Nektar Therapeutics to Restructure Operations, Slash Workforce by About 70%

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By Maria Armental

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Nektar Therapeutics’s chief medical officer will leave the company as part of a broader reorganization that will reduce staff by about 70%, the company said Monday.

The company estimates a $150 million to $160 million charge from the job cuts and restructuring, with “a substantial portion of which” expected to be booked in the June quarter.

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Dr. Dimitry Nuyten, Nektar’s CMO, is expected to step down from his post following a transition through June 2022 and will be succeeded by Dr. Brian Kotzin, Nektar’s head of immunology.

Dr. Kotzin had previously served as Nektar’s interim CMO.

Also leaving is John Northcott, Nektar’s chief commercial officer, who led the pre-commercialization activities for Bempegaldesleukin, known as bempeg. Mr. Northcott will remain as a strategic consulting adviser through the end of 2022.

Nektar said that the “scale and scope” of the job cuts align with the work. Nektar did preparing for bempegaldesleukin’s distribution and commercial launch.

“Our new operating plan is designed to ensure we have at least three years of cash runway to support the advancement of our key programs through a steady stream of data catalysts that we expect will begin in the second half of 2022,” Chief Executive Howard W Robin said in a statement.

After accounting for bempeg wind-down and restructuring costs, Nektar now expects to end the year with about $440 million to $450 million in cash and investments and no debt on its balance sheet.

Write to Maria Armental at [email protected]

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Credit: www.marketwatch.com /

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