oral, that may be made from time to time, whether as a result of
new information, future developments or otherwise.
Contact:
For Investors:
Vivian
Wu
Nektar Therapeutics
628-895-0661
For Media:
Madelin
Hawtin
LifeSci Communications
603-714-2638
mhawtin@lifescicomms.com
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SOURCE Nektar Therapeutics