Nektar Therapeutics Reports Fourth Quarter and Full Year 2024 Financial Results

Rhea-AI Summary

Nektar Therapeutics (NKTR) reported Q4 and full year 2024 financial results. The company ended 2024 with $269.1 million in cash and investments, down from $329.4 million in 2023. Q4 2024 revenue increased to $29.2 million from $23.9 million year-over-year, while full-year revenue rose to $98.4 million from $90.1 million.

The company reported Q4 2024 net income of $7.3 million ($0.03 per share), compared to a net loss of $42.1 million in Q4 2023. Full-year 2024 net loss was $119.0 million ($0.58 per share), improved from $276.1 million in 2023. Operating expenses decreased significantly to $203.6 million in 2024 from $353.8 million in 2023, partly due to a $40.4 million gain from the Huntsville facility sale.

Key developments include completed enrollment in Phase 2b trials for rezpegaldesleukin in atopic dermatitis and alopecia areata, with topline data expected in Q2 and Q4 2025. The company also sold its Huntsville manufacturing business to Ampersand Capital Partners for $90 million in enterprise value.

Positive

• Revenue increased 9.2% to $98.4 million in 2024
• Operating expenses decreased 42.5% to $203.6 million in 2024
• Net loss improved significantly from $276.1M in 2023 to $119.0M in 2024
• $40.4 million gain from Huntsville facility sale
• FDA Fast Track designation received for rezpegaldesleukin

Negative

• Cash position decreased by $60.3 million from 2023 to $269.1 million
• Continued net loss of $119.0 million in 2024
• R&D expenses increased to $120.9 million from $114.2 million in 2023

Insights

Financial Analyst

Nektar's Q4 2024 results show significant financial improvement with Q4 revenue of $29.2 million (up 22% YoY) and full-year revenue of $98.4 million (up 9% YoY). Most notably, the company achieved profitability in Q4 with net income of $7.3 million compared to a $42.1 million loss in Q4 2023, representing a dramatic operational turnaround.

The company has substantially reduced its operational burn by cutting operating costs to $14.8 million in Q4 (down 74% YoY) and $203.6 million for the full year (down 42% YoY). A key strategic move was the $90 million sale of their Huntsville manufacturing facility to Ampersand Capital Partners, which provided $70 million in immediate cash while maintaining PEG reagent supply through manufacturing agreements.

With $269.1 million in cash and investments (down from $329.4 million YoY), Nektar's runway now extends into Q4 2026, providing sufficient capital through important clinical milestones. The annual burn rate appears to be around $60 million, suggesting improved operational efficiency. The company has maintained R&D investment at $120.9 million annually, strategically prioritizing their immunology pipeline.

While Nektar remains in overall loss territory for the full year ($119 million), this represents a 57% improvement from 2023's $276.1 million loss. The company's focus on its rezpegaldesleukin program with two Phase 2b readouts in 2025 represents near-term value inflection points, particularly important given the FDA's Fast Track designation for the atopic dermatitis indication.

Biotech Research Analyst

Nektar has strategically repositioned its pipeline with rezpegaldesleukin as the lead candidate, targeting substantial markets in autoimmune conditions. The completion of enrollment in both the 396-patient atopic dermatitis and 84-patient alopecia areata Phase 2b trials sets up critical data readouts in Q2 and Q4 2025, respectively.

The FDA's Fast Track designation for rezpegaldesleukin in moderate-to-severe atopic dermatitis is particularly significant, suggesting regulatory recognition of the unmet need and the drug's potential. This designation could expedite the development timeline if data proves positive.

Supporting the potential of rezpegaldesleukin are the published Phase 1b results in Nature Communications showing durable responses in atopic dermatitis with 71% of week 12 responders maintaining EASI-75 improvement for 36 weeks after treatment discontinuation. This durability profile could differentiate it from existing therapies and suggests a potentially transformative treatment paradigm through Treg-mediated pathways.

Beyond the lead program, Nektar is advancing NKTR-255, which demonstrated promising clinical data at ASH 2024, showing enhanced complete response rates (73% vs 50% for placebo) following CAR-T therapy in large B-cell lymphoma. The company is also progressing earlier-stage assets, including NKTR-0165 (TNFR2 agonist) with IND submission planned for H2 2025.

The company's pipeline has significantly matured with clear clinical validation points, a more focused R&D strategy, and proper resource allocation. With multiple programs advancing, including expansion into type 1 diabetes through the TrialNet collaboration, Nektar has established a diversified immunology portfolio with substantial potential medical impact.

