PureTech has abandoned its takeover talks with a US rival after concluding that they would have created an ‘extended period of uncertainty’.
The FTSE 250 biotechnology firm said last week’s announcement about the talks with San Francisco-based Nektar Therapeutics gave the impression negotiations were ‘more advanced than they were’.
It went on: ‘Given the early stage of the discussions and the potential for an extended period of uncertainty, these discussions were terminated.’
Deal’s off: FTSE 250 biotechnology PureTech has abandoned takeover talks with US rival Nektar Therapeutics
PureTech shares dropped 6.1 per cent, or 14p, to 214.5p. Despite the end of negotiations, under City rules Nektar can still make an offer for PureTech before 5pm on November 3.
Analysts at broker Peel Hunt were upbeat, saying PureTech already has ‘all the resources available to them to succeed’.
They added the recent weakness in the share price, down 15pc since the discussions were confirmed, provided a ‘good entry point’ for potential investors.
Boston-based PureTech is developing medications for conditions including fibrosis, solid tumours, irritable bowel syndrome and depression.
Nektar, meanwhile, is working on treatments for several types of cancer and autoimmune disorders.
The end of talks comes as the market’s attitude towards deals and new listings cools due to economic uncertainty as well as rising interest rates pushing up the cost of debt.
