Full Press Release Details
Reports Fourth Quarter and Year-End 2023 Financial Results
SAN FRANCISCO, March
4, 2024 /PRNewswire/ -- Nektar Therapeutics (Nasdaq: NKTR) today reported financial results for the fourth quarter and full year ended
investments in marketable securities at December 31, 2023, were $329.4 million as compared to $505.0 million at December 31, 2022.
Nektar's cash and marketable securities are expected to support strategic
development activities and operations into the third quarter of 2026.
that the progress that we have made in the past nine months puts Nektar in a strong position to advance our highly promising
immunology and inflammation pipeline programs," said Howard W. Robin, President and CEO of Nektar. "We are looking
forward to multiple potential value-creating data readouts for REZPEG in the first half of 2025 in both atopic dermatitis and
alopecia areata. As we build our pipeline in immunology, we are also conducting
IND-enabling studies for NKTR-0165, our novel agonist antibody targeting TNFR2."
Summary of Financial
Revenue in the fourth
quarter of 2023 was $23.9 million as compared to $22.0 million in the fourth quarter of 2022. Revenue for the year ended December 31,
2023 was $90.1 million as compared to $92.1 million in 2022.
Total operating costs
and expenses in the fourth quarter of 2023 were $57.4 million as compared to $74.5 million in the fourth quarter of 2022. Total operating
costs and expenses for the full year 2023 were $353.8 million as compared to $468.2 million in 2022. Operating costs and expenses for
both the fourth quarter and the full year 2023 decreased as compared to 2022 primarily due to decreases in research and development expenses,
general and administrative expense and restructuring, impairment and costs of terminated program, partially offset by $76.5 million in
non-cash goodwill impairment recorded in the first quarter of 2023.
fourth quarter of 2023 was $29.9 million as compared to $34.7 million for the fourth quarter of 2022. R&D expense for the year ended
December 31, 2023 was $114.2 million as compared to $218.3 million in 2022. R&D expense decreased for full year 2023 primarily due
to the wind down of the bempegaldesleukin program.
G&A expense was $17.3
million in the fourth quarter of 2023 and $21.9 million in the fourth quarter of 2022. G&A expense for the full year 2023 was $77.4
million as compared to $92.3 million in 2022. G&A expense decreased for the full year 2023 primarily due to the wind down of the bempegaldesleukin
Restructuring, impairment
and other costs of the terminated program were $2.9 million in the fourth quarter of 2023 and $52.0 million in the full year 2023, as
compared to $11.6 million in the fourth quarter of 2022 and $135.9 million in the full year 2022. The full year 2023 amount includes $7.9
million in severance expense, $35.3 million in non-cash lease impairment charges, $5.5 million for clinical trial and related
employee compensation costs for the wind down of the bempegaldesleukin program, and $3.3 million in other restructuring costs. The full
year 2022 amount includes $30.9 million in severance expense, $65.8 million in non-cash lease impairment charges, $31.7
million for clinical trial and related employee compensation costs for the wind down of the bempegaldesleukin program, as well as $7.5
million in other restructuring costs.
Net loss for the fourth
quarter of 2023 was $42.1 million or $0.22 basic and diluted loss per share as compared to a net loss of $59.7 million or $0.32 basic
and diluted loss per share in the fourth quarter of 2022. Net loss for the year ended December 31, 2023 was $276.1 million or $1.45 basic
and diluted loss per share as compared to a net loss of $368.2 million or $1.97 basic and diluted loss per share in 2022. Excluding the
$111.8 million in non-cash goodwill and other impairment charges, net loss, on a non-GAAP basis, for the full year 2023 was $164.3 million
or $0.86 basic and diluted loss per share.
2023 and Recent Business
Discuss Fourth Quarter and Year-End 2023 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, March 4, 2024.
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 5, 2024.
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 biotechnology company with a robust, wholly owned R&D pipeline of investigational medicines in immunology and oncology as well
as a portfolio of approved partnered medicines. Nektar is headquartered in San Francisco, California, with additional operations in Huntsville,
Alabama. Further information about the company and its drug development programs and capabilities may be found online at http://www.nektar.com.
