Full Press Release Details
FINAL CONFIDENTIAL PRESS RELEASE FOR ISSUANCE
MONDAY NOVEMBER 4, 2024 AT 5:30AM PT, 7:30 AM
Nektar Announces Definitive Agreement with Ampersand
Capital Partners to Sell Its Commercial PEGylation Reagent Manufacturing Business in Alabama
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 -- 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
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
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, future development plans for rezpegaldesleukin, NKTR-0165 and our other drug candidates and whether all 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.
LifeSci Communications