SAN FRANCISCO, March 12, 2025 /PRNewswire/ -- Nektar Therapeutics (Nasdaq: NKTR) today reported financial results for the fourth quarter ended December 31, 2024.

Cash and investments in marketable securities on December 31, 2024 were $269.1 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 quarter of 2026.

"The significant progress we made last year in advancing our immunology pipeline positions us for two value-creating data milestones in 2025," said Howard W. Robin, President and CEO of Nektar. "With enrollment now complete for the atopic dermatitis and alopecia areata Phase 2b trials, we are on track to report topline data for rezpegaldesleukin in the second quarter and in the fourth quarter of this year, respectively. This program is poised to emerge as the first T regulatory cell treatment option to help the millions of patients battling these chronic autoimmune disorders."

"We also made progress on our preclinical immunology programs," continued Robin. "We reported the first data for NKTR-0165, our novel antibody targeting TNFR2, and unveiled a new bispecific antibody, NKTR-0166. We plan to submit the IND for NKTR-0165 in the second half of this year."

Summary of Financial Results

Revenue in the fourth quarter of 2024 was $29.2 million as compared to $23.9 million in the fourth quarter of 2023. Revenue for the year ended December 31, 2024 was $98.4 million as compared to $90.1 million in 2023.

Total operating costs and expenses in the fourth quarter of 2024 were $14.8 million as compared to $57.4 million in the fourth quarter of 2023. Total operating costs and expenses for the full year 2024 were $203.6 million as compared to $353.8 million in 2023. Operating costs and expenses for both the fourth quarter and the full year 2024 decreased as compared to 2023 primarily due to a $40.4 million gain from sale of the Huntsville manufacturing facility in 2024, as well as decreases in restructuring and impairment costs. Operating expenses for the full year 2024 also decreased as compared to 2023 due to a one-time $76.5 million non-cash goodwill impairment recognized in the first quarter of 2023.

R&D expense in the fourth quarter of 2024 was $28.7 million as compared to $29.9 million for the fourth quarter of 2023. R&D expense for the year ended December 31, 2024 was $120.9 million as compared to $114.2 million in 2023. R&D expense increased for full year 2024 primarily due to increases in development expenses for rezpegaldesleukin partially offset by decreases in employee and related facilities costs, as well as development expenses for NKTR-255.

G&A expense was $17.1 million in the fourth quarter of 2024 and $17.3 million in the fourth quarter of 2023. G&A expense for the full year 2024 was $76.8 million as compared to $77.4 million in 2023. G&A expense remained consistent for the full year 2024 as compared to the full year 2023. Decreases in employee costs were offset by a reduction of facilities costs allocated to research and development expense as well as an increase in commercial litigation expense.

Restructuring and impairment costs were $1.4 million in the fourth quarter of 2024 and $15.7 million in the full year 2024, as compared to $2.9 million in the fourth quarter of 2023 and $52.0 million in the full year 2023. The full year 2024 amount includes $8.3 million in non-cash lease impairment charges, and $7.4 million in other restructuring costs. The full year 2023 amount includes $7.9 million in severance expense, $35.3 million in non-cash lease impairment charges, and $8.8 million in other restructuring costs.

Net income for the fourth quarter of 2024 was $7.3 million or $0.03 basic and diluted earnings per share as compared to a net loss of $42.1 million or $0.22 basic and diluted loss per share in the fourth quarter of 2023. Net loss for the year ended December 31, 2024 was $119.0 million or $0.58 basic and diluted loss per share as compared to a net loss of $276.1 million or $1.45 basic and diluted loss per share in 2023. Excluding the $40.4 million gain from sale of the Huntsville manufacturing facility, and the $1.4 million in non-cash restructuring charges, net loss, on a non-GAAP basis, for the fourth quarter of 2024 was $31.8 million or $0.15 basic and diluted loss per share. Excluding the $40.4 million gain from sale of the Huntsville manufacturing facility, and the $15.7 million in non-cash restructuring and real estate impairment charges, net loss, on a non-GAAP basis, for the full year 2024 was $143.7 million or $0.70 basic and diluted loss per share.

