Nektar Therapeutics (NKTR) AI Stock Analysis

• Market Cap: $390.31M
• Dividend Yield: N/A
• Average Volume (3M): 2.23M
• Price to Earnings (P/E): ―
• Beta (1Y): 3.73
• Revenue Growth: -3.24%
• EPS Growth: 31.00%
• Country: US
• Employees: 61
• Sector: Healthcare
• Sector Strength: 38
• Industry: Biotechnology
• EPS (TTM): -3.60
• Shares Outstanding: 17,301,062
• 10 Day Avg. Volume: 592,229
• 30 Day Avg. Volume: 2,226,615
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.29
• Enterprise Value/Revenue: 1.28
• Enterprise Value/Gross Profit: 1.71
• Enterprise Value/Ebitda: -1.14
• 1Y Price Target: $95.80
• Price Target Upside: 324.65% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 50 Neutral
• Price Target: $22.00 ▼(-2.48% Downside)

Nektar Therapeutics' stock score is primarily impacted by its financial struggles, including declining revenues and negative profitability. Despite technical indicators suggesting short-term positive momentum and successful clinical trial results, the company's valuation remains unattractive due to ongoing losses. The earnings call provided some reassurance with strong cash reserves and promising pipeline advancements, but litigation risks and financial instability remain significant concerns.

Positive Factors

Clinical Trials

The robust Phase 2b REZOLVE-AD trial confirmed REZPEG as a novel MOA with strong induction efficacy and clean safety on par with (if not better than) current market leaders in atopic dermatitis.

Financial Stability

Nektar had cash and cash equivalents of approximately $221M, which is believed to be sufficient to fund operations into 4Q26.

Market Potential

A large attractive opportunity is seen for REZPEG to emerge as a valuable addition to the treatment landscape as a novel, broader and importantly, safe mechanism.

Negative Factors

Clinical Data Uncertainty

The full data from the induction period are yet to be presented, leaving some uncertainty about the complete efficacy of the treatment.

Earnings Report

The company reported revenue of $10.5M and a net loss of $0.24 per share, which was below consensus estimates.

Legal Issues

The lawsuit initiated in 2023 by NKTR against LLY makes a compelling case that LLY misrepresented REZPEG's activity in atopic dermatitis and psoriasis, while contriving ISRs as a significant tolerability issue.

Nektar Therapeutics Business Overview & Revenue Model

Company Description

Nektar Therapeutics is a biopharmaceutical company based in San Francisco, California, specializing in the development of innovative drug candidates for the treatment of cancer, autoimmune disease, and chronic pain. The company leverages its proprietary PEGylation and polymer conjugate technology platforms to develop new therapeutics that aim to improve the efficacy and safety profile of existing drugs. Nektar's pipeline includes a range of investigational medicines, with a focus on oncology and immunology.

How the Company Makes Money

Nektar Therapeutics generates revenue primarily through collaborative development and licensing agreements with major pharmaceutical companies. These partnerships often involve upfront payments, milestone payments based on specific drug development achievements, and royalties on future sales of successfully commercialized products. The company's revenue streams are significantly influenced by the progress and success of its drug candidates in clinical trials and subsequent approval by regulatory bodies. Additionally, Nektar may earn revenue from the sale of products that are commercialized independently or in collaboration with partners. Licensing its proprietary technology for use by other biopharmaceutical companies also contributes to its income.

Nektar Therapeutics Financial Statement Overview

Summary

Nektar Therapeutics is experiencing significant financial challenges with declining revenues, persistent losses, high leverage, and negative cash flow. The high gross profit margin is overshadowed by substantial net losses and a weakening balance sheet. Improvement in revenue growth, cost control, and financial restructuring is necessary.

Income Statement

Nektar Therapeutics' income statement shows declining revenues in recent years with a significant net loss. The TTM (Trailing-Twelve-Months) gross profit margin is 74.58%, showing efficient cost management, but the net profit margin is deeply negative at -152.52%, indicating ongoing operational challenges. Revenue has decreased over the years, and the EBIT and EBITDA margins are negative, reflecting sustained operating losses.

Balance Sheet

The balance sheet reveals financial stress with a high debt-to-equity ratio of 7.30 in the TTM period, indicating high leverage. The equity ratio has significantly dropped to 5.36%, highlighting a decrease in stockholders' equity relative to total assets. Return on equity is negative at -968.24%, underscoring significant losses relative to shareholders' investment. The company needs to address its capital structure to improve financial stability.

Cash Flow

Cash flow analysis shows Nektar Therapeutics has had negative free cash flow, with a slight increase in operating cash flow to net income ratio to 1.33 in TTM, suggesting some improvement in cash efficiency. However, the free cash flow to net income ratio remains negative at -1.34, indicating cash outflows exceed the losses. The company should focus on improving its cash flow management to sustain operations.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	98.43M	90.12M	92.06M	101.91M	152.91M
Gross Profit	67.74M	56.35M	70.42M	77.01M	133.44M
EBITDA	-86.70M	-243.11M	-323.87M	-462.97M	-394.33M
Net Income	-118.96M	-276.06M	-368.20M	-523.84M	-444.44M
Balance Sheet
Total Assets	303.85M	398.03M	710.60M	1.12B	1.54B
Cash, Cash Equivalents and Short-Term Investments	255.23M	303.62M	504.98M	733.96M	1.06B
Total Debt	102.56M	117.78M	131.50M	143.18M	150.29M
Total Liabilities	243.11M	267.05M	343.96M	437.68M	461.47M
Stockholders Equity	60.74M	130.99M	366.64M	679.51M	1.08B
Cash Flow
Free Cash Flow	-177.18M	-193.47M	-309.68M	-427.65M	-320.55M
Operating Cash Flow	-175.71M	-192.61M	-304.01M	-412.66M	-313.29M
Investing Cash Flow	142.57M	139.56M	365.83M	202.78M	496.21M
Financing Cash Flow	42.12M	30.00K	1.51M	36.24M	-80.35M

