Novartis deal to buy Nektar's pulmonary delivery assets set for year end
Biopharmaceutical company Novartis AG, headquartered in Switzerland, has agreed to buy Nektar Therapeutics" specific pulmonary delivery assets for $115m (Euro 148m) in cash.
Biopharmaceutical company Novartis AG, headquartered in Switzerland, has agreed to buy Nektar Therapeutics" specific pulmonary delivery assets for $115m (Euro 148m) in cash.
The agreement will allow Nektar to concentrate on developing its novel therapeutics using PEGylation and conjugate chemistry-based drug development platforms.
Novartis will assume ownership of certain dry powder and liquid pulmonary formulation and manufacturing assets, including capital equipment and manufacturing facility capital lease obligations.
Nektar president and ceo Howard W. Robin, said: "The transaction also strengthens our balance sheet and significantly reduces expenses. It is a perfect example of our ability to monetize assets that had little future value for Nektar."
The agreement also transfers to Novartis approximately 140 Nektar personnel, as well as certain intellectual property and manufacturing methods. As part of the deal, Nektar will transfer manufacturing and royalty rights to the Tobramycin inhalation powder (TIP) program, already partnered with Novartis.
Nektar, however, retains ownership of its Bayer HealthCare-partnered program NKTR-061 (Amikacin Inhale), scheduled to enter Phase III clinical trials by year-end, and royalties to Ciprofloxacin inhaled powder (CIP), also partnered with Bayer HealthCare. Likewise, Nektar will retain NKTR-063 (inhaled vancomycin), a proprietary program scheduled to enter Phase 2 development in the US early next year, as well as all intellectual property specific to inhaled insulin.
Novartis and Nektar expect to complete the transaction on 31 December 2008.
