Nektar Therapeutics Reports Third Quarter 2022 Financial Results

Reports Third Quarter 2022 Financial Results

SAN FRANCISCO, Nov. 3,

2022 /PRNewswire/ -- Nektar Therapeutics (Nasdaq: NKTR) today reported financial results for the third quarter ended September 30, 2022.

Cash and investments

in marketable securities on September 30, 2022, were approximately $546.4 million as compared to $628.2 million at the end of the second

quarter of 2022. Our cash and marketable securities are expected to support our strategic development activities and operations through

"In the third quarter,

we made progress advancing our biologics pipeline in oncology and immunology," said Howard W. Robin, President and CEO of Nektar.

"With our partner, Eli Lilly, we presented positive proof-of-concept data for NKTR-358 in atopic dermatitis which demonstrate the

potential for this first-in-class Treg stimulator to emerge as a differentiated therapy for patients with serious inflammatory conditions.

In the first half of 2023, we expect Lilly to report topline data from the Phase 2 study of NKTR-358 in lupus as well as initiate a Phase

2 study in atopic dermatitis."

are also advancing NKTR-255 in large B-cell lymphoma, with plans to launch a comparative study in combination with approved autologous

CD19 CAR-T therapies," continued Robin. "NKTR-255 targets the IL-15 pathway and we have conducted and published extensive preclinical studies showing that IL-15 can potentiate these

approved cell therapies by expanding and extending the persistence of CAR-T cells. Finally, we are planning presentations at both SITC and ASH for both our preclinical and clinical programs that will showcase

the strength of our science and lay the foundation for continued pipeline progress."

Summary of Financial

Revenue, which primarily

includes non-cash royalty revenue, in the third quarter of 2022 was $23.6 million as compared to $24.9 million in the third quarter of

2021. Revenue for the first nine months of 2022 was $70.0 million as compared to $76.9 million in the first nine months of 2021. Revenue

was lower compared to 2021 as a result of a decrease in non-cash royalty revenue.

Total operating costs

and expenses in the third quarter of 2022 were $77.9 million as compared to $138.5 million in the third quarter of 2021. Total operating

costs and expenses in the first nine months of 2022 were $393.7 million as compared to $410.1 million in the first nine months of 2021.

Operating costs and expenses for the first nine months of 2022 include $124.3 million in restructuring, impairment and other costs of

third quarter of 2022 was $33.6 million as compared to $103.7 million for the third quarter of 2021. For the first nine months of 2022,

R&D expense was $183.6 million as compared to $300.7 million in the first nine months of 2021. R&D expense decreased for both

the third quarter and the first nine months of 2022 primarily due to the wind down of the bempegaldesleukin program.

G&A expense was $22.5

million in the third quarter of 2022 and $29.5 million in the third quarter of 2021. For the first nine months of 2022, G&A expense

was $70.4 million as compared to $90.7 million in the first nine months of 2021. G&A expense decreased for both the third quarter

and the first nine months of 2022 primarily due to the wind down of the bempegaldesleukin program.

Restructuring, impairment and other costs of terminated

program was $16.8 million in the third quarter of 2022 and $124.3 million in the first nine months of 2022. The year-to-date amount includes

$58.5 million in non-cash lease and equipment impairment charges, $29.8 million in employee severance expense and $28.9 million for clinical

trial and related employee compensation costs for the wind down of the bempegaldesleukin program, as well as $7.1 million in other restructuring

Net loss for the third quarter of 2022 was $59.0

million or $0.31 basic and diluted loss per share as compared to a net loss of $129.7 million or $0.70 basic and diluted loss per share

in the third quarter of 2021. Net loss in the first nine months of 2022 was $308.5 million or $1.65 basic and diluted loss per share as

compared to a net loss of $378.2 million or $2.07 basic and diluted loss per share in the first nine months of 2021.

and Recent Business Highlights:

Nektar also announced

upcoming presentations at the following scientific congresses:

The Society for Immunotherapy

of Cancer (SITC) Annual Meeting

November 8-12, 2022 (In

2022 American Society

of Hematology (ASH) Annual Meeting

December 10-13, 2022

(In person and virtual)

Discuss Third Quarter 2022 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, November 3, 2022.

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 Investors section

of the Nektar website: https://ir.nektar.com/. The web broadcast of the conference call will be available for replay through December

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.

In the event that any

non-GAAP financial measure is discussed on the conference call that is not described in this press release, or explained on the conference

call, related information will be made available on the Investors section of the Nektar website as soon as practical after the conclusion

of the conference call.

About Nektar Therapeutics

is a biopharmaceutical company with a robust, wholly owned R&D pipeline of investigational medicines in oncology and immunology

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: "will," "may," "expect,"

"potential," "advance," "initiate" and similar references to future periods. Examples of forward-looking

statements include, among others, statements we make regarding the therapeutic potential of, and future development plans for rezpegaldesleukin

(previously referred to as NKTR-358), NKTR-255 and our other drug candidates in research programs, the prospects and plans for

our collaborations with other companies, the timing of the initiation of clinical studies and the data readouts for our drug candidates,

and our expectations (including our expected charges and cost savings) following our corporate restructuring, reorganization and workforce

reduction, and our expected working capital and our cash runway. 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-255 and our other drug candidates are based on preclinical and clinical findings

and observations and are subject to change as research and development continue; (ii) rezpegaldesleukin, NKTR-255 and our other drug

candidates are investigational agents and continued research and development for these drug candidates is subject to substantial risks,

including negative safety and efficacy findings in ongoing clinical studies (notwithstanding positive findings in earlier preclinical

and clinical studies); (iii) rezpegaldesleukin, NKTR-255 and our other drug candidates are in various stages of 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 challenges caused by the COVID-19

pandemic, 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 costs savings we expect from the restructuring and reorganization,

(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 August 5, 2022. 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.

Vivian Wu of Nektar Therapeutics

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