Novartis to acquire Nektar Therapeutics pulmonary business unit, strengthening respiratory drug delivery capabilities
Definitive agreement to acquire Nektar's pulmonary business unit for USD 115 million in cash
Novartis has strengthened its capabilities for developing medicines that can be delivered via the lungs through a definitive agreement to acquire the pulmonary drug delivery business unit of Nektar Therapeutics for USD 115 million in cash.
Important capabilities gained from Nektar, which has approximately 140 associates who will join Novartis and remain in San Carlos, California, include product formulation and delivery expertise along with a broad device platform, according to the company. This transaction excludes Nektar's inhalation programs for insulin, vancomycin, ciprofloxacin and amikacin.
Novartis will utilize these skills to build on existing capabilities and accelerate its pipeline targeting life-threatening diseases such as chronic obstructive pulmonary disease (COPD), asthma and cystic fibrosis as well as the life-cycle management of late-stage development projects that are closer to regulatory submissions. Potential applications will also be assessed in other areas of the Novartis healthcare portfolio.
Novartis has signed a definitive agreement to acquire Nektar's pulmonary business unit for USD 115 million in cash to be financed from the Group's financial resources. Novartis will acquire research, development and manufacturing assets of Nektar's pulmonary business unit, including tangible assets as well as intellectual property and related expertise. As a result of this transaction, future milestones and royalty payments from Novartis to Nektar for the TIP development project would be avoided.
This transaction requires customary regulatory approvals and is expected to be completed by the end of 2008. The pro forma effect of this acquisition will not have a significant impact on the Group's reported net income and cash flow.
Other news from the department business & finance
