Full Press Release Details
Therapeutics Reports First Quarter 2024 Financial Results
FRANCISCO, May 9, 2024 /PRNewswire/ -- Nektar Therapeutics (Nasdaq: NKTR) today reported financial results for the first quarter ended
and investments in marketable securities at March 31, 2024 were $326.0 million as compared to $329.4 million at December 31, 2023. Nektar's
cash and marketable securities are expected to support strategic development activities and operations into the third quarter of 2026.
the first quarter, we made significant progress with our highly promising immunology and inflammation pipeline," said Howard W.
Robin, President and CEO of Nektar. "REZPEG is advancing in the clinic in our Phase 2b study in patients with atopic dermatitis
and in our Phase 2b study in patients with alopecia areata. Enrollment for both studies is on-track, and we expect to report topline
data from these trials in the first half of 2025. Building out our Treg pipeline, our novel bivalent antibody targeting the TNFR2 receptor
is progressing through IND-enabling studies to support entering the clinic next year."
of Financial Results
in the first quarter of 2024 was $21.6 million as compared to the same $21.6 million in the first quarter of 2023.
operating costs and expenses in the first quarter of 2024 were $57.1 million as compared to $156.3 million in the first quarter of 2023.
Operating costs and expenses for the first quarter of 2023 included a one-time $76.5 million non-cash goodwill impairment charge. Operating
costs and expenses for the first quarter of 2024 further decreased as compared to 2023 due to decreases in restructuring, impairment
and costs of terminated program, as well as decreases in R&D and G&A expense.
expense in the first quarter of 2024 was $27.4 million as compared to $30.5 million for the first quarter of 2023. R&D expense for
the first quarter of 2024 decreased primarily due to a decrease in employee costs and related facilities costs, partially offset by an
increase in expense for the development of rezpegaldesleukin and NKTR-0165, our TNFR2 agonist antibody.
expense was $20.1 million in the first quarter of 2024 as compared to $21.1 million in the first quarter of 2023.
impairment and other costs of the terminated program were $1.0 million in the first quarter of 2024 as compared to $21.2 million in the
first quarter of 2023. Restructuring, impairment and other costs of terminated program decreased primarily due to $13.2 million in non-cash
lease and equipment impairment charges and $5.5 million in severance expense recognized in the first quarter of 2023.
loss for the first quarter of 2024 was $36.8 million or $0.19 basic and diluted loss per share as compared to a net loss of $137.0 million
or $0.73 basic and diluted loss per share in the first quarter of 2023.
Quarter 2024 and Recent Business Highlights
Call to Discuss First Quarter 2024 Financial Results
management will host a conference call to review the results beginning at 5:00 p.m. Eastern Time/2:00 p.m. Pacific Time, May 9, 2024.
press release and live audio-only webcast of the conference call can be accessed through a link that is posted on the Home Page and Investors
section of the Nektar website: http://ir.nektar.com/. The web broadcast of the conference call will be available for replay through June
access the conference call, follow these instructions:
(800) 715-9871 (U.S & Canada)
Therapeutics is a clinical-stage biotechnology company focused on developing treatments that address the underlying immunological dysfunction
in autoimmune and chronic inflammatory diseases. Nektar's lead product candidate, rezpegaldesleukin (REZPEG, or NKTR-358), is a
novel, first-in-class regulatory T cell stimulator being evaluated in two Phase 2b clinical trials, one in atopic dermatitis and one
in alopecia areata. Our pipeline also includes a preclinical candidate NKTR-0165, which is a bivalent tumor necrosis factor receptor
type II agonist antibody. Nektar, together with various partners, is also evaluating NKTR-255, an investigational IL-15 receptor agonist
designed to boost the immune system's natural ability to fight cancer, in several ongoing clinical trials. Nektar is headquartered
Note Regarding Forward-Looking Statements
press release contains forward-looking statements which can be identified by words such as: "will," "expect," "develop,"
"potential," "advance," "anticipate," and similar references to future periods. Examples of forward-looking
statements include, among others, statements regarding the therapeutic potential of, and future development plans for, rezpegaldesleukin
and NKTR-0165. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based
only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, anticipated
events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject
to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control.
