Nektar Therapeutics (NKTR) Q3 2024 earnings summary

Executive summary

• Advanced immunology and inflammation pipeline, with REZPEG phase II-B studies for atopic dermatitis and alopecia areata on track for 2025 data readouts; rapid enrollment and positive early data reported.

• Announced sale of Huntsville manufacturing facility/business for $90M ($70M cash, $20M equity), expected to close by December 2, 2024, strengthening financial position and extending cash runway.

• Published positive phase I-B data for REZPEG in Nature Communications, supporting further clinical development.

• Progressed preclinical programs NKTR-0165 (TNFR2 agonist) and NKTR-422 (PEG-CSF1), with IND-enabling studies and first data presentations scheduled.

• NKTR-255 oncology program showed enhanced CAR-T efficacy and potential in restoring lymphocyte counts post-chemoradiation.

Financial highlights

• Q3 2024 revenue was $24.1M, flat year-over-year; nine-month revenue rose to $69.3M from $66.2M.

• Q3 2024 net loss was $37.1M ($0.18/share), improved from $45.8M ($0.24/share) in Q3 2023; nine-month net loss narrowed to $126.2M.

• Cash and investments totaled $249M at September 30, 2024, down from $329.4M at year-end 2023.

• Sale of manufacturing facility to add $90M ($70M cash, $20M equity), expected to close in Q4 2024.

• Operating costs and expenses in Q3 2024 were $58.5M, down from $69.0M in Q3 2023; nine-month expenses fell to $188.8M from $296.4M.

Outlook and guidance

• Cash and investments expected to fund operations into Q4 2026.

• Top-line data from phase II-B REZPEG studies in atopic dermatitis expected in H1 2025, and in alopecia areata in H2 2025.

• IND submission for NKTR-0165 planned for H2 2025; at least one early-stage program to enter the clinic in 2025.

• Product sales expected to rise for 2024, but non-cash royalty revenue will decrease due to lower royalty rates.

• The company estimates it has sufficient working capital to fund current business plans for at least the next twelve months.