US-based Nektar Therapeutics has signed a definitive agreement to divest its Huntsville, Alabama manufacturing facility and associated reagent supply business to private equity firm Ampersand Capital Partners in a $90m deal.
Following the deal’s closure, the Huntsville facility will be transitioned into a standalone entity under the Ampersand Capital Partners portfolio.
Spread over 124,000ft², the manufacturing facility supports commercial supply chains for PEGylated therapeutics globally.
Post-acquisition, the employees at the site will be offered positions at the new portfolio company.
The divestiture is part of Nektar’s plans to streamline its operations and focus on core research and development programmes in immunology.
The deal value comprises $70m in cash and a $20m retained equity position for Nektar in a new Ampersand portfolio company.
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Ampersand will also invest further growth equity capital into the newly created entity.
Nektar Therapeutics president and CEO Howard Robin stated: “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 company will sign manufacturing supply agreements with the new portfolio company to secure its PEGylation reagent needs for rezpegaldesleukin and other pipeline programmes.
Upon completion of the sale, Nektar will appoint a board member to the new portfolio company.
The sale, which is not contingent on financing, is expected to close by 2 December 2024.
Post-transaction, Nektar will hold all rights to existing and future royalty streams and milestones associated with PEGylated product licence agreements.
Ampersand Capital Partners general partner David Anderson stated: “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.”