2024 and Recent Business Highlights

• In February 2025, Nektar announced completion of target enrollment in the REZOLVE-AA 84-patient Phase 2b clinical trial of rezpegaldesleukin in severe-to-very severe alopecia areata.
• In February 2025, Nektar announced a new clinical trial agreement with TrialNet, an international clinical trial network at the forefront of diabetes research, to evaluate rezpegaldesleukin in a 66-patient Phase 2 study with new onset type 1 diabetes mellitus.
• In February 2025, the FDA granted Fast Track designation for rezpegaldesleukin for the treatment of adult and pediatric patients 12 years of age and older with moderate-to-severe atopic dermatitis whose disease is not adequately controlled with topical prescription therapies or when those therapies are not advisable.
• In January 2025, Nektar announced completion of target enrollment in the REZOLVE-AD 396-patient Phase 2b clinical trial of rezpegaldesleukin in moderate-to-severe atopic dermatitis.
• At the 66th Annual ASH Meeting in December 2024, Nektar presented proof-of-concept clinical data showing that NKTR-255 following CD19-directed CAR-T therapy enhanced complete response rates in patients with relapsed or refractory large B-cell lymphoma, with 73% of the NKTR-255 treatment group, compared to 50% of the placebo group, achieving a complete response at 6 months.
• At the 2024 American College of Rheumatology (ACR) Convergence meeting in November 2024, Nektar presented first preclinical data from its novel CSF-1 Program, NKTR-422. The program demonstrated inflammation resolution and tissue repair in multiple preclinical models of chronic inflammatory conditions.
• At the Society for Immunotherapy of Cancer (SITC) Annual Meeting in November 2024, Nektar and collaborators presented results from a planned interim analysis in the Phase 2 trial of NKTR-255 for the treatment of patients with radiation induced lymphopenia in locally advanced non-small cell lung cancer. These results suggest that NKTR-255 effectively reversed radiation induced lymphopenia in patients with locally advanced NSCLC receiving consolidation therapy with durvalumab. The Phase 2 single-arm study is being conducted by MD Anderson.
• In November 2024, Nektar announced a definitive agreement with Ampersand Capital Partners to sell its commercial PEGylation manufacturing business in Huntsville, Alabama for $90 million in enterprise value, which is comprised of $70 million in cash and $20 million in equity ownership in the new portfolio company. Nektar and the new Ampersand portfolio company have also entered into manufacturing supply agreements to meet Nektar's PEG reagent needs for rezpegaldesleukin and certain pipeline programs.
• In October 2024, Nature Communications published results from Phase 1b studies of rezpegaldesleukin in patients with moderate-to-severe atopic dermatitis or chronic plaque psoriasis. Data from both trials demonstrate durable dose-dependent improvements in physician-assessed disease activity and patient-reported outcomes. In the atopic dermatitis study, EASI improvement of ≥75% and vIGA-AD responses were maintained for 36 weeks after treatment discontinuation in 71% and 80% of week 12 responders. Biomarker analyses demonstrate plurality of Treg-mediated pathways with potential effect on tissue resident memory T cell populations resulting in sustained efficacy seen in the antigen challenged mouse model and in clinical trials.
• In October 2024, Nektar announced publication in Blood of Phase 1 data showing that NKTR-255 in Combination with Autologous CD19-22 CAR-T cell therapy in patients with B-cell acute lymphoblastic leukemia exhibited relapse-free/progression-free survival for 67% of patients at 12 months, double that of historical controls. Eight of nine patients achieved complete remission, all without detectable measurable residual disease.
• At the European Alliance of Associations for Rheumatology (EULAR) in June 2024, Nektar presented preclinical data on NKTR-0165, a TNFR2 agonist antibody, demonstrating selective enhancement of Treg cell function through novel agonistic mechanism. IND-enabling studies are underway for NKTR-0165 with first-in-human studies planned in first half of 2025.

Conference Call to Discuss Fourth Quarter 2024 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 March 12, 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: http://ir.nektar.com/. The web broadcast of the conference call will be available for replay through April 12, 2025.

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 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 Statements

This press release contains forward-looking statements which can be identified by words such as: "will," "expect," "develop," "potential," "advance," "plan," 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 November 8, 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.

