After Bristol Myers Cuts Ties, Nektar Implements Cost Restructuring

Nektar Therapeutics NKTR announced a new strategic plan to prioritize key research and development efforts and cut 70% of its workforce, including several changes to its executive team.
Dimitry Nuyten, Nektar's Chief Medical Officer, will step down from his position following June 2022. He will be succeeded by Brian Kotzin, Nektar's Head of Immunology.
In June, John Northcott, Nektar's Chief Commercial Officer, who led the pre-commercialization activities for BEMPEG, will depart the Company but will remain as a strategic consulting advisor to the Company through the end of 2022.
Nektar also announced that it is implementing a cost restructuring plan, extending the Company's cash runway into the first half of 2025.
Related: Read Why Did Bristol Myers and Nektar End $3.6B Immuno-Oncology Program.
After accounting for BEMPEG wind-down and restructuring costs, Nektar expects to end the year with approximately $440 million - $450 million in cash and investments.
The Company expects to take charge of $150 million - $160 million, a substantial portion of which will be recorded in Q2.
Price Action: NKTR shares are down 6.46% at $4.42 during the market session on the last check Tuesday.

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