Nektar Therapeutics Reports Fourth Quarter and Full Year 2024 Financial Results

Reports Fourth Quarter and Full Year 2024 Financial Results

SAN FRANCISCO, March 12, 2025 /PRNewswire/

-- Nektar Therapeutics (Nasdaq: NKTR) today reported financial results for the fourth quarter ended December 31, 2024.

Cash and investments in marketable securities

on December 31, 2024 were $269.1 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 fourth quarter of 2026.

"The significant progress we made last year in advancing our immunology pipeline positions us for two value-creating data milestones

in 2025," said Howard W. Robin, President and CEO of Nektar. "With enrollment now complete for the atopic dermatitis and alopecia

areata Phase 2b trials, we are on track to report topline data for rezpegaldesleukin in the second quarter and in the fourth quarter of

this year, respectively. This program is poised to emerge as the first T regulatory cell treatment option to help the millions of patients

battling these chronic autoimmune disorders."

progress on our preclinical immunology programs," continued Robin. "We reported the first data for NKTR-0165, our novel antibody

targeting TNFR2, and unveiled a new bispecific antibody, NKTR-0166. We plan to submit the IND for NKTR-0165 in the second half of this

Summary of Financial Results

Revenue in the fourth quarter of 2024 was $29.2

million as compared to $23.9 million in the fourth quarter of 2023. Revenue for the year ended December 31, 2024 was $98.4

million as compared to $90.1 million in 2023.

Total operating costs and expenses in the

fourth quarter of 2024 were $14.8 million as compared to $57.4 million in the fourth quarter of 2023. Total operating

costs and expenses for the full year 2024 were $203.6 million as compared to $353.8 million in 2023. Operating costs

and expenses for both the fourth quarter and the full year 2024 decreased as compared to 2023 primarily due to a $40.4 million gain from

sale of the Huntsville manufacturing facility in 2024, as well as decreases in restructuring and impairment costs. Operating expenses

for the full year 2024 also decreased as compared to 2023 due to a one-time $76.5 million non-cash goodwill impairment recognized in the

first quarter of 2023.

R&D expense in the fourth quarter of 2024

was $28.7 million as compared to $29.9 million for the fourth quarter of 2023. R&D expense for the year ended December

31, 2024 was $120.9 million as compared to $114.2 million in 2023. R&D expense increased for full year 2024

primarily due to increases in development expenses for rezpegaldesleukin partially offset by decreases in employee and related facilities

costs, as well as development expenses for NKTR-255.

G&A expense was $17.1 million in

the fourth quarter of 2024 and $17.3 million in the fourth quarter of 2023. G&A expense for the full year 2024 was $76.8

million as compared to $77.4 million in 2023. G&A expense remained consistent for the full year 2024 as compared to

the full year 2023. Decreases in employee costs were offset by a reduction of facilities costs allocated to research and development expense

as well as an increase in commercial litigation expense.

Restructuring and impairment costs were $1.4

million in the fourth quarter of 2024 and $15.7 million in the full year 2024, as compared to $2.9 million in

the fourth quarter of 2023 and $52.0 million in the full year 2023. The full year 2024 amount includes $8.3 million in

non-cash lease impairment charges, and $7.4 million in other restructuring costs. The full year 2023 amount includes $7.9

million in severance expense, $35.3 million in non-cash lease impairment charges, and $8.8 million in other restructuring

Net income for the fourth quarter of 2024

was $7.3 million or $0.03 basic and diluted earnings per share as compared to a net loss of $42.1 million or $0.22

basic and diluted loss per share in the fourth quarter of 2023. Net loss for the year ended December 31, 2024 was $119.0

million or $0.58 basic and diluted loss per share as compared to a net loss of $276.1 million or $1.45 basic

and diluted loss per share in 2023. Excluding the $40.4 million gain from sale of the Huntsville manufacturing facility, and the $1.4

million in non-cash restructuring charges, net loss, on a non-GAAP basis, for the fourth quarter of 2024 was $31.8 million or $0.15 basic

and diluted loss per share. Excluding the $40.4 million gain from sale of the Huntsville manufacturing facility, and the $15.7 million in

non-cash restructuring and real estate impairment charges, net loss, on a non-GAAP basis, for the full year 2024 was $143.7 million or $0.70 basic

and diluted loss per share.

2024 and Recent Business Highlights

Conference Call to Discuss Fourth Quarter

2024 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 March 12, 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 April 12, 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

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," 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-Q filed with the Securities and

Exchange Commission on November 8, 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

Vivian Wu of Nektar Therapeutics

LifeSci Communications

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