Nektar to acquire Aerogen for $32 million

By Kimberly N. Alleyne

Stroudsburg, Pa., Aug. 15 - Nektar Therapeutics and Aerogen, Inc. announced Monday that they have signed a definitive merger agreement under which Nektar will acquire Aerogen for $32 million.

"The acquisition of Aerogen broadens Nektar's pulmonary delivery capabilities by adding advanced inhalable liquid drug technology to Nektar's base of leading inhaleable powdered drug technology," said Ajit S. Gill, Nektar president and chief executive officer, in a news release.

Nektar will pay $8 million in cash and $24 million in stock for Aerogen, with the option of paying all in cash. Each share of Aerogen's common stock will be exchanged for a total of $0.75, comprising either $0.1875 in cash and $0.5625 per common share in Nektar common stock or all cash.

Also upon completion of the acquisition, each share of Aerogen A-1 preferred stock will be exchanged for a total of $29.02, comprising either $7.30 in cash and $21.78 in Nektar common stock or all cash.

At any time prior to Sept. 15, Nektar may choose to pay the entire amount in cash.

Aerogen develops products based on its OnQR Aerosol Generator technology to improve the treatment of respiratory disorders in acute care.

Founded in 1990, Aerogen is headquartered in Mountain View, Calif. with a facility in Galway, Ireland. In 2004, Aerogen reported revenue of $6.2 million and a net loss of $10.1 million.

Nektar is based in San Carlos, Calif., and supplies drug delivery technologies.

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