Full Press Release Details
Reports First Quarter 2025 Financial Results
SAN FRANCISCO, May 8, 2025 -- Nektar
Therapeutics (Nasdaq: NKTR) today reported financial results for the first quarter ended March 31, 2025.
Cash and investments in marketable securities
on March 31, 2025 were $220.7 million as compared to $269.1 million on December 31, 2024. Nektar's cash and marketable securities are
expected to support strategic development activities and operations into the fourth quarter of 2026.
"We are on track to report topline data in June from the Phase
2 study of rezpegaldesleukin in atopic dermatitis," said Howard W. Robin, President and CEO of Nektar. "These data will
be followed by the topline data from the Phase 2 study of rezpegaldesleukin in patients with alopecia areata in December of this year.
The results of both randomized studies will demonstrate the potential of rezpegaldesleukin to provide a new treatment paradigm for patients
with these serious dermatological diseases. As a first-in-class T regulatory cell biologic, rezpegaldesleukin is poised to emerge as an
important novel mechanism to treat millions of patients with chronic autoimmune disorders."
"We are also on track to complete our
IND-enabling work for NKTR-0165, our unique antibody targeting the TNFR2 receptor, that has the potential to be developed as a treatment
for multiple sclerosis, ulcerative colitis and vitiligo," continued Robin. "We are targeting the submission of the IND for NKTR-0165
at the end of this year. Additionally, we are making significant progress on our new bispecific antibody, NKTR-0166. This antibody incorporates
a TNFR2 epitope with a validated antibody target and is advancing into preclinical studies."
Summary of Financial Results
Revenue in the first quarter of 2025 was $10.5
million as compared to $21.6 million in the first quarter of 2024. Revenue has decreased year over year because we no longer recognize
product sales due to the sale of the Huntsville manufacturing facility in December 2024.
Total operating costs and expenses in the
first quarter of 2025 were $55.0 million as compared to $57.1 million in the first quarter of 2024. Operating costs and expenses for the
first quarter of 2025 decreased as compared to 2024 due to the elimination of cost of goods sold following the sale of the Huntsville
manufacturing facility, partially offset by increases in R&D and G&A expenses.
R&D expense in the first quarter of 2025
was $30.5 million as compared to $27.4 million for the first quarter of 2024. R&D expense increased primarily due to an increase in
expense for the development of rezpegaldesleukin, partially offset by a decrease in expense for the development of NKTR-255.
$24.3 million in the first quarter of 2025 and $20.1 million in the first quarter of 2024. G&A expense increased due to an
increase in legal expenses, partially offset by decreases in facilities and stock-based compensation expenses.
In the first quarter of 2025, we began accounting
for our investment in the new portfolio company, Gannet BioChem, under the equity method of accounting which calculates our gain or loss
based on the change in our share of Gannet BioChem's equity each quarter. This resulted in a $4.5 million non-cash loss from the
equity method investment.
Net loss for the first quarter of 2025 was
$50.9 million or $0.24 basic and diluted loss per share as compared to a net loss of $36.8 million or $0.19 basic and diluted loss per
share in the first quarter of 2024. Excluding the $4.5 million non-cash loss from our equity method investment in Gannet BioChem, net
loss, on a non-GAAP basis, for the first quarter of 2025 was $46.4 million or $0.22 basic and diluted loss per share.
Recent Business Highlights
Conference Call to Discuss First Quarter
2025 Financial Results
Nektar management will host a conference call
to review the results beginning at 5:00 p.m. Eastern Time/2:00 p.m. Pacific Time on May 8, 2025.
This 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 8, 2025.
To access the conference call, please pre-register
at Nektar Earnings Call Registration.
All registrants will receive dial-in information and a PIN allowing them to access the live call.
About Nektar Therapeutics
Nektar 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. Nektar's pipeline also includes
a preclinical bivalent tumor necrosis factor receptor type II (TNFR2) antibody and bispecific programs, NKTR-0165 and NKTR-0166, and a
modified hematopoietic colony stimulating factor (CSF) protein, NKTR-422. 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 in San Francisco, California. For further information, visit www.nektar.com and follow Nektar on LinkedIn.
