PureTech abandons merger talks with US rival Nektar Therapeutics
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British biotech company PureTech abandons merger talks with US rival Nektar Therapeutics
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PureTech has suspended takeover talks with a US rival after it concluded they would have created an “extended period of uncertainty”.
Biotechnology company FTSE 250 said last week’s announcement about talks with San Francisco-based Nektar Therapeutics gave the impression that negotiations were “more advanced than they were.”
It continued: “Given the early stage of the talks and the potential for an extended period of uncertainty, these talks have ended.”
Deal falls through: FTSE 250 biotechnology PureTech halts acquisition talks with US rival Nektar Therapeutics
PureTech shares fell 6.1 percent, or 14p, to 214.5p. Despite the end of the negotiations, Nektar can still make an offer for PureTech before 5pm on November 3, under city rules.
Analysts at broker Peel Hunt were optimistic, saying PureTech already has “all the resources at their disposal to succeed.”
They added that the share price’s recent weakness, down 15 percent since the talks were confirmed, provided a “good entry point” for potential investors.
Boston-based PureTech develops drugs for conditions such as fibrosis, solid tumors, irritable bowel syndrome and depression.
Nektar, meanwhile, is working on treatments for various cancers and autoimmune diseases.
The talks come to an end as the market’s stance on deals and new listings cools due to economic uncertainty and rising interest rates driving up the cost of debt.