Healthcare companies PureTech and Nektar scrap merger plans
Healthcare company PureTech and US biotech firm Nektar have scrapped plans to merge, just days after discussions between the companies were made public.
The two firms were understood to be in very early talks regarding a potential tie-up on Friday last week, but confirmed today that those talks have been terminated.
PureTech said the required disclosure under UK takeover rules gave the impression talks were more advanced than they really were.
The FTSE 250-listed company works on researching and developing new ways of administering medicines, enabling them to be targeted more efficiently or given orally, for example.
Shares in the company dropped as much as 17.7% to 212p on Friday after news of its potential merger with Nektar was announced.
On Tuesday morning, its stock price had recovered to 222p.
Nektar said while it reserves the right to participate in a future deal, the offer period is now closed.