Nektar Therapeutics ((NKTR)) has held its Q1 earnings call. Read on for the main highlights of the call.
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Nektar Therapeutics’ recent earnings call highlighted a quarter marked by significant advancements in their REZPEG studies and a robust financial standing. Despite these positive strides, the company faces challenges from ongoing litigation with Lilly and non-cash losses from an equity investment.
Advancement of REZPEG in Phase 2 Studies
Nektar is making notable progress with rezpegaldesleukin (REZPEG), advancing it in three separate Phase 2 studies targeting atopic dermatitis, alopecia areata, and Type 1 diabetes. The REZOLVE-AD study for atopic dermatitis has successfully enrolled 400 patients, with top-line results anticipated in June 2025.
Strong Financial Position
The company concluded Q1 2025 with a solid financial foundation, boasting $220.7 million in cash and investments and no debt. This financial health provides a cash runway extending into Q4 2026, underscoring Nektar’s stability and potential for sustained operations.
Progress in Early-Stage Immunology Pipeline
Nektar is also advancing its early-stage immunology pipeline, with IND-enabling studies for NKTR-0165, a TNFR2 agonist antibody, on track for completion in 2025. The company plans to submit an IND filing, marking a significant step forward in their research and development efforts.
Upcoming Data Presentations
The company is set to present data from the NKTR-255 oncology program at the European Hematology Association Congress, which could provide further insights into their ongoing research and potential breakthroughs in oncology.
Ongoing Litigation with Lilly
Nektar is currently engaged in litigation with Lilly, a situation they believe has caused significant damage. The outcome of this legal battle remains uncertain, posing a potential risk to the company’s future operations and financial health.
Non-Cash Loss from Equity Method Investment
In Q1 2025, Nektar recorded a non-cash loss of $4.5 million from its equity method investment in Gannet Biochem, with expectations of a total loss of approximately $10 million for the year. This financial hit underscores some of the challenges the company faces despite its strong cash position.
Forward-Looking Guidance
Nektar’s forward-looking guidance emphasizes the progress in their immunology pipeline, particularly the advancement of REZPEG in three Phase 2 studies. The REZOLVE-AD Phase 2b study aims to establish safety and efficacy in atopic dermatitis, with results expected in June 2025. Additionally, the REZPEG-AA Phase 2b study in alopecia areata targets a December 2025 data release. Financially, the company projects a 2025 revenue of around $40 million, with R&D expenses between $110 million and $120 million, maintaining a strong cash position into Q4 2026.
In summary, Nektar Therapeutics’ earnings call reflects a company with promising advancements in its REZPEG studies and a solid financial footing. However, challenges such as ongoing litigation with Lilly and non-cash losses from investments present hurdles that the company must navigate. Investors and stakeholders will be keenly watching the outcomes of these developments and their impact on Nektar’s future trajectory.