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Nektar Therapeutics (NKTR)
NASDAQ:NKTR
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Nektar Therapeutics
(NASDAQ:NKTR)
47Neutral
Positive Factors
Clinical Collaboration
Nektar announced a clinical collaboration with TrialNet to evaluate rezpeg for the treatment of type 1 diabetes mellitus (T1D) in a Phase 2 study.
Trial Expertise
TrialNet's experience with teplizumab, the first FDA-approved treatment to delay Stage 3 T1D diagnosis, could be valuable for the development of rezpeg in T1D.
Negative Factors
Clinical and Commercial Risks
Risks include clinical, regulatory, commercial, competition, and dilution.
Nektar Therapeutics (NKTR) vs. S&P 500 (SPY)
Market Cap
$151.11M
Dividend YieldN/A
Average Volume (3M)2.56M
Price to Earnings (P/E)―
Beta (1Y)2.05
Revenue Growth5.53%
EPS Growth46.09%
CountryUS
Employees137
SectorHealthcare
Sector Strength78
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.84
Shares Outstanding184,458,280
10 Day Avg. Volume1,303,075
30 Day Avg. Volume2,558,212
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.62
Price to Cash Flow (P/CF)-0.90
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$5.38Price Target Upside556.10% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
Nektar Therapeutics Business Overview & Revenue Model
Company DescriptionNektar Therapeutics is a biopharmaceutical company, which engages in applying technology platforms to develop novel drug candidates. The company focuses on the therapies for cancer, autoimmune disease, and chronic pain. It operates through the United States and Europe geographical segments. The company was founded in 1990 and is headquartered in San Francisco, CA.
How the Company Makes MoneyNektar Therapeutics generates revenue through strategic collaborations and partnerships with other pharmaceutical companies, where it licenses its technology platforms and drug candidates. These agreements often include upfront payments, milestone payments based on the achievement of development, regulatory, and sales goals, as well as royalties on sales of commercialized products. Additionally, Nektar may conduct clinical trials and research funded by these partners, contributing to its revenue streams. Significant partnerships with major pharmaceutical companies help Nektar leverage its existing technologies while enabling shared risk in drug development and commercialization.
Nektar Therapeutics Financial Statement Overview
Summary
Nektar Therapeutics is facing significant financial challenges, characterized by ongoing losses and cash flow difficulties. The company's leverage is high, and despite some improvement in gross profit margins, overall profitability remains elusive. Strategic adjustments may be needed to enhance financial stability and growth prospects.Income Statement
The company has been struggling with profitability, as indicated by negative EBIT and net income. However, the gross profit margin has improved slightly in the TTM (Trailing-Twelve-Months), indicating better cost management. Revenue growth is stagnant, showcasing a challenging market environment.45
Neutral
Balance Sheet
Nektar Therapeutics has a high debt-to-equity ratio, reflecting significant leverage that could pose financial risks. The equity ratio has decreased, indicating a shrinking asset base in relation to equity. The return on equity remains negative, highlighting persistent profitability challenges.50
Neutral
Cash Flow
The company has negative free cash flow and a declining operating cash flow to net income ratio, indicating cash flow challenges. Free cash flow growth remains negative, suggesting ongoing difficulties in generating cash from operations.40
Negative
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 93.14M | 90.12M | 92.06M | 101.91M | 152.91M | 114.62M | Gross Profit |
| 63.15M | 53.48M | 70.42M | 77.01M | 133.44M | 93.24M | EBIT |
| -135.94M | -137.43M | -240.24M | -446.10M | -379.92M | -440.04M | EBITDA |
| -142.08M | -243.11M | -323.87M | -462.97M | -394.33M | -382.70M | Net Income Common Stockholders |
| -168.30M | -276.06M | -368.20M | -523.84M | -444.44M | -440.67M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 1.34B | 303.62M | 504.98M | 733.96M | 1.06B | 1.32B | Total Assets |
| 2.15B | 398.03M | 710.60M | 1.12B | 1.54B | 1.98B | Total Debt |
| 246.95M | 117.78M | 131.50M | 143.18M | 150.29M | 403.94M | Net Debt |
| 52.05M | 82.50M | 43.27M | 117.96M | -48.67M | 307.58M | Total Liabilities |
| 432.60M | 267.05M | 343.96M | 437.68M | 461.47M | 571.97M | Stockholders Equity |
| 1.72B | 130.99M | 366.64M | 679.51M | 1.08B | 1.41B |
| Cash Flow | Free Cash Flow | ||||
| -177.81M | -193.47M | -309.68M | -427.65M | -320.55M | -354.97M | Operating Cash Flow |
| -176.57M | -192.61M | -304.01M | -412.66M | -313.29M | -328.68M | Investing Cash Flow |
| 99.74M | 139.56M | 365.83M | 202.78M | 496.21M | 206.89M | Financing Cash Flow |
| 42.05M | 30.00K | 1.51M | 36.24M | -80.35M | 23.36M |
Nektar Therapeutics Technical Analysis
Negative
0.82
Price Trends
0.89
Negative
1.02
Negative
1.15
Negative
Market Momentum
-0.01
Positive
46.36
Neutral
33.89
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NKTR, the sentiment is Negative. The current price of 0.82 is below the 20-day moving average (MA) of 0.87, below the 50-day MA of 0.89, and below the 200-day MA of 1.15, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 46.36 is Neutral, neither overbought nor oversold. The STOCH value of 33.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NKTR.
