10:36 AM EST, 11/04/2024 (MT Newswires) -- Nektar Therapeutics ( NKTR ) shares were up over 16% in recent Monday trading after the company said it agreed to sell its Huntsville, Alabama, manufacturing facility and PEGylation reagent supply business to Ampersand Capital Partners for $90 million.

The consideration comprises $70 million in cash and a $20 million equity position in a newly created Ampersand portfolio company that will house the Huntsville-based facility, according to the statement.

In addition, Nektar said it will sign manufacturing supply agreements with the new Ampersand company for its PEG reagent needs.

The deal is expected to close by Dec. 2 and Nektar said it will retain all rights to current and future royalty streams and milestones related to its existing PEGylated product license deals.

Nektar Chief Executive Howard Robin said the sale streamlines the company's operations and extends its cash runway into Q4 2026.

Price: 1.43, Change: +0.20, Percent Change: +16.26