Nektar and University of Alabama in Huntsville Announce Agreement to Settle Litigation
SAN CARLOS, Calif. & HUNTSVILLE, Ala. (Business Wire) -- Nektar Therapeutics (Nasdaq:NKTR) and the University of
Alabama in Huntsville (UAH) today announced the settlement of UAH's
litigation against Nektar and Dr. Milton Harris, the founder of Nektar
Alabama and a former employee of UAH, in exchange for a total cash
payment of $25 million.
Under the terms of the agreement, Nektar and Dr. Harris have
jointly made an upfront payment totaling $15 million to UAH. In
addition, Nektar will pay UAH the sum of $1 million per year for ten
years. UAH currently plans to apply the funds towards its endowment
and to fund scholarships for the entire campus, including chemistry
and biology programs. In exchange, UAH has agreed to dismiss all
claims related to the Nektar PEGylation patent portfolio and Nektar
has agreed to dismiss all counterclaims.
"We are pleased that we were able to reach an amicable resolution
of this case. This settlement provides a substantial benefit to the
University and will provide numerous opportunities for UAH in the
years to come," said Dr. Frank Franz, President of the University of
Alabama in Huntsville.
"This settlement is in the best interests of Nektar and helps
maintain our focus on improving and expanding our PEGylation business.
We also believe that the support of the University of Alabama in
Huntsville's science and educational missions is consistent with
Nektar's vision and values," said Robert B. Chess, Nektar Chairman and
Acting President and CEO.
About Nektar Advanced PEGylation Technology
Nektar Advanced PEGylation has the potential to improve the safety
and efficacy of therapeutic agents by increasing drug circulation time
in the bloodstream, decreasing immunogenicity and dosing frequency,
increasing bioavailability and improving drug solubility and
stability. It is based on the use of non-toxic polyethylene glycol
(PEG) polymers, which can be attached to most major drug classes,
including proteins, peptides, antibody fragments, small molecules, and
other drugs and is used in eight approved products in the U.S. and/or
Europe today.
About Nektar
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