Nektar Therapeutics Reports Third Quarter 2023 Financial Results

Therapeutics Reports Third Quarter 2023 Financial Results

FRANCISCO, November 7, 2023 /PRNewswire/ -- Nektar Therapeutics (Nasdaq: NKTR) today reported financial results for the third quarter

ended September 30, 2023.

and investments in marketable securities at September 30, 2023, were $372.7 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 middle

made significant progress across our pipeline, including initiating a Phase 2b atopic dermatitis study in October and completing

plans to start a Phase 2b alopecia areata study in early 2024," said Howard W. Robin, President and CEO of Nektar.

"These two studies position us for important and transformative data readouts for rezpegaldesleukin in the first half of 2025.

In September, we signed a new clinical study collaboration with cell therapy leader, Cellular Biomedicine Group, who will evaluate

NKTR-255 in combination with CBMG's tumor-infiltrating lymphocyte therapy in advanced non-small cell lung cancer. This study

is an example of the potential of NKTR-255 in combination with a range of cell therapies in liquid and solid tumors. Finally, we

will end this year in a strong financial position with at least $320 million in cash and investments which provides us with a cash

runway into the middle of 2026."

of Financial Results

in the third quarter of 2023 was $24.1 million as compared to $23.6 million in the third quarter of 2022. Revenue for the first nine

months of 2023 was $66.2 million as compared to $70.0 million in the first nine months of 2022.

operating costs and expenses in the third quarter of 2023 were $69.0 million as compared to $77.9 million in the third quarter of 2022.

Total operating costs and expenses in the first nine months of 2023 were $296.4 million as compared to $393.7 million in the first nine

months of 2022. The reduction in operating costs and expenses for both the third quarter and the first nine months of 2023 were due to

decreases in research and development expenses, general and administrative expense and restructuring, impairment and costs of terminated

program. For the first nine months of 2023, these decreases were partially offset by $76.5 million in non-cash goodwill impairment.

expense in the third quarter of 2023 was $24.1 million as compared to $33.6 million for the third quarter of 2022. For the first nine

months of 2023, R&D expense was $84.2 million as compared to $183.6 million in the first nine months of 2022. R&D expense decreased

for both the third quarter and first nine months of 2023 due to the wind down of the bempegaldesleukin program.

expense was $21.1 million in the third quarter of 2023 as compared to $22.5 million in the third quarter of 2022. For the first nine

months of 2023, G&A expense was $60.1 million as compared to $70.4 million in the first nine months of 2022. G&A expense decreased

for both the third quarter and first nine months of 2023 due to the wind down of the bempegaldesleukin program.

impairment and costs of terminated program were $11.4 million in the third quarter of 2023 as compared to $16.8 million in the third

quarter of 2022. The amount for the third quarter of 2023 includes $10.2 million in non-cash lease and equipment impairment charges,

$0.7 million for the wind down of the bempegaldesleukin program and $0.5 million in severance. The amount for the third quarter of 2022

includes $8.5 million for the wind down of the bempegaldesleukin program, $5.0 million for contract termination and other restructuring

costs, $2.1 million in severance and $1.2 million in non-cash lease impairment charges.

the first nine months of 2023, restructuring, impairment and costs of terminated program were $49.1 million. This amount includes

$36.6 million in non-cash lease and equipment impairment charges, $8.0 million in severance and $3.6 million for the wind down of

the bempegaldesleukin program.

the first nine months of 2022, restructuring, impairment and costs of terminated program were $124.4 million. This amount includes $58.5

million in non-cash lease and equipment impairment charges, $29.8 million in severance, $28.9 million for the wind down of the bempegaldesleukin

program and $7.1 million in contract termination and other restructuring costs.

loss for the third quarter of 2023 was $45.8 million or $0.24 basic and diluted loss per share as compared to a net loss of $59.0 million

or $0.31 basic and diluted loss per share in the third quarter of 2022. Net loss in the first nine months of 2023 was $234.0 million

or $1.23 basic and diluted loss per share as compared to a net loss of $308.5 million or $1.65 basic and diluted loss per share in the

first nine months of 2022. Excluding the $10.2 million in non-cash impairment charges, net loss, on a non-GAAP basis, for the third quarter

of 2023 was $35.7 million or $0.19 basic and diluted loss per share. Excluding the $113.1 million in non-cash goodwill and other impairment

charges, net loss, on a non-GAAP basis, for the first nine months of 2023 was $120.8 million or $0.64 basic and diluted loss per share.

Quarter 2023 and Recent Business Updates

Call to Discuss Third Quarter 2023 Financial Results

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 7,

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 December

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.

Therapeutics is a biopharmaceutical 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

manufacturing 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.

Note Regarding Forward-Looking Statements

press release contains forward-looking statements which can be identified by words such as: "will," "could," "develop,"

"potential," "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-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 and NKTR-255 are based on preclinical and clinical

findings and observations and are subject to change as research and development continue; (ii) rezpegaldesleukin 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

and NKTR-255 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

cost savings we expect from our 2022 corporate restructuring and reorganization plan or our 2023 cost restructuring plan 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 Annual Report on Form 10-Q filed with the Securities and Exchange

Commission on August 9, 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 otherwise.

Wu of Nektar Therapeutics

Rosen of Argot Partners

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED STATEMENTS OF OPERATIONS

thousands, except per share information)