Full Press Release Details
Reports Second Quarter 2025 Financial Results
SAN FRANCISCO, August 7, 2025 -- Nektar
Therapeutics (Nasdaq: NKTR) today reported financial results for the second quarter ended June 30, 2025.
Cash and investments in marketable securities
on June 30, 2025 were $175.9 million as compared to $269.1 million on December 31, 2024. Nektar's cash and marketable securities
at June 30, 2025 do not include $107.5 million of approximate net proceeds from the secondary offering closed on July 2, 2025. With the
net proceeds from the secondary offering, we expect our cash and investments in marketable securities to support our operations into the
first quarter of 2027.
"This quarter, we announced transformative
data for rezpegaldesleukin from the Phase 2b study in patients with moderate to severe atopic dermatitis," said Howard W. Robin,
President and CEO of Nektar. "The 16-week induction data demonstrated that rezpegaldesleukin resulted in a rapid onset of EASI response
and itch relief and showcased the advantage of a broad-based Treg mechanism over other mechanistic approaches in development to treat
atopic dermatitis. We look forward to seeing the effect of continued treatment with rezpegaldesleukin when we report the 52-week data
in early 2026. In alopecia areata, we will report the data from a separate Phase 2b study in December of this year. We believe the
data from both randomized studies will demonstrate the potential of rezpegaldesleukin to provide a new treatment paradigm for patients
with chronic and serious diseases that significantly impact quality of life. As a first-in-class, T regulatory cell biologic, rezpegaldesleukin
is poised to become an important novel mechanism to treat millions of patients with autoimmune disorders."
"We are proceeding in our IND-enabling
studies for our next T reg program, NKTR-0165, which targets the TNFR2 receptor to stimulate tissue-specific T regulatory cells,"
continued Robin. "Our goal is to advance NKTR-0165 into the clinic in 2026. Finally, we are making significant progress on advancing
preclinical studies with a new bispecific antibody, NKTR-0166, which combines the TNFR2 epitope with a validated antibody target."
Summary of Financial Results
Revenue in the second quarter of 2025 was
$11.2 million as compared to $23.5 million in the second quarter of 2024. Revenue for the first half of 2025 was $21.6 million as
compared to $45.1 million in the first half 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
second quarter of 2025 were $47.4 million as compared to $73.3 million in the second quarter of 2024. Total operating costs and expenses
in the first half of 2025 were $102.4 million as compared to $130.3 million in the first half of 2024. Operating costs and expenses for
the first half of 2025 decreased due to the elimination of cost of goods sold following the sale of the Huntsville manufacturing facility,
as well as a decrease in restructuring and impairment charges.
R&D expense in the second quarter of 2025
was $29.9 million as compared to $29.7 million for the second quarter of 2024. R&D expense in the first half of 2025 was $60.4 million
as compared to $57.1 million for the first half of 2024. R&D expense increased for the first half of 2025 primarily due to an increase
in expenses for the development of rezpegaldesleukin and NKTR-0165, partially offset by a decrease in expense for the development of NKTR-255.
G&A expense was $17.1 million in the second
quarter of 2025 as compared to $20.5 million in the second quarter of 2024. G&A expense was $41.4 million in the first half
of 2025 as compared to $40.7 million in the first half of 2024. G&A expense increased slightly in the first half of 2025
due to an increase in legal expenses, partially offset by decreases in facilities and stock-based compensation expenses.
Non-cash restructuring and impairment charges
were not material in the second quarter and first half of 2025. Non-cash restructuring and impairment charges in the second quarter of
2024 were $13.3 million and $14.3 million in the first half of 2024. These non-cash charges were related to the declining San
Francisco commercial real estate market and real estate lease obligations held by Nektar.
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 non-cash losses from the equity method
investment of $2.4 million in the second quarter of 2025 and $6.8 million in the first half of 2025.
Net loss for the second quarter of 2025 was
$41.6 million or $2.95 basic and diluted loss per share as compared to a net loss of $52.4 million or $3.761
basic and diluted loss per share in the second quarter of 2024. Net loss in the first half of 2025 was $92.5 million or $6.57 basic and
diluted loss per share as compared to a net loss of $89.2 million or $6.631 basic and diluted loss per share in the first half
of 2024. Excluding the $2.4 million and $6.8 million non-cash loss from our equity method investment in Gannet BioChem, net loss, on a
non-GAAP basis, for the second quarter and first half of 2025 were $39.2 million and $85.6 million, respectively, or $2.78 and $6.08 basic
and diluted loss per share, respectively.
Recent Business Highlights
Conference Call to Discuss Second 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 August 7, 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: https://ir.nektar.com/. The
web broadcast of the conference call will be available for replay through September 8, 2025.
To access the conference call by phone, 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," "believe," 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 May 9, 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