Our actual results may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any
of these forward-looking statements. Important factors that could cause our actual results to differ materially from those indicated
in the forward-looking statements include, among others: (i) our statements regarding the therapeutic potential of rezpegaldesleukin
and NKTR-0165 are based on preclinical and clinical findings and observations and are subject to change as research and development continue;
(ii) rezpegaldesleukin and NKTR-0165 are investigational agents and continued research and development for these drug candidates is subject
to substantial risks, including negative safety and efficacy findings in future clinical studies (notwithstanding positive findings in
earlier preclinical and clinical studies); (iii) rezpegaldesleukin is in clinical development and NTKR-0165 is in preclinical development,
and the risk of failure is high and can unexpectedly occur at any stage prior to regulatory approval; (iv) the timing of the commencement
or end of clinical trials and the availability of clinical data may be delayed or unsuccessful due to challenges caused by health epidemics,
including the recent COVID-19 pandemic, regulatory delays, slower than anticipated patient enrollment, manufacturing challenges, changing
standards of care, evolving regulatory requirements, clinical trial design, clinical outcomes, competitive factors, or delay or failure
in ultimately obtaining regulatory approval in one or more important markets; (v) we may not achieve the expected cost savings we expect
from our 2022 corporate restructuring and reorganization plan or our 2023 cost restructuring plan and we may undertake additional restructuring
and cost-saving activities in the future, (vi) patents may not issue from our patent applications for our drug candidates, patents that
have issued may not be enforceable, or additional intellectual property licenses from third parties may be required; and (vii) certain
other important risks and uncertainties set forth in our Quarterly Report on Form 10-K filed with the Securities and Exchange Commission
on March 5, 2024. Any forward-looking statement made by us in this press release is based only on information currently available to
us and speaks only as of the date on which it is made. We undertake no obligation to update any forward-looking statement, whether written
or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.
Wu of Nektar Therapeutics
Rosen of Argot Partners
CONSOLIDATED BALANCE SHEETS
| March 31, 2024 | December 31, 2023 (1) | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 48,642 | $ | 35,277 | ||||
| Short-term investments | 240,596 | 268,339 | ||||||
| Accounts receivable | 3,617 | 1,205 | ||||||
| Inventory, net | 16,238 | 16,101 | ||||||
| Other current assets | 10,743 | 9,779 | ||||||
| Total current assets | 319,836 | 330,701 | ||||||
| Long-term investments | 36,778 | 25,825 | ||||||
| Property, plant and equipment, net | 17,475 | 18,856 | ||||||
| Operating lease right-of-use assets | 17,267 | 18,007 | ||||||
| Other assets | 4,656 | 4,644 | ||||||
| Total assets | $ | 396,012 | $ | 398,033 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | 8,757 | 9,848 | ||||||
| Accrued expenses | 24,281 | 22,162 | ||||||
| Operating lease liabilities, current portion | 19,368 | 19,259 | ||||||
| Total current liabilities | 52,406 | 51,269 | ||||||
| Operating lease liabilities, less current portion | 94,710 | 98,517 | ||||||
| Liabilities related to the sales of future royalties, net | 117,857 | 112,625 | ||||||
| Other long-term liabilities | 4,334 | 4,635 | ||||||
| Total liabilities | 269,307 | 267,046 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders' equity: | ||||||||
| Preferred stock | - | - | ||||||
| Common stock | 19 | 19 | ||||||
| Capital in excess of par value | 3,644,140 | 3,608,137 | ||||||
| Treasury stock | (3,000 | ) | - | |||||
| Accumulated other comprehensive income (loss) | (403 | ) | 80 | |||||
| Accumulated deficit | (3,514,051 | ) | (3,477,249 | ) | ||||
| Total stockholders' equity | 126,705 | 130,987 | ||||||
| Total liabilities and stockholders' equity | $ | 396,012 | $ | 398,033 |
CONSOLIDATED STATEMENTS OF OPERATIONS
thousands, except per share information)
| Three months ended March 31, | ||||||||
| 2024 | 2023 | |||||||
| Revenue: | ||||||||
| Product sales | $ | 6,034 | $ | 4,718 | ||||
| Non-cash royalty revenue related to the sales of future royalties | 15,508 | 16,861 | ||||||
| License, collaboration and other revenue | 97 | 15 | ||||||
| Total revenue | 21,639 | 21,594 | ||||||
| Operating costs and expenses: | ||||||||
| Cost of goods sold | 8,534 | 7,060 | ||||||
| Research and development | 27,408 | 30,469 | ||||||
| General and administrative | 20,149 | 21,081 | ||||||
| Restructuring, impairment and costs of terminated program | 975 | 21,193 | ||||||
| Impairment of goodwill | - | 76,501 | ||||||
| Total operating costs and expenses | 57,066 | 156,304 | ||||||
| Loss from operations | (35,427 | ) | (134,710 | ) | ||||
| Non-operating income (expense): | ||||||||
| Non-cash interest expense on liabilities related to the sales of future royalties | (5,531 | ) | (6,405 | ) | ||||
| Interest income | 4,220 | 4,335 | ||||||
| Other income (expense), net | (99 | ) | (301 | ) | ||||
| Total non-operating income (expense), net | (1,410 | ) | (2,371 | ) | ||||
| Loss before provision for income taxes | (36,837 | ) | (137,081 | ) | ||||
| Provision (benefit) for income taxes | (35 | ) | (63 | ) | ||||
| Net loss | $ | (36,802 | ) | $ | (137,018 | ) | ||
| Basic and diluted net loss per share | $ | (0.19 | ) | $ | (0.73 | ) | ||
| Weighted average shares outstanding used in computing basic and diluted net loss per share | 194,746 | 188,875 |