Nektar Therapeutics Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 22.56
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NKTR, the sentiment is Neutral. The current price of 22.56 is below the 20-day moving average (MA) of 24.02, above the 50-day MA of 18.70, and above the 200-day MA of 14.97, indicating a neutral trend. The MACD of 0.78 indicates Positive momentum. The RSI at 50.77 is Neutral, neither overbought nor oversold. The STOCH value of 36.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NKTR.

Nektar Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FDMT	52 Neutral	$280.26M	―	-32.97%	―	―	―
Sector *	51 Neutral	$7.38B	0.42	-62.86%	2.37%	15.61%	-1.95%
NKTR	50 Neutral	$390.31M	―	-189.46%	―	-3.24%	31.00%
NKTX	39 Underperform	$146.88M	―	-26.10%	―	―	30.76%
RAPT	39 Underperform	$167.01M	―	-75.60%	―	―	-2.29%
ALDX	37 Underperform	$309.06M	―	-65.19%	―	―	-47.28%
KOD	35 Underperform	$426.86M	―	-108.92%	―	―	32.58%

Nektar Therapeutics Corporate Events

Nektar Therapeutics Announces Public Offering of Shares

On June 30, 2025, Nektar Therapeutics announced an underwritten public offering of 4,255,320 shares of its common stock, priced at $23.50 per share, expected to close on July 2, 2025. The offering, managed by Jefferies LLC and other underwriters, is projected to yield approximately $93.7 million in net proceeds, with potential to increase to $107.8 million if additional shares are purchased. The funds are intended for general corporate purposes, including research and development and clinical advancement of drug candidates, potentially impacting the company’s financial standing and operational capabilities.

The most recent analyst rating on (NKTR) stock is a Buy with a $90.00 price target. To see the full list of analyst forecasts on Nektar Therapeutics stock, see the NKTR Stock Forecast page.

Nektar Therapeutics Regains Nasdaq Compliance by June 2025

On April 3, 2025, Nektar Therapeutics was notified by Nasdaq that it was not in compliance with the Minimum Bid Price Rule, as its stock price had fallen below $1.00 for 30 consecutive trading days. However, by June 23, 2025, the company regained compliance by maintaining a stock price of at least $1.00 for 10 consecutive business days, ensuring its continued listing on The Nasdaq Capital Market.

The most recent analyst rating on (NKTR) stock is a Buy with a $90.00 price target. To see the full list of analyst forecasts on Nektar Therapeutics stock, see the NKTR Stock Forecast page.

Nektar Therapeutics Announces Positive Phase 2b Trial Results

On June 24, 2025, Nektar Therapeutics announced the successful results of its Phase 2b REZOLVE-AD clinical trial for rezpegaldesleukin, a treatment for moderate-to-severe atopic dermatitis. The trial, involving 393 patients, showed statistically significant improvements in the primary and key secondary endpoints, including Eczema Area and Severity Score (EASI) and Itch Numerical Rating Score (NRS), across all dosage arms compared to placebo. The treatment demonstrated a robust dose-dependent reduction in inflammatory biomarkers and maintained a consistent safety profile with no increased risk of serious adverse events. These results highlight the potential of rezpegaldesleukin as a first-in-class immune-modulator for dermatological diseases, with further data expected in early 2026.

The most recent analyst rating on (NKTR) stock is a Buy with a $105.00 price target. To see the full list of analyst forecasts on Nektar Therapeutics stock, see the NKTR Stock Forecast page.

Nektar Therapeutics Approves Reverse Stock Split

On May 23, 2025, Nektar Therapeutics‘ stockholders approved a reverse stock split, which was later confirmed by the Board to be a one-for-fifteen split. This adjustment will take effect on June 8, 2025, with trading on a split-adjusted basis commencing on June 9, 2025, under the existing symbol ‘NKTR’. The reverse stock split aims to consolidate shares, potentially impacting the company’s stock market performance and shareholder value.

The most recent analyst rating on (NKTR) stock is a Buy with a $7.00 price target. To see the full list of analyst forecasts on Nektar Therapeutics stock, see the NKTR Stock Forecast page.

Nektar Therapeutics Elects New Board, Approves Key Proposals

At the Annual Meeting of Stockholders held on May 23, 2025, Nektar Therapeutics announced the election of new board members and approved several key proposals. These included amendments to increase authorized shares and implement a reverse stock split, as well as the ratification of Ernst & Young LLP as the independent accounting firm for 2025. These decisions are expected to impact the company’s strategic direction and shareholder value.

The most recent analyst rating on (NKTR) stock is a Buy with a $6.00 price target. To see the full list of analyst forecasts on Nektar Therapeutics stock, see the NKTR Stock Forecast page.