Cautionary Note Regarding Forward-Looking
This press release contains forward-looking
statements which can be identified by words such as: "will," "expect," "develop," "potential,"
"advance," "plan," "target," 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, NKTR-0165,
NKTR-0166, NKTR-422, and NKTR-255. 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,
NKTR-0165, NKTR-0166, NKTR-422 and NKTR-255 are based on preclinical and clinical findings and observations and are subject to change
as research and development continue; (ii) rezpegaldesleukin, NKTR-0165, NKTR-0166, NKTR-422 and NKTR-255 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, NKTR-0165,
NKTR-0166, NKTR-422 and NKTR-255 are in clinical 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 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) a Fast Track designation does not increase the likelihood that rezpegaldesleukin
will receive marketing approval in the United States; (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 14, 2025. 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.
LifeSci Communications
LifeSci Communications
CONDENSED CONSOLIDATED BALANCE SHEETS
| March 31, 2025 | December 31, 2024 (1) | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 38,894 | $ | 44,252 | ||||
| Short-term investments | 179,738 | 210,974 | ||||||
| Other current assets | 11,281 | 6,066 | ||||||
| Total current assets | 229,913 | 261,292 | ||||||
| Long-term investments | 2,019 | 13,869 | ||||||
| Property and equipment, net | 3,162 | 3,411 | ||||||
| Operating lease right-of-use assets | 7,999 | 8,413 | ||||||
| Equity method investment in Gannet BioChem | 7,757 | 12,218 | ||||||
| Other assets | 5,391 | 4,647 | ||||||
| Total assets | $ | 256,241 | $ | 303,850 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | 17,834 | 11,560 | ||||||
| Accrued expenses | 31,254 | 29,972 | ||||||
| Operating lease liabilities, current portion | 21,842 | 19,868 | ||||||
| Total current liabilities | 70,930 | 61,400 | ||||||
| Operating lease liabilities, less current portion | 78,495 | 82,696 | ||||||
| Liabilities related to the sales of future royalties, net | 86,322 | 91,776 | ||||||
| Other long-term liabilities | 6,756 | 7,241 | ||||||
| Total liabilities | 242,503 | 243,113 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders' equity: | ||||||||
| Preferred stock | - | - | ||||||
| Common stock | 19 | 19 | ||||||
| Capital in excess of par value | 3,663,772 | 3,659,867 | ||||||
| Treasury stock | (3,000 | ) | (3,000 | ) | ||||
| Accumulated other comprehensive income (loss) | 39 | 61 | ||||||
| Accumulated deficit | (3,647,092 | ) | (3,596,210 | ) | ||||
| Total stockholders' equity | 13,738 | 60,737 | ||||||
| Total liabilities and stockholders' equity | $ | 256,241 | $ | 303,850 |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share information)
| Three months ended March 31, | ||||||||
| 2025 | 2024 | |||||||
| Revenue: | ||||||||
| Product sales | $ | - | $ | 6,034 | ||||
| Non-cash royalty revenue related to the sales of future royalties | 10,460 | 15,508 | ||||||
| License, collaboration and other revenue | - | 97 | ||||||
| Total revenue | 10,460 | 21,639 | ||||||
| Operating costs and expenses: | ||||||||
| Cost of goods sold | - | 8,534 | ||||||
| Research and development | 30,480 | 27,408 | ||||||
| General and administrative | 24,346 | 20,149 | ||||||
| Restructuring and impairment | 169 | 975 | ||||||
| Total operating costs and expenses | 54,995 | 57,066 | ||||||
| Loss from operations | (44,535 | ) | (35,427 | ) | ||||
| Non-operating income (expense): | ||||||||
| Non-cash interest expense on liabilities related to the sales of future royalties | (4,974 | ) | (5,531 | ) | ||||
| Interest income | 2,874 | 4,220 | ||||||
| Other income (expense), net | 266 | (99 | ) | |||||
| Total non-operating income (expense), net | (1,834 | ) | (1,410 | ) | ||||
| Loss before provision (benefit) for income taxes and equity method investment | (46,369 | ) | (36,837 | ) | ||||
| Provision (benefit) for income taxes | 52 | (35 | ) | |||||
| Loss before equity method investment | (46,421 | ) | (36,802 | ) | ||||
| Gain (loss) from equity method investment | (4,461 | ) | - | |||||
| Net loss | $ | (50,882 | ) | $ | (36,802 | ) | ||
| Basic and diluted net loss per share | $ | (0.24 | ) | $ | (0.19 | ) | ||
| Weighted average shares outstanding used in computing basic and diluted net loss per share | 210,924 | 194,746 |