Nektar Therapeutics Reports Third Quarter 2024 Financial Results
Nektar Therapeutics (NKTR) reported Q3 2024 financial results with revenue of $24.1 million, unchanged from Q3 2023. Cash and investments stood at $249.0 million, down from $329.4 million at end-2023. The company reported a net loss of $37.1 million ($0.18 per share) compared to $45.8 million ($0.24 per share) in Q3 2023. Operating expenses decreased to $58.5 million from $69.0 million year-over-year. Notably, Nektar announced the sale of its Huntsville PEGylation manufacturing facility to Ampersand Capital Partners for $90 million in enterprise value. The company's pipeline progress includes ongoing Phase 2b studies of rezpegaldesleukin in atopic dermatitis and alopecia areata, with topline data expected in 2025.
Nektar Therapeutics (NKTR) ha riportato i risultati finanziari del terzo trimestre 2024, con ricavi di $24,1 milioni, senza variazioni rispetto al terzo trimestre 2023. La liquidità e gli investimenti ammontano a $249,0 milioni, in calo rispetto ai $329,4 milioni di fine 2023. L'azienda ha segnalato una perdita netta di $37,1 milioni ($0,18 per azione) rispetto ai $45,8 milioni ($0,24 per azione) del terzo trimestre 2023. Le spese operative sono diminuite a $58,5 milioni rispetto ai $69,0 milioni dell’anno precedente. Non da meno, Nektar ha annunciato la vendita del suo stabilimento di produzione di PEGilazione di Huntsville a Ampersand Capital Partners per un valore aziendale di $90 milioni. I progressi nel pipeline dell'azienda includono studi di fase 2b in corso su rezpegaldesleukin per la dermatite atopica e l'alopecia areata, con dati preliminari attesi nel 2025.
Nektar Therapeutics (NKTR) informó los resultados financieros del tercer trimestre de 2024, con ingresos de $24,1 millones, sin cambios con respecto al tercer trimestre de 2023. El efectivo y las inversiones se situaron en $249,0 millones, por debajo de los $329,4 millones a finales de 2023. La compañía reportó una pérdida neta de $37,1 millones ($0,18 por acción) en comparación con $45,8 millones ($0,24 por acción) en el tercer trimestre de 2023. Los gastos operativos disminuyeron a $58,5 millones desde $69,0 millones interanualmente. De manera notable, Nektar anunció la venta de su instalación de fabricación de PEGilación en Huntsville a Ampersand Capital Partners por un valor empresarial de $90 millones. El avance en la cartera de productos de la compañía incluye estudios en fase 2b en curso de rezpegaldesleukin para dermatitis atópica y alopecia areata, con datos preliminares esperados para 2025.
Nektar Therapeutics (NKTR)는 2024년 3분기 재무 결과를 보고했으며, 수익은 2,410만 달러로 2023년 3분기와 변동이 없었습니다. 현금 및 투자는 2억 4,900만 달러로, 2023년 말의 3억 2,940만 달러에서 감소했습니다. 회사는 3분기 3,710만 달러($0.18 주당)의 순손실을 보고했으며, 이는 2023년 3분기 4,580만 달러($0.24 주당)와 비교되었습니다. 운영비용은 전년 대비 6,850만 달러에서 5,850만 달러로 감소했습니다. 특히 Nektar는 앰퍼썬드 캐피탈 파트너스에 헌츠빌 PEGylation 제조 시설을 9천만 달러의 기업 가치를 가지고 매각한다고 발표했습니다. 회사의 파이프라인 진행 상황은 아토피 피부염 및 특정 탈모에 대한 rezpegaldesleukin의 진행 중인 2b상 연구를 포함하며, topline 데이터는 2025년에 예상됩니다.
