Nektar to cut over 500 jobs following cancer drug failure
(Reuters) – Nektar Therapeutics stated on Monday it will lay off about 70% of its workforce, or greater than 500 staff, after stopping the event of its key most cancers drug earlier within the month.
The corporate scrapped all scientific trials of the drug, bempegaldesleukin, together with these together with Bristol Myers Squibb Co’s most cancers drug Opdivo, after the remedy failed to satisfy the principle purpose in a number of research.
The layoffs are anticipated to end in a cost of between $150 million and $160 million, most of which might be recorded within the second quarter, Nektar stated. Its chief medical officer and chief commerical officer would additionally step down.
Shares of the corporate have been 3% decrease in prolonged buying and selling.
Nektar stated the restructuring would assist be certain that it has sufficient capital to fund the event of medicine that it considers “most impactful” to its future.
These embrace NKTR-358, an experimental therapy for autoimmune and inflammatory illnesses that’s being developed in partnership with Eli Lilly, and NKTR-255, which is being studied in scientific trials in sufferers with head and neck and colorectal most cancers.
The corporate expects to finish the yr with about $440 million to $450 million in money and investments and no debt.
(Reporting by Amruta Khandekar; Modifying by Aditya Soni)