Regarding Forward-Looking Statements
contains forward-looking statements which can be identified by words such as: "expect," "believe,"
"design," "plan," "will," "develop," "advance" 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, and expectations for how long our cash and marketable securities will
support our development activities and operations. 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 studies (notwithstanding positive findings in earlier preclinical and clinical
studies); (iii) NKTR-0165 is in preclinical development and rezpegaldesleukin is in clinical development, and the risk of failure is
high for drug candidates at this stage of development 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 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 prior corporate restructuring and reorganization plans 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-Q filed with the Securities and Exchange Commission
on November 8, 2023. 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
David Rosen of Argot Partners
CONDENSED CONSOLIDATED BALANCE SHEETS
| December 31, 2023 | December 31, 2022 (1) | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 35,277 | $ | 88,227 | ||||
| Short-term investments | 268,339 | 416,750 | ||||||
| Accounts receivable | 1,205 | 5,981 | ||||||
| Inventory | 16,101 | 19,202 | ||||||
| Other current assets | 9,779 | 15,808 | ||||||
| Total current assets | 330,701 | 545,968 | ||||||
| Long-term investments | 25,825 | - | ||||||
| Property, plant and equipment, net | 18,856 | 32,451 | ||||||
| Operating lease right-of-use assets | 18,007 | 53,435 | ||||||
| Goodwill | - | 76,501 | ||||||
| Other assets | 4,644 | 2,245 | ||||||
| Total assets | $ | 398,033 | $ | 710,600 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | 9,848 | 12,980 | ||||||
| Accrued expenses | 22,162 | 36,557 | ||||||
| Operating lease liabilities, current portion | 19,259 | 18,667 | ||||||
| Total current liabilities | 51,269 | 68,204 | ||||||
| Operating lease liabilities, less current portion | 98,517 | 112,829 | ||||||
| Liabilities related to the sales of future royalties, net | 112,625 | 155,378 | ||||||
| Other long-term liabilities | 4,635 | 7,551 | ||||||
| Total liabilities | 267,046 | 343,962 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders' equity: | ||||||||
| Preferred stock | - | - | ||||||
| Common stock | 19 | 19 | ||||||
| Capital in excess of par value | 3,608,137 | 3,574,719 | ||||||
| Accumulated other comprehensive income (loss) | 80 | (6,907 | ) | |||||
| Accumulated deficit | (3,477,249 | ) | (3,201,193 | ) | ||||
| Total stockholders' equity | 130,987 | 366,638 | ||||||
| Total liabilities and stockholders' equity | $ | 398,033 | $ | 710,600 |
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(In thousands, except per
| Three months ended December 31, | Year ended December 31, | |||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
| Revenue: | ||||||||||||||||
| Product sales | $ | 5,483 | $ | 4,379 | $ | 20,681 | $ | 20,348 | ||||||||
| Non-cash royalty revenue related to the sales of future royalties | 18,061 | 17,627 | 68,921 | 69,794 | ||||||||||||
| License, collaboration and other revenue | 341 | 17 | 520 | 1,913 | ||||||||||||
| Total revenue | 23,885 | 22,023 | 90,122 | 92,055 | ||||||||||||
| Operating costs and expenses: | ||||||||||||||||
| Cost of goods sold | 7,283 | 6,233 | 33,768 | 21,635 | ||||||||||||
| Research and development | 29,942 | 34,740 | 114,162 | 218,323 | ||||||||||||
| General and administrative | 17,320 | 21,939 | 77,417 | 92,333 | ||||||||||||
| Restructuring, impairment and costs of terminated program | 2,851 | 11,580 | 51,958 | 135,930 | ||||||||||||
| Impairment of goodwill | 76,501 | - | ||||||||||||||
| Total operating costs and expenses | 57,396 | 74,492 | 353,806 | 468,221 | ||||||||||||
| Loss from operations | (33,511 | ) | (52,469 | ) | (263,684 | ) | (376,166 | ) | ||||||||
| Non-operating income (expense): | ||||||||||||||||
| Change in fair value of development derivative liability | - | - | - | 33,427 | ||||||||||||
| Non-cash interest expense on liabilities related to the sales of future royalties | (6,867 | ) | (7,201 | ) | (25,334 | ) | (28,911 | ) | ||||||||
| Interest income | 4,617 | 3,346 | 19,009 | 6,783 | ||||||||||||
| Other income (expense), net | (6,347 | ) | (220 | ) | (6,247 | ) | (116 | ) | ||||||||
| Total non-operating income (expense), net | (8,597 | ) | (4,075 | ) | (12,572 | ) | 11,183 | |||||||||
| Loss before provision for income taxes | (42,108 | ) | (56,544 | ) | (276,256 | ) | (364,983 | ) | ||||||||
| Provision (benefit) for income taxes | (29 | ) | 3,144 | (200 | ) | 3,215 | ||||||||||
| Net loss | $ | (42,079 | ) | $ | (59,688 | ) | $ | (276,056 | ) | $ | (368,198 | ) | ||||
| Basic and diluted net loss per share | $ | (0.22 | ) | $ | (0.32 | ) | $ | (1.45 | ) | $ | (1.97 | ) | ||||
| Weighted average shares outstanding used in computing basic and diluted net loss per share | 191,040 | 188,237 | 190,001 | 187,138 |