Nektar Therapeutics (NKTR) a annoncé les résultats financiers du troisième trimestre 2024, avec des revenus de 24,1 millions de dollars, inchangés par rapport au troisième trimestre 2023. La trésorerie et les investissements s'élevaient à 249,0 millions de dollars, en baisse par rapport à 329,4 millions de dollars à la fin de 2023. L'entreprise a déclaré une perte nette de 37,1 millions de dollars (0,18 dollar par action) contre 45,8 millions de dollars (0,24 dollar par action) au troisième trimestre 2023. Les dépenses opérationnelles ont diminué à 58,5 millions de dollars contre 69,0 millions de dollars l'année précédente. Notamment, Nektar a annoncé la vente de son installation de fabrication de PEGylation à Huntsville à Ampersand Capital Partners pour une valeur d'entreprise de 90 millions de dollars. Les progrès du pipeline de l'entreprise comprennent des études de phase 2b en cours sur le rezpegaldesleukin dans la dermatite atopique et l'alopécie areata, les données clés étant attendues en 2025.
Nektar Therapeutics (NKTR) hat die Finanzzahlen für das dritte Quartal 2024 veröffentlicht, mit Einnahmen von 24,1 Millionen Dollar, unverändert im Vergleich zum dritten Quartal 2023. Das Bargeld und die Investitionen betrugen 249,0 Millionen Dollar, ein Rückgang von 329,4 Millionen Dollar zum Ende von 2023. Das Unternehmen berichtete über einen Nettoverlust von 37,1 Millionen Dollar (0,18 Dollar pro Aktie) im Vergleich zu 45,8 Millionen Dollar (0,24 Dollar pro Aktie) im dritten Quartal 2023. Die Betriebskosten sank auf 58,5 Millionen Dollar von 69,0 Millionen Dollar im Vorjahr. Bemerkenswerterweise gab Nektar die Verkäufe seiner Produktionsanlage für PEGylierung in Huntsville an Ampersand Capital Partners für einen Unternehmenswert von 90 Millionen Dollar bekannt. Der Fortschritt in der Pipeline des Unternehmens umfasst laufende Phase 2b-Studien zu rezpegaldesleukin bei atopischer Dermatitis und Alopecia Areata, mit topline Daten, die für 2025 erwartet werden.
- Cash position of $249.0 million expected to support operations into Q4 2026
- Sale of Huntsville facility for $90 million enterprise value
- Reduced net loss to $37.1 million from $45.8 million YoY
- Operating expenses decreased to $58.5 million from $69.0 million YoY
- Revenue increased to $69.3 million from $66.2 million for first nine months YoY
- Cash and investments declined from $329.4 million to $249.0 million since December 2023
- R&D expenses increased to $35.0 million from $24.1 million YoY
- Continued net losses ($37.1 million in Q3 2024)
- $14.3 million in non-cash restructuring and real estate impairment charges in first nine months
Insights
The Q3 2024 results show concerning financial metrics. Cash position declined to
The planned sale of the PEGylation manufacturing business for
The pipeline progress shows mixed signals. Rezpegaldesleukin's Phase 2b studies in atopic dermatitis and alopecia areata are advancing with data expected in 2025. The published Phase 1b data showing
However, the company's strategic shift to focus on I&I pipeline while divesting manufacturing operations represents a significant transformation. The success of rezpegaldesleukin in upcoming Phase 2b readouts will be important for the company's future direction.
Cash and investments in marketable securities on September 30, 2024 were
"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."
Summary of Financial Results
Revenue in the third quarter of 2024 was
Total operating costs and expenses in the third quarter of 2024 were
R&D expense in the third quarter of 2024 was
G&A expense was
Non-cash restructuring and impairment charges were less than
Net loss for the third quarter of 2024 was
Third Quarter 2024 and Recent Business Highlights
- In September 2024, Nektar presented several posters for rezpegaldesleukin (REZPEG) at the 2024 European Academy of Dermatology and Venereology (EADV) Congress. In addition to two trial-in-progress posters, new proteomic analyses were also presented, which showed that rezpegaldesleukin increased the protein levels of immune-regulating pathways and reduced specific serum proteins known to be elevated in patients with atopic dermatitis.
