Novartis to buy Nektar Therapeutics pulmonary business unit

Novartis has announced the signing of a definitive agreement to acquire the pulmonary business unit of Nektar Therapeutics.

The company states the purchase – at a cost of $115 million (67.1 million pounds) in cash – has strengthened its capacity for the development of medicines that can be delivered via the lungs.

Capabilities gained from Nektar – which has around 140 associates who will join the company and remain in San Carlos, California – include a broad device platform as well as product formulation and delivery expertise, Novartis states.

Joe Jimenez, chief executive officer of Novartis Pharma, the pharmaceutical division of Novartis, states severe respiratory diseases are a “leading cause of mortality” around the globe and also remain a “significant” unmet medical need.

“Through our existing collaborations, we have a high regard for the Nektar team and for their technologies and these capabilities will play an important role in developing our respiratory pipeline,” he adds.

Novartis notes the acquisition requires customary regulatory approvals and it is expected to be finished by the end of this year, adding the pro forma effect of the purchase will “not have a significant impact” on the group’s reported cash flow and net income.

In recent days, the firm announced early findings show the potential for imatinib to treat a life-threatening form of pulmonary artery disease.