Nektar Therapeutics Risk Analysis
Nektar Therapeutics disclosed 43 risk factors in its most recent earnings report. Nektar Therapeutics reported the most risks in the “Legal & Regulatory” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Nektar Therapeutics Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $10.34B | 20.83 | 23.13% | ― | 18.49% | 176.71% | |
79 Outperform | $2.87B | 12.33 | 38.89% | ― | 31.85% | ― | |
78 Outperform | $5.57B | 15.72 | 27.90% | ― | -6.36% | 4.57% | |
77 Outperform | $13.45B | 32.05 | 8.05% | ― | 17.35% | 151.40% | |
60 Neutral | $13.17B | 249.74 | 0.76% | ― | 14.76% | -88.32% | |
49 Neutral | $6.90B | 0.02 | -54.05% | 2.46% | 24.91% | -3.14% | |
47 Neutral | $151.11M | ― | -161.63% | ― | 5.53% | 46.09% |
* Healthcare Sector Average
Performance Comparison
NKTR
Nektar Therapeutics
0.82
-0.04
-4.65%
ACAD
ACADIA Pharmaceuticals
16.77
-1.96
-10.46%
ALKS
Alkermes
33.41
4.53
15.69%
BMRN
BioMarin Pharmaceutical
70.54
-13.85
-16.41%
EXEL
Exelixis
37.20
14.59
64.53%
INCY
Incyte
67.73
9.19
15.70%
Nektar Therapeutics Earnings Call Summary
Earnings Call Date: Mar 12, 2025 | % Change Since: 0.00% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant progress in clinical trials, financial stability, and strategic partnerships, particularly in autoimmune and inflammatory disease areas. However, challenges remain with potential placebo effects in trials and limited revenue growth in the near term. Overall, the call reflects a cautiously optimistic outlook with a balance of strategic achievements and ongoing challenges.Highlights
Successful Enrollment and Study Progress
Nektar completed enrollment for two Phase 2b studies in atopic dermatitis (REZOLVE-AD) and alopecia areata (REZOLVE-AA) on schedule, demonstrating strong interest from patients and physicians. Topline data for atopic dermatitis is expected in Q2 2025 and for alopecia areata in Q4 2025.
Financial Stability
Nektar ended 2024 with $269 million in cash and investments and a cash runway extending into Q4 2026, ensuring financial stability for ongoing and future projects.
Fast Track Designation for REZPEG
REZPEG received Fast Track designation from the FDA for the treatment of moderate to severe atopic dermatitis, facilitating a closer collaboration with the agency for future development plans.
Collaboration with TrialNet for Type 1 Diabetes Study
Nektar partnered with TrialNet to conduct a Phase 2 trial of REZPEG in type 1 diabetes, aiming to preserve insulin-producing beta cells and improve patient outcomes.
Advancement in Preclinical Programs
The company is advancing its TNFR2 agonist antibody program, NKTR-0165, with plans for an IND submission in H2 2025, and developing a pipeline of bispecific molecules pairing TNFR2 agonism with other targets.
Lowlights
Challenges in Atopic Dermatitis Study
The possibility of high placebo effects in atopic dermatitis studies due to rising placebo effect trends in the US presents a challenge, though mitigated by strategic study designs.
Limited Revenue Growth Expected for 2025
Nektar projects 2025 revenue of $40-50 million, primarily from non-cash royalties, following the sale of its Huntsville manufacturing facility, indicating limited revenue growth.
Ongoing Net Loss
Despite positive quarterly net income, Nektar reported a full-year net loss of $119 million for 2024, highlighting ongoing financial challenges alongside achievements.
Company Guidance
During Nektar Therapeutics' Fourth Quarter 2024 financial results conference call, the company provided several key metrics and forward-looking statements. Nektar completed enrollment for its Nektar-sponsored Phase 2b studies: the 400-patient REZOLVE-AD trial for atopic dermatitis and the 90-patient REZOLVE-AA study for alopecia areata. Results from these trials are expected in the second and fourth quarters of 2025, respectively. The company also announced a collaboration with TrialNet for a Phase 2 trial of REZPEG in 66 patients with new onset type 1 diabetes. Financially, Nektar ended 2024 with $269.1 million in cash and investments, projecting this runway to extend into the fourth quarter of 2026, and anticipates 2025 revenue between $40 million and $50 million. Additionally, they announced plans for an IND submission for their preclinical program NKTR-0165 in the second half of 2025.Nektar Therapeutics Corporate Events
M&A TransactionsBusiness Operations and Strategy
Nektar Therapeutics Sells Manufacturing Facility for $90M
Positive
Nov 4, 2024
Nektar Therapeutics has entered into an agreement to sell its Huntsville, Alabama manufacturing facility to Ampersand Capital Partners for $90 million, including cash and equity. This strategic move will allow Nektar to focus on its core R&D programs in immunology while ensuring continuity in supply for existing customers. Ampersand plans to invest further in the facility, transforming it into a standalone business, highlighting its commitment to growth in the life sciences sector.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.