Nektar Therapeutics (NKTR) Q1 2026 earnings summary

Executive summary

• REZPEG (rezpegaldesleukin) demonstrated strong efficacy and durability in phase IIb studies for atopic dermatitis and alopecia areata, supporting advancement to phase III trials in both indications, with positive 52-week results in alopecia areata.

• Phase III ZENITH-AD program for atopic dermatitis to begin by July 2026, with first data expected mid-2028 and BLA submission targeted for 2029; phase III alopecia areata trial to begin early 2027.

• Financial position strengthened by over $1 billion in cash and investments after major equity financings, ensuring funding through key clinical milestones.

• Net loss narrowed to $44.9 million ($1.82/share) in Q1 2026 from $50.9 million ($3.62/share) in Q1 2025.

• Early pipeline includes TNFR2 agonist (NKTR-0165) in preclinical collaboration for MS and NKTR-0166 advancing toward IND in 2027.

Financial highlights

• Ended Q1 2026 with $731.6 million in cash and investments, no debt; April financing added $351 million, bringing total to over $1 billion.

• Q1 2026 non-cash royalty revenue was $10.9 million; full-year revenue expected at $40–$45 million.

• Q1 R&D expenses were $35.7 million, up 17% year-over-year, driven by phase III preparation; full-year R&D guidance is $200–$250 million.

• Q1 G&A expenses were $13.4 million, down 45% year-over-year, mainly due to lower legal expenses; full-year G&A guidance is $60–$65 million.

• Q1 net loss was $44.9 million, or $1.82 per share; year-end 2026 cash expected at $800–$825 million.

Outlook and guidance

• Phase III atopic dermatitis trials to start July 2026, with first data mid-2028 and BLA submission in 2029; phase III alopecia areata trial to begin in early 2027.

• Off-treatment data for both indications expected in late 2026 and Q1 2027 to inform maintenance dosing strategies.

• Initial data from type 1 diabetes study expected in 2027; additional proof-of-concept study in a new indication planned for 2026.

• Sufficient cash and investments to fund operations for at least the next twelve months.

• Anticipate decrease in non-cash royalty revenue in 2026 as royalty terms for several products end.