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Nektar Therapeutics Announces Agreement with Healthcare Royalty to Sell ADYNOVATE® and MOVANTIK® Royalties for $150 Million
SAN FRANCISCO, Dec. 22, 2020 /PRNewswire/ -- Nektar Therapeutics (NASDAQ: NKTR) today announced that it agreed to sell to entities managed by Healthcare
About this update from Nektar Therapeutics
[{"type":"text","content":"SAN FRANCISCO, Dec. 22, 2020 /PRNewswire/ -- Nektar Therapeutics (NASDAQ: NKTR) today announced that it agreed to sell to entities managed by Healthcare Royalty Management, LLC (HCR) its royalties on future sales of ADYNOVATE, under Nektar's agreement with Baxalta Incorporated, a Takeda company, and MOVANTIK, under Nektar's agreement with AstraZeneca AB. Under the terms of the new Purchase and Sale Agreement, HCR will pay Nektar an aggregate cash payment of $150.0 million by December 31, 2020.\n\n \n \n \n \n \n \n\n \nNektar intends to use the net proceeds of the transaction towards the funding of clinical trials for its early and late stage immune-oncology programs. For the nine-month period ended September 30, 2020, Nektar recognized $30.5 million in aggregate royalties from net sales of ADYNOVATE and MOVANTIK.\n\"This non-dilutive financing strengthens our financial position as we continue to advance our key IL-2 and IL-15 pipeline programs in solid and liquid tumor settings,\" said Howard W. Robin, President and Chief Executive Officer of Nektar. \"We would like to thank HCR for partnering with us on this transaction.\"\nThe new Purchase and Sale Agreement with HCR includes provisions for automatic expiration upon reaching either aggregate royalty payments equal to $210.0 million by the end of 2025 or, if that threshold is not met, aggregate royalty payments of $240.0 million over the life of the agreement. After expiration, all rights to receive the royalties return to Nektar. With the closing of this Agreement in the fourth quarter of 2020, Nektar now expects to end the year with approximately $1.2 billion in cash and investments in marketable securities. \nClarke Futch, Managing Partner & Chairman at HCR, stated: \"We are pleased to have had the opportunity to help Nektar monetize non-core royalty assets as the company continues to fund the development of its pipeline. ADYNOVATE and MOVANTIK are mature, important medicines that HCR is pleased to add to its portfolio.\"\nMorgan Stanley & Co. LLC acted as sole structuring agent to Nektar in connection with the transaction, and Goodwin Procter LLP acted as special counsel to Nektar. Gibson Dunn & Crutcher LLP acted as counsel to HCR.\nAbout Nektar Therapeutics\nNektar Therapeutics is a biopharmaceutical company with a robust, wholly owned R&D pipeline of investigational med...