West Concludes Agreement with Nektar Therapeutics; Expects to Recover Investments in Dedicated Assets
LIONVILLE, Pa., Feb. 13 /PRNewswire-FirstCall/ -- West Pharmaceutical Services, Inc. today announced that it has concluded an agreement with Nektar Therapeutics, Inc., relating to the manufacture and assembly of components for the Exubera(R) inhalable insulin device. Production of the device was suspended in October 2007 following Pfizer, Inc.'s decision to discontinue marketing the product, returning the marketing rights to the Company's customer, Nektar. Financial terms of the agreement were not disclosed.
Under the new agreement, West will be reimbursed for facility, inventory, raw materials and personnel costs at levels that are consistent with the Company's previously announced expectations. In order to assure Nektar of a reliable source of supply as it resolves its plans for the Exubera product, West has agreed to maintain the facility for a period of between two and ten months.
West expects to recognize an impairment charge of $12.9 million, in line with its previously disclosed estimate of between $11.0 million and $13.1 million, in the fourth quarter of 2007 for its investment in the Nektar contract.
West will announce its results for the fourth quarter and full year 2007 on February 21, 2008.
About West
West is a global manufacturer of components and systems for injectable drug delivery, including stoppers and seals for vials, and closures and disposable components used in syringe, IV and blood collection systems. The Company also provides products with application to the personal care, food and beverage markets. Headquartered in Lionville, Pennsylvania, West supports its partners and customers from 50 locations throughout North America, South America, Europe, Mexico, Japan, Asia and Australia. For more information, visit West at www.westpharma.com.
wst@fd.com
CONTACT: Michael A. Anderson, Vice President and Treasurer, West,
+1-610-594-3345; or Investors and Financial Media, Evan Smith or Theresa
Kelleher, both of FD, +1-212-850-5600, wst@fd.com
Web site: http://www.westpharma.com/