PureTech Health (LSE:PRTC, NASDAQ:PRTC, OTC:PTCHF) PLC and Nektar Therapeutics (NASDAQ:NKTR) said they have mutually agreed to terminate discussions regarding a possible combination of the two companies.
The talks were first announced on October 7, 2022, in response to press speculation. The announcement was a requirement under the UK City Code on Takeovers and Mergers.
PureTech said although the discussions were “early in nature”, 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, the biotherapeutics company said in today’s statement.
PureTech noted that, despite the termination of talks, under the rules it remains in an ‘offer period’ until the expiration of that period on November 3, 2022, by which time Nektar according to the City Code must announce its intention on whether to make an offer.
PureTech shares dropped 4.8% to 217.50p in midmorning trade.