Full Press Release Details
SAN FRANCISCO , Feb. 24, 2015 /PRNewswire/ -- Nektar Therapeutics (Nasdaq: NKTR ) today reported its financial results for the fourth quarter and year ended December 31, 2014 .
Cash and investments in marketable securities at December 31, 2014 were $262.8 million as compared to $262.0 million at December 31, 2013 .
"Nektar begins 2015 in a very strong position with the imminent launch of MOVANTIK in the U.S., and the E.U. launch to follow soon thereafter," said Howard W. Robin , President and Chief Executive Officer of Nektar. "As the first approved once-daily oral PAMORA, MOVANTIK provides a new treatment option for a common and potentially debilitating condition experienced by millions of adult patients treated with opioids. MOVANTIK is the first oral small molecule medicine to be created using our proprietary polymer chemistry platform and it represents a tremendous breakthrough for our technology."
"In Q4 2014, our partner Baxter announced the BLA filing for BAX 855, a longer-acting Factor VIII therapy to treat hemophilia A and Baxter is planning for the approval and launch in late 2015," Robin continued. "Our wholly-owned late-stage clinical pipeline continues to advance as well. Enrollment is beginning for the Phase 3 program for NKTR-181 and importantly, we will report topline results from our NKTR-102 Phase 3 study in metastatic breast cancer in March."
Revenue for the year ended December 31, 2014 was $200.7 million as compared to $148.9 million in 2013. The revenue increase was primarily due to the recognition of $105.0 million in milestones in September 2014 upon the approval of MOVANTIK in the U.S. Revenue for the fourth quarter of 2014 was $19.6 million as compared to $31.1 million in the fourth quarter of 2013. This change is primarily due to a decrease in non-cash royalty revenue and license revenue. Revenue included non-cash royalty revenue, related to our 2012 royalty monetization, of $5.2 million and $21.9 million in the fourth quarter and the full year of 2014, respectively, and $9.3 million and $22.1 million in the fourth quarter and the full year of 2013, respectively. This non-cash royalty revenue is offset by non-cash interest expense.
Total operating costs and expenses for the year ended December 31, 2014 was $217.2 million as compared to $269.1 million in 2013. Total operating costs and expenses decreased primarily as a result of lower research and development (R&D) expense. Total operating costs and expenses in the fourth quarter of 2014 were $57.0 million as compared to $67.0 million in the fourth quarter of 2013.
For the year ended December 31, 2014 , R&D expense was $147.7 million as compared to $190.0 million in 2013. R&D expense in the fourth quarter of 2014 was $38.5 million as compared to $48.2 million for the fourth quarter of 2013. R&D expense was lower in the fourth quarter of 2014 and the year ended December 31, 2014 as compared to the same periods in 2013 primarily because of lower costs related to the Phase 3 study of etirinotecan pegol (NKTR-102) in metastatic breast cancer as the study progresses toward completion and the completion of our Phase 2 clinical study for NKTR-181 in the third quarter of 2013. These decreases in R&D expense in 2014 were partially offset by costs for the ongoing Phase 1 study of NKTR-171.
General and administrative (G&A) expense for the year ended December 31, 2014 was $40.9 million as compared to $40.5 million in 2013. G&A expense was $12.2 million in the fourth quarter of 2014 as compared to $9.8 million in the fourth quarter of 2013. Non-cash interest expense incurred in connection with the 2012 royalty monetization was $5.2 million and $20.9 million in the fourth quarter and year ended December 31, 2014 , respectively, as compared to $5.7 million and $22.3 million in the fourth quarter and year ended December 31, 2013 , respectively.
Net loss for the year ended December 31, 2014 was $53.9 million or $0.42 loss per share as compared to a net loss of $162.0 million or $1.40 loss per share for the year ended December 31, 2013 . Net loss for the fourth quarter of 2014 was $45.7 million or $0.35 loss per share as compared to $47.7 million or $0.41 loss per share in the fourth quarter of 2013.
Conference Call to Discuss Fourth Quarter and Year-End 2014 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 today, Tuesday, February 24, 2015 .
This press release and a live audio-only Webcast of the conference call can be accessed through a link that is posted on the home page and Investor Relations section of the Nektar website: http://www.nektar.com . The web broadcast of the conference call will be available for replay through Monday, March 30, 2015 .
To access the conference call, follow these instructions:
Dial: (877) 881.2183 (U.S.); (970) 315.0453 (international) Passcode : 85106606 (Nektar Therapeutics is the host)
In the event that any non-GAAP financial measure is discussed on the conference call that is not described in the press release, or explained on the conference call, related information will be made available on the Investor Relations page at the Nektar website as soon as practical after the conclusion of the conference call.
