Last updated: April 17, 2023 at 6:03 PM ET
First posted: April 17, 2023 at 5:54 PM ET
Shares of Nektar Therapeutics NKTR rose late Monday after the biotech drug maker said it would cut staff by 60% in San Francisco, where the company is headquartered, and shift its focus to immunotherapy drugs in partnership with Eli Lilly & Co. LLY. Nektar shares rose 7% in the extended session, after closing the regular session 6.3% higher at 98 cents a share. The 60% cut indicates a decrease of about 88 employees in San Francisco, resulting in, as the company reported, about 55 employees. At the end of 2024, Nektar reported 216 employees, of whom 140 were involved in research and development. Nectar…
Nektar Therapeutics
NKTR
Shares rose late Monday after the biotech drugmaker said it would cut staff by 60% in San Francisco, where the company is headquartered, and shift its focus to immunotherapy drugs in partnership with Eli Lilly & Co.
LLY
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Nektar shares rose 7% in the extended session, after closing the regular session 6.3% higher at 98 cents a share. The 60% cut indicates a decrease of about 88 employees in San Francisco, resulting in, as the company reported, about 55 employees. At the end of 2024, Nektar reported 216 employees, of whom 140 were involved in research and development. Nectar also said CFO Gillian Thomsen was “stepping down,” and Sandra Gardiner will serve as acting CFO. Also, Brian Kotzen, Nektar’s chief medical officer, will step down from that position to a consultant role, while Marie Taglieferi will become the new chief marketing officer. The company said it plans to retain the current staff at its manufacturing plant in Huntsville, Alabama, and said it expects the restructuring to be “significantly” complete by June. In the meantime, the company said it will continue with two early-stage immunology drug candidates, one of which it hopes to file with the FDA in 2024, continue its work with Eli Lilly on the atopic dermatitis drug candidate Rezpeg, and research on a drug. “Strategic Development Partner” for NKTR-255 for the treatment of cancer. “The strategic initiative we announced today aims to further streamline our operations and significantly expand our liquidity path through mid-2026,” Howard Rubin, CEO of Nektar, said in a statement. “Although the actions we are taking today are challenging, we are extremely grateful for the contributions of the employees who have left Nektar.” The company reported that it had about $456 million in cash at the end of March, and it expects to reduce its workforce and severance fees of $8 million to save about $30 million annually.