For Investors:

Vivian Wu of Nektar Therapeutics
628-895-0661

For Media:

Madelin Hawtin
LifeSci Communications
603-714-2638
mhawtin@lifescicomms.com

NEKTAR THERAPEUTICS
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
ASSETS								December 31, 2024		December 31, 2023(1)
Current assets:
	Cash and cash equivalents							$                     44,252		$                    35,277
	Short-term investments							210,974		268,339
	Accounts receivable							-		1,205
	Inventory, net							-		16,101
	Other current assets							6,066		9,779
		Total current assets						261,292		330,701
Long-term investments								13,869		25,825
Property, plant and equipment, net								3,411		18,856
Operating lease right-of-use assets								8,413		18,007
Equity method investment in Gannet BioChem								12,218		-
Other assets								4,647		4,644
		Total assets						$                   303,850		$                  398,033
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
	Accounts payable							11,560		9,848
	Accrued expenses							29,972		22,162
	Operating lease liabilities, current portion							19,868		19,259
		Total current liabilities						61,400		51,269
Operating lease liabilities, less current portion								82,696		98,517
Liabilities related to the sales of future royalties, net								91,776		112,625
Other long-term liabilities								7,241		4,635
		Total liabilities						243,113		267,046
Commitments and contingencies
Stockholders' equity:
	Preferred stock							-		-
	Common stock							19		19
	Capital in excess of par value							3,659,867		3,608,137
	Treasury stock							(3,000)		-
	Accumulated other comprehensive income (loss)							61		80
	Accumulated deficit							(3,596,210)		(3,477,249)
		Total stockholders' equity						60,737		130,987
	Total liabilities and stockholders' equity							$                   303,850		$                  398,033
(1) The consolidated balance sheet at December 31, 2023 has been derived from the audited financial statements at that date but does not include all
of the information and notes required by generally accepted accounting principles in the United States for complete financial statements

 

NEKTAR THERAPEUTICS
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share information)
(Unaudited)
								Three months ended December 31,				Year ended December 31,
								2024		2023		2024		2023
Revenue:
	Product sales							$                     12,874		$                     5,483		$                   33,563		$                    20,681
	Non-cash royalty revenue related to the sales of future royalties							16,238		18,061		64,267		68,921
	License, collaboration and other revenue							63		341		597		520
Total revenue								29,175		23,885		98,427		90,122
Operating costs and expenses:
	Cost of goods sold							7,978		7,283		30,686		33,768
	Research and development							28,744		29,942		120,908		114,162
	General and administrative							17,135		17,320		76,751		77,417
	Restructuring and impairment							1,360		2,851		15,670		51,958
	Impairment of goodwill							-		-		-		76,501
	Gain on sale of the Huntsville manufacturing facility							(40,390)		-		(40,390)		-
Total operating costs and expenses								14,827		57,396		203,625		353,806
	Income/(Loss) from operations							14,348		(33,511)		(105,198)		(263,684)
Non-operating income (expense):
	Non-cash interest expense on liabilities related to the sales of future royalties							(10,153)		(6,867)		(28,112)		(25,334)
	Interest income							2,942		4,617		14,500		19,009
	Other income (expense), net							(135)		(6,347)		(390)		(6,247)
Total non-operating income (expense), net								(7,346)		(8,597)		(14,002)		(12,572)
Income/(Loss) before provision for income taxes								7,002		(42,108)		(119,200)		(276,256)
Provision (benefit) for income taxes								(259)		(29)		(239)		(200)
Net Income/(loss)								$                       7,261		$                  (42,079)		$                (118,961)		$                (276,056)
Basic and diluted net income/(loss) per share								$                         0.03		$                       (0.22)		$                       (0.58)		$                       (1.45)
Weighted average shares outstanding used in computing net income/(loss) per share
Basic								209,737		191,040		205,661		190,001
Diluted								213,594		191,040		205,661		190,001

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/nektar-therapeutics-reports-fourth-quarter-and-full-year-2024-financial-results-302400327.html

SOURCE Nektar Therapeutics

FAQ

What were Nektar Therapeutics (NKTR) Q4 2024 financial results?

NKTR reported Q4 2024 revenue of $29.2 million and net income of $7.3 million ($0.03 per share), compared to revenue of $23.9 million and net loss of $42.1 million in Q4 2023.

When will NKTR report rezpegaldesleukin trial results in 2025?

NKTR will report topline data for rezpegaldesleukin in atopic dermatitis in Q2 2025 and alopecia areata in Q4 2025.

How much did Nektar receive for selling its Huntsville manufacturing facility?

Nektar sold its Huntsville facility to Ampersand Capital Partners for $90 million in enterprise value ($70 million cash, $20 million equity).

How long will NKTR's current cash position support operations?

NKTR's cash position of $269.1 million is expected to support strategic development activities and operations into Q4 2026.

What was NKTR's full-year 2024 revenue and net loss?

NKTR reported full-year 2024 revenue of $98.4 million and a net loss of $119.0 million ($0.58 per share).