WASHINGTON (dpa-AFX) - Nektar Therapeutics (NKTR) Wednesday announced that it has entered into an agreement with Royalty Pharma, wherein Royalty Pharma will buy the royalties on future sales of CIMZIA and MIRCERA from Nektar Therapeutics.
Nektar Therapeutics has royalty pact for CIMZIA with UCB Pharma, and MIRCERA with Roche. For the twelve month period ended December 31, 2011, Nektar recognized $8.3 million in aggregate royalties from net sales of CIMZIA and MIRCERA.
Royalty Pharma has agreed to pay a sum of $124.0 million towards consideration for the purchase of the two royalties, to Nektar Therapeutics.
Nektar intends to use the net proceeds of the transaction towards the repayment of its $215.0 million of convertible debt.
'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.
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