S&P: Nabi view stable

Standard & Poor's said it revised its outlook on Nabi Biopharmaceuticals to stable from negative following the sale of its biologics unit to Biotest AG for $185 million cash. The B- corporate credit and senior unsecured ratings were affirmed.

The sale of the biologics division - which includes Nabi's only marketed product, the hepatitis B treatment Nabi-HB - will leave Nabi with two vaccines under development and royalty rights to PhosLo, divested in November 2006 for $65 million, and up to $75 million in future royalty and milestone payments.

The agency said the sale is the latest phase of Nabi's strategic restructuring in order to focus on the development of its two vaccines, NicVax and StaphVax. Proceeds from the sale will be used to fund operations, provide substantial research and development funding for the two prospects and fund a recently announced $65 million share repurchase program.

The ratings on Nabi Biopharmaceuticals reflect the company's narrow business focus as a niche developer of vaccines and the cash requirements to commercialize new products, S&P said, adding that these negative factors are only partly mitigated by the currently adequate liquidity.

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