This past week, Nektar Therapeutics (Nasdaq: NKTR) offered an uncommon example of victory in court translating into defeat on Wall Street.
Nektar’s shares finished Friday flat, dipping 4% from $59.38 to $57.06 despite a jury siding with the San Francisco biotech over Eli Lilly (NYSE: LLY) in a three-year-old legal dispute over the pharma giant’s terminating a collaboration agreement to co-develop Nektar’s lead pipeline candidate rezpegaldesleukin (rezpeg).
A jury in the Northern District of California awarded Nektar $90 million, plus additional interest to be determined by the court, after agreeing with Nektar that Lilly breached a covenant of good faith and fair dealing implied through the companies’ up-to-$400 million agreement to co-develop rezpeg, initially for autoimmune and other chronic inflammatory conditions.
“We are pleased with the jury’s verdict in Nektar’s favor finding that Lilly breached the implied covenant of good faith and fair dealing in the…
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