Nektar Therapeutics has a robust R&D pipeline in pain, oncology, hemophilia and other therapeutic areas. In the area of pain, Nektar has an exclusive worldwide license agreement with AstraZeneca for MOVANTIK™ (naloxegol), the first FDA-approved once-daily oral peripherally-acting mu-opioid receptor antagonist (PAMORA) medication for the treatment of opioid-induced constipation (OIC), in adult patients with chronic, non-cancer pain. The product is also approved in the European Union as MOVENTIG® and is indicated for adult patients with OIC who have had an inadequate response to laxatives. The AstraZeneca agreement also includes NKTR-119, an earlier stage development program that is a co-formulation of MOVANTIK™ and an opioid. NKTR-181, a wholly-owned mu-opioid analgesic molecule for chronic pain conditions, is in Phase 3 development. NKTR-171, a wholly-owned new sodium channel blocker being developed as an oral therapy for the treatment of peripheral neuropathic pain, is in Phase 1 clinical development. In oncology, NKTR-102 is being evaluated in a Phase 3 clinical study (the BEACON study) for the treatment of metastatic breast cancer. In hemophilia, BAX 855, a longer-acting PEGylated Factor VIII therapeutic is in Phase 3 development conducted by partner Baxter . In anti-infectives, Amikacin Inhale is in Phase 3 studies conducted by Bayer Healthcare as an adjunctive treatment for intubated and mechanically ventilated patients with Gram-negative pneumonia.
Nektar's technology has enabled nine approved products in the U.S. or Europe through partnerships with leading biopharmaceutical companies, including AstraZeneca's MOVANTIK™, UCB's Cimzia® for Crohn's disease and rheumatoid arthritis, Roche's PEGASYS® for hepatitis C and Amgen's Neulasta® for neutropenia.
Nektar is headquartered in San Francisco, California , with additional operations in Huntsville, Alabama and Hyderabad, India . Further information about the company and its drug development programs and capabilities may be found online at http://www.nektar.com .
MOVANTIK™ is a trademark and MOVENTIG® is a registered trademark of the AstraZeneca group of companies.
Cautionary Note Regarding Forward-Looking Statements
Contact: Investors Jennifer Ruddock of Nektar Therapeutics 415-482-5585
Media Nadia Hasan of WCG 212-257-6738
| NEKTAR THERAPEUTICS | ||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
| (In thousands) | ||||||||
| (Unaudited) | ||||||||
| ASSETS | December 31, 2014 | December 31, 2013 (1) | ||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ 12,365 | $ 39,067 | ||||||
| Restricted cash | 25,000 | - | ||||||
| Short-term investments | 225,459 | 197,959 | ||||||
| Accounts receivable, net | 3,607 | 2,229 | ||||||
| Inventory | 12,952 | 13,452 | ||||||
| Other current assets | 8,817 | 5,175 | ||||||
| Total current assets | 288,200 | 257,882 | ||||||
| Restricted cash | - | 25,000 | ||||||
| Property, plant and equipment, net | 70,368 | 66,974 | ||||||
| Goodwill | 76,501 | 76,501 | ||||||
| Other assets | 6,552 | 8,170 | ||||||
| Total assets | $ 441,621 | $ 434,527 | ||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ 2,703 | $ 9,115 | ||||||
| Accrued compensation | 5,749 | 14,254 | ||||||
| Accrued expenses | 6,418 | 6,243 | ||||||
| Accrued clinical trial expenses | 7,708 | 16,905 | ||||||
| Interest payable | 6,917 | 6,917 | ||||||
| Capital lease obligations, current portion | 4,512 | 3,536 | ||||||
| Deferred revenue, current portion | 24,473 | 23,664 | ||||||
| Liability related to sale of future royalties, current portion | - | 7,000 | ||||||
| Other current liabilities | 5,567 | 10,587 | ||||||
| Total current liabilities | 64,047 | 98,221 | ||||||
| Senior secured notes | 125,000 | 125,000 | ||||||
| Capital lease obligations, less current portion | 4,139 | 8,049 | ||||||
| Liability related to receipt of refundable milestone payment | - | 70,000 | ||||||
| Liability related to sale of future royalties, less current portion | 120,471 | 121,520 | ||||||
| Deferred revenue, less current portion | 76,911 | 82,384 | ||||||
| Other long-term liabilities | 14,721 | 19,256 | ||||||
| Total liabilities | 405,289 | 524,430 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders' equity (deficit) : | ||||||||
| Preferred stock | - | - | ||||||
| Common stock | 13 | 11 | ||||||
| Capital in excess of par value | 1,824,195 | 1,643,660 | ||||||
| Accumulated other comprehensive loss | (1,567) | (1,181) | ||||||
| Accumulated deficit | (1,786,309) | (1,732,393) | ||||||
| Total stockholders' equity (deficit) | 36,332 | (89,903) | ||||||
| Total liabilities and stockholders' equity (deficit) | $ 441,621 | $ 434,527 |
| NEKTAR THERAPEUTICS | ||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||
| (In thousands, except per share information) | ||||||||||||
