Nektar Therapeutics has successfully closed the divestiture of specific Nektar pulmonary delivery assets, technology, and intellectual property to Novartis for $115 million in cash. The transaction was completed on December 31, 2008.

With the closing, Novartis assumes ownership of certain dry powder and liquid pulmonary formulation and manufacturing assets, including capital equipment and manufacturing facility lease obligations. The sale also transferred to Novartis approximately 140 Nektar personnel, as well as certain intellectual property and manufacturing methods, including manufacturing and royalty rights to Novartis' Tobramycin inhalation powder (TIP) programme.

Nektar continues to own its Bayer HealthCare-partnered programme NKTR-061 (Amikacin Inhale) and royalties from the Ciprofloxacin inhaled powder programme (CIP), also partnered with Bayer HealthCare. In addition, Nektar retains its NKTR-063 (inhaled vancomycin) programme, as well as all intellectual property specific to inhaled insulin.

J P Morgan acted as exclusive financial advisor to Nektar.

Nektar Therapeutics is a biopharmaceutical company developing novel therapeutics based on its advanced polymer conjugate technology platforms.