- In October 2024, Nektar and collaborators announced the publication of data from a Phase 1 trial evaluating NKTR-255 in combination with CD19/22 CAR-T cell therapy in patients with relapsed or refractory B-cell acute lymphoblastic leukemia (B-ALL) in Blood, an open-access journal of the American Society of Hematology. The data show that eight out of nine patients (
89% ) achieved complete remission, all without detectable measurable residual disease (MRD). - In October 2024, Nature Communications published results from Phase 1b studies of rezpegaldesleukin in two inflammatory skin diseases, demonstrating durable dose-dependent improvements in physician-assessed disease activity and patient-reported outcomes for both studies. Rezpegaldesleukin was evaluated in patients with moderate-to-severe atopic dermatitis (AD) (NCT04081350) or chronic plaque psoriasis (PsO) (NCT04119557). AD patients receiving high dose rezpegaldesleukin demonstrate an
83% improvement in EASI score after 12 weeks of treatment. EASI improvement of ≥75% (EASI-75) and vIGA-AD responses were maintained for 36 weeks after treatment discontinuation in71% and80% of week 12 responders, respectively. Results validate the role of IL-2-induced Treg proliferation and activation in the AD treatment paradigm, and support the advancement of rezpegaldesleukin in the Phase 2b study in AD. - In November, Nektar announced a definitive agreement with Ampersand Capital Partners to sell its commercial PEGylation manufacturing business in
Huntsville, Alabama for$90 million $70 million $20 million Huntsville -based facility will be spun out as a standalone Ampersand portfolio company and Ampersand has committed to invest additional growth equity capital into the new company. All of Nektar's employees at theHuntsville facility will be offered employment at the new portfolio company, ensuring continuity in the high-quality manufacturing and PEGylation expertise that longstanding customers trust and rely on. Nektar and the new Ampersand portfolio company will also enter into manufacturing supply agreements to meet Nektar's PEG reagent needs for rezpegaldesleukin and certain pipeline programs. The transaction will be subject to customary closing conditions and costs and is expected to close by December 2, 2024. Following the closing, Nektar will retain all rights to current and future royalty streams and milestones related to existing PEGylated product license agreements. Nektar will also be entitled to appoint a representative to the board of the new Ampersand portfolio company. - Enrollment remains on track for the two Phase 2b studies of REZPEG, one in patients with moderate-to-severe atopic dermatitis and one in patients with severe to very severe alopecia areata. Nektar expects topline data from these studies in the first half and in the second half of 2025, respectively.
Nektar also announced presentations at the following medical meetings:
2024 Society for Immunotherapy of Cancer (SITC) Annual Meeting
Late-breaking Abstract (LBA) 1489: " REStoring lymphoCytes Using NKTR-255 after chemoradiothErapy in solid tumors (RESCUE): Preplanned Interim Safety and Efficacy Analysis", Lin, S.
Presentation Type: Poster
ePoster will be on display on the SITC 2024 virtual meeting platform on Thursday, November 7, 2024, at 9:00 a.m. CST
2024 American College of Rheumatology (ACR) Convergence
Abstract 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
2024 American Society of Hematology (ASH) Annual Meeting
Abstract 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
Conference Call to Discuss Third 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 November 7, 2024.
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 December 8, 2024.
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. 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
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," "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.
