BRIEF—PureTech and Nektar merger talks called off

Just days after confirming talks were in progress, UK and USA-based clinical-stage biotech PureTech today announced that it has mutually agreed with Nektar Therapeutics to terminate discussions regarding a possible business combination.

PureTech shares fell as much as 17% on the news, though they partly recovered, being down ~5% at 217.00 pence mid-afternoon.

Discussions with Nektar were announced on October 7 as required by Rule 2 of the UK City Code on Takeovers and Mergers, in response to media speculation.

These discussions were early in nature and the required announcement created the impression that discussions were more advanced than they were.

Given the early stage of the discussions and the potential for an extended period of uncertainty, these discussions were terminated.

Notwithstanding the termination of discussions, PureTech remains in an "offer period" until the expiration of the period set out in the announcement, ie, November 3, for Nektar either to announce a firm intention to make an offer for the company or not.

In a later statement issued by Nektar confirming the pause, the company clarified that, in accordance with regulations, this means that whilst Nektar reserves the right to participate in a future deal, the offer period is now closed.