| (Unaudited) | ||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||
| December 31, | December 31, | |||||||||||
| 2014 | 2013 | 2014 | 2013 | |||||||||
| Revenue: | ||||||||||||
| Product sales | $ 7,460 | $ 8,040 | $ 25,152 | $ 44,846 | ||||||||
| Royalty revenue | 41 | 118 | 329 | 1,148 | ||||||||
| Non-cash royalty revenue related to sale of future royalties | 5,184 | 9,311 | 21,937 | 22,055 | ||||||||
| License, collaboration and other revenue | 6,866 | 13,677 | 153,289 | 80,872 | ||||||||
| Total revenue | 19,551 | 31,146 | 200,707 | 148,921 | ||||||||
| Operating costs and expenses: | ||||||||||||
| Cost of goods sold | 6,298 | 8,960 | 28,533 | 38,509 | ||||||||
| Research and development | 38,494 | 48,248 | 147,734 | 190,010 | ||||||||
| General and administrative | 12,247 | 9,832 | 40,925 | 40,532 | ||||||||
| Total operating costs and expenses | 57,039 | 67,040 | 217,192 | 269,051 | ||||||||
| Loss from operations | (37,488) | (35,894) | (16,485) | (120,130) | ||||||||
| Non-operating income (expense): | ||||||||||||
| Interest expense | (4,456) | (4,565) | (17,869) | (18,453) | ||||||||
| Non-cash interest expense on liability related to sale of future royalties | (5,163) | (5,665) | (20,888) | (22,309) | ||||||||
| Interest and other income (expense), net | 278 | 100 | 814 | 1,124 | ||||||||
| Total non-operating expense, net | (9,341) | (10,130) | (37,943) | (39,638) | ||||||||
| Loss before (benefit) provision for income taxes | (46,829) | (46,024) | (54,428) | (159,768) | ||||||||
| (Benefit) provision for income taxes | (1,146) | 1,635 | (512) | 2,245 | ||||||||
| Net loss | $ (45,683) | $ (47,659) | $ (53,916) | $ (162,013) | ||||||||
| Basic and diluted net loss per share | $ (0.35) | $ (0.41) | $ (0.42) | $ (1.40) | ||||||||
| Weighted average shares outstanding used in computing basic and diluted net loss per share | 129,334 | 116,259 | 126,873 | 115,732 |
| NEKTAR THERAPEUTICS | ||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||
| (In thousands) | ||||||||||||
| (Unaudited) | ||||||||||||
| Twelve Months Ended December 31, | ||||||||||||
| 2014 | 2013 | |||||||||||
| Cash flows from operating activities: | ||||||||||||
| Net loss | $ (53,916) | $ (162,013) | ||||||||||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||||||
| Non-cash royalty revenue related to sale of future royalties | (21,937) | (22,055) | ||||||||||
| Non-cash interest expense on liability related to sale of future royalties | 20,888 | 22,309 | ||||||||||
| Stock-based compensation | 17,017 | 17,708 | ||||||||||
| Depreciation and amortization | 12,927 | 14,275 | ||||||||||
| Other non-cash transactions | (560) | 664 | ||||||||||
| Changes in operating assets and liabilities: | ||||||||||||
| Accounts receivable, net | (1,378) | 3,576 | ||||||||||
| Inventory | 500 | 4,817 | ||||||||||
| Other assets | (3,294) | 6,423 | ||||||||||
| Accounts payable | (6,359) | 6,199 | ||||||||||
| Accrued compensation | (8,505) | 5,481 | ||||||||||
| Accrued expenses | 273 | (1,915) | ||||||||||
| Accrued clinical trial expenses | (9,197) | (595) | ||||||||||
| Interest payable | - | (166) | ||||||||||
| Deferred revenue | (4,664) | (12,399) | ||||||||||
| Liability related to receipt of refundable milestone payment | (70,000) | 70,000 | ||||||||||
| Other liabilities | (13,801) | 9,164 | ||||||||||
| Net cash used in operating activities | (142,006) | (38,527) | ||||||||||
| Cash flows from investing activities: | ||||||||||||
| Maturities of investments | 247,995 | 319,181 | ||||||||||
| Purchases of investments | (297,251) | (268,068) | ||||||||||
| Sales of investments | 21,661 | 2,887 | ||||||||||
| Purchases of property and equipment | (9,976) | (4,091) | ||||||||||
| Net cash (used in) provided by investing activities | (37,571) | 49,909 | ||||||||||
| Cash flows from financing activities: | ||||||||||||
| Payment of capital lease obligations | (3,536) | (2,992) | ||||||||||
| Issuance of common stock, net of issuance costs | 116,536 | - | ||||||||||
| Repayment of proceeds from sale of future royalties | (7,000) | (3,000) | ||||||||||
| Proceeds from shares issued under equity compensation plans | 46,984 | 8,208 | ||||||||||
| Net cash provided by financing activities | 152,984 | 2,216 | ||||||||||
| Effect of exchange rates on cash and cash equivalents | (109) | 32 | ||||||||||
| Net (decrease) increase in cash and cash equivalents | (26,702) | 13,630 | ||||||||||
| Cash and cash equivalents at beginning of period | 39,067 | 25,437 | ||||||||||
| Cash and cash equivalents at end of period | $ 12,365 | $ 39,067 | ||||||||||
| Supplemental disclosure of cash flow information: | ||||||||||||
| Cash paid for interest | $ 17,445 | $ 17,590 | ||||||||||
| Cash paid for income taxes | $ 964 | $ 1,014 |
SOURCE Nektar Therapeutics