Contact:
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 | September 30, 2024 | December 31, 2023 (1) | ||||||||
Current assets: | ||||||||||
Cash and cash equivalents | $ 30,109 | $ 35,277 | ||||||||
Short-term investments | 214,386 | 268,339 | ||||||||
Accounts receivable | - | 1,205 | ||||||||
Inventory, net | - | 16,101 | ||||||||
Other current assets | 8,933 | 9,779 | ||||||||
Assets held for sales | 33,053 | - | ||||||||
Total current assets | 286,481 | 330,701 | ||||||||
Long-term investments | 4,537 | 25,825 | ||||||||
Property, plant and equipment, net | 3,603 | 18,856 | ||||||||
Operating lease right-of-use assets | 8,826 | 18,007 | ||||||||
Other assets | 4,519 | 4,644 | ||||||||
Total assets | $ 307,966 | $ 398,033 | ||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||
Current liabilities: | ||||||||||
Accounts payable | 8,577 | 9,848 | ||||||||
Accrued expenses | 32,377 | 22,162 | ||||||||
Operating lease liabilities, current portion | 21,504 | 19,259 | ||||||||
Liabilities related to assets held for sale | 5,125 | - | ||||||||
Total current liabilities | 67,583 | 51,269 | ||||||||
Operating lease liabilities, less current portion | 86,758 | 98,517 | ||||||||
Liabilities related to the sales of future royalties, net | 97,829 | 112,625 | ||||||||
Other long-term liabilities | 6,912 | 4,635 | ||||||||
Total liabilities | 259,082 | 267,046 | ||||||||
Commitments and contingencies | ||||||||||
Stockholders' equity: | ||||||||||
Preferred stock | - | - | ||||||||
Common stock | 19 | 19 | ||||||||
Capital in excess of par value | 3,654,981 | 3,608,137 | ||||||||
Treasury stock | (3,000) | - | ||||||||
Accumulated other comprehensive income (loss) | 355 | 80 | ||||||||
Accumulated deficit | (3,603,471) | (3,477,249) | ||||||||
Total stockholders' equity | 48,884 | 130,987 | ||||||||
Total liabilities and stockholders' equity | $ 307,966 | $ 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 | ||||||||||
NEKTAR THERAPEUTICS | ||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||
(In thousands, except per share information) | ||||||||||||||
(Unaudited) | ||||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||
Revenue: | ||||||||||||||
Product sales | $ 8,015 | $ 5,822 | $ 20,689 | $ 15,198 | ||||||||||
Non-cash royalty revenue related to the sales of future royalties | 15,731 | 18,167 | 48,029 | 50,860 | ||||||||||
License, collaboration and other revenue | 378 | 155 | 534 | 179 | ||||||||||
Total revenue | 24,124 | 24,144 | 69,252 | 66,237 | ||||||||||
Operating costs and expenses: | ||||||||||||||
Cost of goods sold | 4,435 | 12,431 | 22,709 | 26,485 | ||||||||||
Research and development | 35,031 | 24,070 | 92,163 | 84,220 | ||||||||||
General and administrative | 18,957 | 21,147 | 59,616 | 60,097 | ||||||||||
Restructuring, impairment and costs of terminated program | 46 | 11,360 | 14,310 | 49,107 | ||||||||||
Impairment of goodwill | - | - | - | 76,501 | ||||||||||
Total operating costs and expenses | 58,469 | 69,008 | 188,798 | 296,410 | ||||||||||
Loss from operations | (34,345) | (44,864) | (119,546) | (230,173) | ||||||||||
Non-operating income (expense): | ||||||||||||||
Non-cash interest expense on liabilities related to the sales of future royalties | (6,020) | (5,910) | (17,959) | (18,467) | ||||||||||
Interest income | 3,437 | 5,211 | 11,558 | 14,392 | ||||||||||
Other income (expense), net | (120) | (335) | (255) | 100 | ||||||||||
Total non-operating income (expense), net | (2,703) | (1,034) | (6,656) | (3,975) | ||||||||||
Loss before provision for income taxes | (37,048) | (45,898) | (126,202) | (234,148) | ||||||||||
Provision (benefit) for income taxes | 9 | (61) | 20 | (171) | ||||||||||
Net loss | $ (37,057) | $ (45,837) | $ (126,222) | $ (233,977) | ||||||||||
Basic and diluted net loss per share | $ (0.18) | $ (0.24) | $ (0.62) | $ (1.23) | ||||||||||
Weighted average shares outstanding used in computing basic and diluted net loss per | 209,249 | 190,406 | 204,292 | 189,651 | ||||||||||
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SOURCE Nektar Therapeutics
FAQ
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