Nektar Therapeutics Reports Third Quarter 2024 Financial Results

Therapeutics Reports Third Quarter 2024 Financial Results

FRANCISCO, November 7, 2024 /PRNewswire/ -- Nektar Therapeutics (Nasdaq: NKTR) today reported financial results for the third quarter

ended September 30, 2024.

and investments in marketable securities on September 30, 2024 were $249.0 million as compared to $329.4 million at December 31, 2023.

Nektar's cash and marketable securities are expected to support strategic development activities and operations into the fourth

"We made excellent progress this quarter advancing our I&I pipeline,

including the ongoing Phase 2b studies of rezpegaldesleukin in atopic dermatitis and alopecia areata," said Howard W. Robin, President

and CEO of Nektar. "We see rapid enrollment in the 400-patient atopic dermatitis study for rezpegaldesleukin, and we remain on track

for topline data in the first half of 2025. Our Phase 2 study in alopecia areata is also enrolling nicely with topline data expected in

the second half of 2025."

"Beyond rezpegaldesleukin, we are focused on advancing our earlier

stage TNFR2 antibody and bispecific programs, NKTR-0165 and NKTR-0166, with at least one of these slated to enter the clinic next year,"

continued Robin. "Next week, we are looking forward to presenting highly promising data at the 2024 ACR Convergence Meeting for

our preclinical PEG-CSF program, NKTR-422. Finally, we recently published important data for our IL-15 agonist, NKTR-255, highlighting

its potential as a validated mechanism in oncology."

of Financial Results

in the third quarter of 2024 was $24.1 million compared to the same $24.1 million in the third quarter of 2023. Revenue for the first

nine months of 2024 was $69.3 million compared to $66.2 million in the first nine months of 2023.

operating costs and expenses in the third quarter of 2024 were $58.5 million compared to $69.0 million in the third quarter of 2023.

Total operating costs and expenses in the first nine months of 2024 were $188.8 million compared to $296.4 million in the first nine

months of 2023. Operating costs and expenses for the first nine months of 2024 decreased primarily due to decreases in restructuring,

impairment and costs of terminated programs and a one-time $76.5 million non-cash goodwill impairment recognized in the first quarter

expense in the third quarter of 2024 was $35.0 million compared to $24.1 million for the third quarter of 2023. For the first nine months

of 2024, R&D expense was $92.2 million compared to $84.2 million in the first nine months of 2023. R&D expense increased for

both the third quarter and the first nine months of 2024 primarily due to increases in development expenses for rezpegaldesleukin and

NKTR-0165, partially offset by decreases in employee and related facilities costs, as well as development expenses for NKTR-255.

expense was $19.0 million in the third quarter of 2024 compared to $21.1 million in the third quarter of 2023. G&A expense was $59.6

million for the first nine months of 2024 compared to $60.1 million in the first nine months of 2023. G&A expense decreased for both

the third quarter and the first nine months of 2024 primarily due to decreases in employee costs, partially offset by the reduction of

facilities costs allocated to research and development expenses.

restructuring and impairment charges were less than $0.1 million in the third quarter of 2024 and $14.3 million in the first nine months

of 2024. These non-cash charges are related to the declining San Francisco commercial real estate market and real estate lease obligations

loss for the third quarter of 2024 was $37.1 million or $0.18 basic and diluted loss per share compared to a net loss of $45.8 million

or $0.24 basic and diluted loss per share in the third quarter of 2023. Net loss in the first nine months of 2024 was $126.2 million or $0.62 basic

and diluted loss per share compared to a net loss of $234.0 million or $1.23 basic and diluted loss per share

in the first nine months of 2023. Excluding the $14.3 million in non-cash restructuring and real estate impairment

charges, net loss, on a non-GAAP basis, for the first nine months of 2024 was $111.9 million, or $0.55 basic and diluted loss per

Quarter 2024 and Recent Business Highlights

also announced presentations at the following medical meetings:

Society for Immunotherapy of Cancer (SITC) Annual Meeting

Abstract (LBA) 1489: " REStoring lymphoCytes Using NKTR-255 after chemoradiothErapy in solid tumors (RESCUE): Preplanned Interim

Safety and Efficacy Analysis", Lin, S.

ePoster will be on display on the SITC 2024 virtual meeting platform on Thursday, November 7, 2024, at 9:00 a.m. CST

American College of Rheumatology (ACR) Convergence

1866120: "A Novel Therapeutically Active CSF-1R Agonist Promotes Tissue Macrophages Inflammation Resolution and Induces Tissue

Repair Pathways", Kivimae, S.

Presentation Type: Oral

Session: Abstracts: Cytokines & Cell Trafficking

Presentation Time: Monday, November 18 at 3:15 PM - 3:30 PM

American Society of Hematology (ASH) Annual Meeting

203576: "NKTR-255 Vs Placebo to Enhance Complete Responses and Durability Following CD19-Directed CAR-T Therapy in Patients with

Relapsed/Refractory (R/R) Large B-cell Lymphoma (LBCL)", Ahmed, S.

Presentation Type: Poster

Session: Cellular Immunotherapies: Early Phase Clinical Trials and Toxicities

Presentation Time: Saturday, December 7 at 5:30 PM - 7:30 PM

Call to Discuss Third Quarter 2024 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 on 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 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. Our pipeline also includes a preclinical candidate NKTR-0165, which is a bivalent tumor necrosis factor receptor type II agonist

antibody. 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,

Note Regarding Forward-Looking Statements

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

"expect," "develop," "potential," "advance," "anticipate," 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, and whether all

the closing conditions of the announced definitive agreement will be met. 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) 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 (vi) 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 9, 2024. 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

LifeSci Communications

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