NKTR: Bristol-Myers pays $1.85 B for NKTR-214

https://www.reuters.com/article/us-bristol-myers-nektar/bris…

Bristol-Myers is a smidge optimistic on the potential for NKTR-214 it appears :slight_smile:

Tim

8 Likes

Bristo-Myers is willing to pay 102 per share and yet the stock sells off at the open.
Don’t get it.
mike

1 Like

Here are more details about the deal:

In one of the largest single-drug collaboration deals ever, Nektar will receive $1 billion in cash upfront and Bristol-Myers will purchase about 8.28 million Nektar shares at $102.60 per share, or an equity stake of just under 5 percent of the company. Nektar shares closed at $75.66 on Nasdaq on Tuesday.

The partnership is built around the Nektar drug, NKTR-214, which will be tested in combination with Bristol’s immuno-oncology (IO) drugs Opdivo and Opdivo and Yervoy in 20 cancer indications across nine different tumor types, including melanoma, kidney and lung cancers, following “very encouraging” early data from clinical trials.

Remember that NKTR-214 could work in combination with many checkpoint inhibitors. I would guess that the BMS deal is non-exclusive so NKTR could still partner with others. For this reason, I believe that NKTR will remain an independent company.

Chris

Bristo-Myers is willing to pay 102 per share and yet the stock sells off at the open.
Don’t get it.

Mike,

I think some speculated that BMS would buy NKTR. They are buying 5% of NKTR so they probably won’t be buying NKTR anytime soon. Therefore, the stock is down…temporarily.

Chris

3 Likes

Sold last of EXAS, that actually hurt. Liked the company, liked the report.

Bought Nektar. 1.85 billion is a lot of money and only one of the drugs.

Cheers
Qazulight

Your post made me move. While I didn’t catch the bottom at 74 and change, I did grab some at 77.

I had to wait a minute until my EXAS sold, then buy at the market. In those couple of minutes the price
moved up 2 dollars.

Of course it is over 80 now.

Cheers
Qazulight

1 Like

Thanks for your response Chris, that does make sense.
Mike