Nektar Therapeutics Reports Fourth Quarter and Year-End 2022 Financial Results
Nektar Therapeutics (NKTR) reported its financial results for Q4 and full-year 2022, revealing a revenue decline to $22.0 million in Q4 from $25.0 million in Q4 2021, and a total revenue of $92.1 million for 2022, down from $101.9 million in 2021 due to decreased non-cash royalty revenue.
Operating costs decreased significantly to $74.5 million in Q4 from $137.9 million in the previous year, and for the full year 2022, costs were $468.2 million, down from $548.0 million in 2021. The net loss narrowed to $59.7 million in Q4 2022 from $145.6 million in Q4 2021. Cash and investments totaled approximately $505 million as of December 31, 2022.
- Operating costs decreased to $74.5 million in Q4 2022 from $137.9 million in Q4 2021.
- Net loss improved to $59.7 million in Q4 2022 from $145.6 million in Q4 2021.
- Total revenue decreased to $22.0 million in Q4 2022 from $25.0 million in Q4 2021.
- Full-year 2022 revenue declined to $92.1 million from $101.9 million in 2021.
- Net loss for 2022 was $368.2 million compared to $523.8 million in 2021.
Cash and investments in marketable securities at
"We are committed to ensuring that our existing cash can support a runway through at least the middle of 2025," said
Summary of Financial Results
Revenue in the fourth quarter of 2022 was
Total operating costs and expenses in the fourth quarter of 2022 were
R&D expense in the fourth quarter of 2022 was
G&A expense was
Restructuring, impairment and other costs of the terminated program were
Net loss for the fourth quarter of 2022 was
On
As a result of this call, Nektar will not host its regular quarterly financial results conference call for the fourth quarter and year-end 2022. Nektar's Form 10-K for the year ended
About
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements which can be identified by words such as: "will," "may," "advance," "support," "develop," "provide" 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 (formerly 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, our expectations (including our expected charges and cost savings) following our 2022 corporate restructuring and reorganization plan and workforce reduction, and our expected working capital and 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 cost savings we expect from our 2022 corporate restructuring and reorganization 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-K filed with the
Contact:
For Investors:
628-895-0661
For Media:
(212) 600-1902
david.rosen@argotpartners.com
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||||||||
(In thousands) | |||||||||||||||
(Unaudited) | |||||||||||||||
ASSETS | |||||||||||||||
Current assets: | |||||||||||||||
Cash and cash equivalents | $ 88,227 | $ 25,218 | |||||||||||||
Short-term investments | 416,750 | 708,737 | |||||||||||||
Accounts receivable | 5,981 | 22,492 | |||||||||||||
Inventory | 19,202 | 15,801 | |||||||||||||
Other current assets | 15,808 | 23,333 | |||||||||||||
Total current assets | 545,968 | 795,581 | |||||||||||||
Long-term investments | - | 64,828 | |||||||||||||
Property, plant and equipment, net | 32,451 | 60,510 | |||||||||||||
Operating lease right-of-use assets | 53,435 | 117,025 | |||||||||||||
76,501 | 76,501 | ||||||||||||||
Other assets | 2,245 | 2,744 | |||||||||||||
Total assets | $ 710,600 | $ 1,117,189 | |||||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||||||
Current liabilities: | |||||||||||||||
Accounts payable | $ 12,980 | $ 9,747 | |||||||||||||
Accrued compensation | 9,582 | 15,735 | |||||||||||||
Accrued clinical trial expenses | 12,262 | 26,809 | |||||||||||||
Other accrued expenses | 14,713 | 15,468 | |||||||||||||
Operating lease liabilities, current portion | 18,667 | 17,441 | |||||||||||||
Total current liabilities | 68,204 | 85,200 | |||||||||||||
Operating lease liabilities, less current portion | 112,829 | 125,736 | |||||||||||||
Development derivative liability | - | 27,726 | |||||||||||||
Liabilities related to the sales of future royalties, net | 155,378 | 195,427 | |||||||||||||
Other long-term liabilities | 7,551 | 3,592 | |||||||||||||
Total liabilities | 343,962 | 437,681 | |||||||||||||
Commitments and contingencies | |||||||||||||||
Stockholders' equity: | |||||||||||||||
Common stock | 19 | 19 | |||||||||||||
Capital in excess of par value | 3,574,719 | 3,516,641 | |||||||||||||
Accumulated other comprehensive loss | (6,907) | (4,157) | |||||||||||||
Accumulated deficit | (3,201,193) | (2,832,995) | |||||||||||||
Total stockholders' equity | 366,638 | 679,508 | |||||||||||||
Total liabilities and stockholders' equity | $ 710,600 | $ 1,117,189 | |||||||||||||
(1) The consolidated balance sheet at | |||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||
(In thousands, except per share information) | ||||||||||||||
(Unaudited) | ||||||||||||||
