Nektar Therapeutics Up 7% After Selling Royalty Payment Agreements
Shares of Nektar Therapeutics (NASDAQ: NKTR) are up 7% after the company agreed to sell some of its royalty agreements to Royalty Pharma for $124 million.
The company today announced that it agreed to sell to Royalty Pharma its royalties on future sales of CIMZIA, under Nektar's agreement with UCB Pharma, and MIRCERA, under Nektar's agreement with Roche. In consideration for the sale, Royalty Pharma will pay Nektar an aggregate cash payment of $124.0 million.
Nektar intends to use the net proceeds of the transaction towards the repayment of its $215.0 million of convertible debt. For the twelve month period ended December 31, 2011, Nektar recognized $8.3 million in aggregate royalties from net sales of CIMZIA and MIRCERA.
"This transaction demonstrates our ability to unlock unrecognized value in Nektar's legacy collaborations and access significant capital in a non-dilutive transaction," said Howard W. Robin, President and Chief Executive Officer of Nektar. "The proceeds from this sale will strengthen our cash position considerably and we are pleased to have Royalty Pharma as our partner in this transaction."
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.