Nektar Therapeutics (NKTR) Q2 2024 earnings summary

Executive summary

• Rezpegaldesleukin (Rezpeg) advanced in two Phase II-B studies for atopic dermatitis and alopecia areata, with enrollment on track and top-line data expected in 2025.

• NKTR-255 showed strong results in CAR T-cell therapy combinations, with multiple studies confirming re-expansion of CAR T cells and improved relapse-free survival; data readouts expected in 2024.

• Preclinical TNFR2 agonist antibody NKTR-0165 is progressing with IND-enabling studies ongoing and first-in-human trials planned for mid-2025.

• The company maintains a strong financial position with $290.6 million in cash and investments and no debt, supporting operations into Q3 2026.

• Significant restructuring in 2022 and 2023 included workforce reductions and subleasing of facilities to reduce costs.

Financial highlights

• Q2 2024 revenue was $23.5 million, up 15% year-over-year; H1 2024 revenue was $45.1 million.

• R&D expense for Q2 was $29.7 million; full-year R&D guidance is $120–$130 million.

• G&A expense for Q2 was $20.5 million; full-year G&A guidance is $70–$75 million.

• Q2 net loss was $52.4 million ($0.25 per share); non-GAAP net loss excluding impairment was $39.1 million ($0.19 per share).

• Product sales in Q2 2024 were $6.6 million; non-cash royalty revenue was $16.8 million.

Outlook and guidance

• Cash runway extends into Q3 2026, covering key data milestones for Rezpeg and NKTR-0165 studies.

• Top-line data for phase II-B Rezpeg in atopic dermatitis expected in H1 2025; alopecia areata data expected mid-2025.

• IND submission for NKTR-0165 planned for mid-2025; first-in-human studies to begin in H1 2025.

• Full-year 2024 revenue, R&D, and G&A expense guidance reaffirmed.

• Non-cash royalty revenue is expected to decrease for full year 2024 due to lower royalty rates from UCB.