Three months ended | Year ended | |||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||
Revenue: | ||||||||||||||
Product sales | $ 4,379 | $ 5,890 | $ 20,348 | $ 23,725 | ||||||||||
Non-cash royalty revenue related to the | 17,627 | 19,079 | 69,794 | 77,746 | ||||||||||
License, collaboration and other revenue | 17 | 40 | 1,913 | 436 | ||||||||||
Total revenue | 22,023 | 25,009 | 92,055 | 101,907 | ||||||||||
Operating costs and expenses: | ||||||||||||||
Cost of goods sold | 6,233 | 6,163 | 21,635 | 24,897 | ||||||||||
Research and development | 34,740 | 99,614 | 218,323 | 400,269 | ||||||||||
General and administrative | 21,939 | 32,142 | 92,333 | 122,844 | ||||||||||
Restructuring, impairment and other costs | 11,580 | - | 135,930 | - | ||||||||||
Total operating costs and expenses | 74,492 | 137,919 | 468,221 | 548,010 | ||||||||||
Loss from operations | (52,469) | (112,910) | (376,166) | (446,103) | ||||||||||
Non-operating income (expense): | ||||||||||||||
Change in fair value of development | - | (383) | 33,427 | (8,023) | ||||||||||
Non-cash interest expense on liabilities | (7,201) | (8,127) | (28,911) | (47,313) | ||||||||||
Loss on revaluation of liability related to | - | (24,410) | - | (24,410) | ||||||||||
Interest income and other income (expense), net | 3,126 | 181 | 6,667 | 2,569 | ||||||||||
Total non-operating income (expense), net | (4,075) | (32,739) | 11,183 | (77,177) | ||||||||||
Loss before provision for income taxes | (56,544) | (145,649) | (364,983) | (523,280) | ||||||||||
Provision for income taxes | 3,144 | (4) | 3,215 | 557 | ||||||||||
Net loss | $ (59,688) | $ (145,645) | $ (368,198) | $ (523,837) | ||||||||||
Basic and diluted net loss per share | $ (0.32) | $ (0.79) | $ (1.97) | $ (2.86) | ||||||||||
Weighted average shares outstanding used in | 188,237 | 184,964 | 187,138 | 183,298 | ||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||
(In thousands) | ||||||||||
(Unaudited) | ||||||||||
Year ended | ||||||||||
2022 | 2021 | |||||||||
Cash flows from operating activities: | ||||||||||
Net loss | $ (368,198) | $ (523,837) | ||||||||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||||
Non-cash royalty revenue related to the sales of future royalties | (69,794) | (77,746) | ||||||||
Non-cash interest expense on liabilities related to the sales of future royalties | 28,911 | 47,313 | ||||||||
Loss on revaluation of liability related to the sale of future royalties | - | 24,410 | ||||||||
Change in fair value of development derivative liability | (33,427) | 8,023 | ||||||||
Non-cash research and development expense | 4,951 | 16,703 | ||||||||
Stock-based compensation | 57,320 | 94,674 | ||||||||
Depreciation and amortization | 13,030 | 14,146 | ||||||||
Deferred income tax expense | 2,708 | (102) | ||||||||
Impairment of right-of-use asset and property, plant and equipment | 65,761 | - | ||||||||
(Gain) loss on sale or disposal of property, plant and equipment, net | (3,326) | - | ||||||||
Amortization of premiums (discounts), net and other non-cash transactions | (2,435) | 6,730 | ||||||||
Changes in operating assets and liabilities: | ||||||||||
Accounts receivable | 16,511 | 12,397 | ||||||||
Inventory | (3,401) | (509) | ||||||||
Operating leases, net | (2,680) | 2,340 | ||||||||
Other assets | 6,906 | (2,586) | ||||||||
Accounts payable | 3,103 | (11,690) | ||||||||
Accrued compensation | (6,153) | 1,203 | ||||||||
Other accrued expenses | (12,734) | (23,524) | ||||||||
Deferred revenue | (1,060) | (605) | ||||||||
Net cash used in operating activities | (304,007) | (412,660) | ||||||||
Cash flows from investing activities: | ||||||||||
Purchases of investments | (467,914) | (960,689) | ||||||||
Maturities of investments | 826,229 | 1,166,951 | ||||||||
Sales of investments | - | 11,504 | ||||||||
Purchases of property, plant and equipment | (5,676) | (14,989) | ||||||||
Sales of property, plant and equipment | 13,196 | - | ||||||||
Net cash provided by investing activities | 365,835 | 202,777 | ||||||||
Cash flows from financing activities: | ||||||||||
Cash receipts from development derivative liability | 750 | 3,000 | ||||||||
Proceeds from shares issued under equity compensation plans | 758 | 33,238 | ||||||||
Net cash provided by financing activities | 1,508 | 36,238 | ||||||||
Effect of foreign exchange rates on cash and cash equivalents | (327) | (92) | ||||||||
Net increase (decrease) in cash and cash equivalents | 63,009 | (173,737) | ||||||||
Cash and cash equivalents at beginning of year | 25,218 | 198,955 | ||||||||
Cash and cash equivalents at end of year | $ 88,227 | $ 25,218 | ||||||||
Supplemental disclosure of cash flow information: | ||||||||||
Cash paid for income taxes | $ 272 | $ 325 | ||||||||
Operating lease right-of-use assets recognized in exchange for lease liabilities | $ - | $ 1,057 | ||||||||
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