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Nektar Therapeutics (NKTR)
NASDAQ:NKTR
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Nektar Therapeutics
(NASDAQ:NKTR)
Rating:46Neutral
Price Target:
$0.50
▼(-25.37%Downside)
Positive Factors
Clinical Trials
The REZOLVE-AD study has a strong scientific rationale and encouraging Phase 1b data, indicating a high likelihood of achieving its primary endpoint.
Financial Position
Nektar had cash and cash equivalents of approximately $221M, which is believed to be sufficient to fund operations into 4Q26.
Negative Factors
Financial Performance
The company reported revenue of $10.5M and a net loss of $0.24 per share, which was below consensus estimates.
Market Competition
Increasing competition has raised the bar in several immunology and inflammation indications, including atopic dermatitis and alopecia areata.
Nektar Therapeutics (NKTR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$125.53M
Dividend YieldN/A
Average Volume (3M)2.15M
Price to Earnings (P/E)―
Beta (1Y)2.36
Revenue Growth-3.24%
EPS Growth31.00%
CountryUS
Employees61
SectorHealthcare
Sector Strength40
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.24
Shares Outstanding186,103,590
10 Day Avg. Volume1,860,046
30 Day Avg. Volume2,152,832
Financial Highlights & Ratios
PEG Ratio-0.03
Price to Book (P/B)2.03
Price to Sales (P/S)0.00
P/FCF Ratio-0.62
Enterprise Value/Market Cap1.34
Enterprise Value/Revenue0.45
Enterprise Value/Gross Profit2.48
Enterprise Value/Ebitda-0.32
Forecast
1Y Price Target
$5.10Price Target Upside661.19% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
Nektar Therapeutics Business Overview & Revenue Model
Company DescriptionNektar Therapeutics is a biopharmaceutical company that focuses on developing a pipeline of drug candidates that utilize its proprietary PEGylation and advanced polymer conjugate technology platforms. The company operates primarily in the healthcare sector, targeting therapeutic areas including oncology, immunology, and pain management. Nektar's portfolio includes a range of investigational medicines designed to address unmet medical needs by enhancing the efficacy and tolerability of existing drug therapies.
How the Company Makes MoneyNektar Therapeutics generates revenue through a combination of product sales, licensing agreements, and strategic collaborations with other pharmaceutical companies. The company earns money by developing proprietary drug candidates and either bringing them to market themselves or licensing the technology to other firms. Revenue streams are also supplemented by milestone payments and royalties from partnerships with larger pharmaceutical companies that utilize Nektar's technology platforms in their drug development processes. These collaborations often involve upfront payments, research funding, and shared profits from successful commercialization of jointly developed products.
Nektar Therapeutics Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q1-2025)
| % Change Since: 8.06%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Positive
Nektar Therapeutics presented a quarter with significant advancements in their REZPEG studies and a strong financial position. However, the ongoing litigation with Lilly and non-cash losses from an equity investment present challenges.Q1-2025 Updates
Positive Updates
Advancement of REZPEG in Phase 2 Studies
Nektar is advancing rezpegaldesleukin (REZPEG) in three separate Phase 2 studies, including atopic dermatitis, alopecia areata, and Type 1 diabetes. The REZOLVE-AD study for atopic dermatitis has enrolled 400 patients, and top-line results are expected in June 2025.
Strong Financial Position
Nektar ended Q1 2025 with $220.7 million in cash and investments and no debt, projecting a runway into Q4 2026.
Progress in Early-Stage Immunology Pipeline
The IND-enabling studies for NKTR-0165, a TNFR2 agonist antibody, are on track for completion in 2025, with plans to submit an IND filing.
Upcoming Data Presentations
Data from the NKTR-255 oncology program will be presented at the European Hematology Association Congress.
Negative Updates
Ongoing Litigation with Lilly
Nektar is engaged in litigation with Lilly, which they believe has caused them significant damage. The outcome and potential impact of the litigation are not yet clear.
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, expecting a total loss of approximately $10 million for the year.
Company Guidance
During Nektar Therapeutics' Q1 2025 financial results call, the company provided guidance regarding multiple metrics related to their pipeline and financial health. They highlighted the progress of their immunology pipeline, focusing on the advancement of rezpegaldesleukin (REZPEG) in three Phase 2 studies. The REZOLVE-AD Phase 2b study, with 400 patients, aims to establish safety and efficacy in atopic dermatitis, with results from the 16-week induction period expected in June 2025. They also discussed the REZPEG-AA Phase 2b study in alopecia areata, targeting a December 2025 data release. Financially, the company maintains a strong position with $220.7 million in cash and no debt, projecting a cash runway into Q4 2026. They expect 2025 revenue to be around $40 million, with R&D expenses between $110 million and $120 million. The company is preparing for a quiet period in June ahead of the REZPEG data release.Nektar Therapeutics Financial Statement Overview
Summary
Nektar Therapeutics is facing financial difficulties with declining revenue, negative profitability margins, and high leverage. However, cash reserves provide some liquidity support, though ongoing cash burn poses a risk.Income Statement
Nektar Therapeutics has faced declining revenue from 2020 to 2024, with a notable decrease in gross profit and persistent negative EBIT and net income. The revenue growth rate is negative, indicating financial strain. Margins are weak, with a negative net profit margin and declining EBIT and EBITDA margins, highlighting ongoing profitability challenges.42
Neutral
Balance Sheet
The balance sheet presents a high debt-to-equity ratio, indicating significant leverage. Stockholders' equity has decreased over the years, and the equity ratio shows a declining trend, raising concerns about financial stability. However, cash and short-term investments provide some liquidity cushion.50
Neutral
Cash Flow
Nektar's cash flow statement reveals negative operating and free cash flows, indicating cash burn. The free cash flow to net income ratio is unfavorable, and operating cash flow to net income is negative. Despite positive investing cash flow, the company's cash position is under pressure.45
Neutral
| 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 | 53.48M | 70.42M | 77.01M | 133.44M | EBIT |
| -105.20M | -137.43M | -240.24M | -446.10M | -379.92M | EBITDA |
| -86.70M | -243.11M | -323.87M | -462.97M | -394.33M | Net Income Common Stockholders |
| -118.96M | -276.06M | -368.20M | -523.84M | -444.44M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 255.23M | 303.62M | 504.98M | 733.96M | 1.06B | Total Assets |
| 303.85M | 398.03M | 710.60M | 1.12B | 1.54B | Total Debt |
| 102.56M | 117.78M | 131.50M | 143.18M | 150.29M | Net Debt |
| 58.31M | 82.50M | 43.27M | 117.96M | -48.67M | 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
Negative
0.67
Price Trends
0.69
Negative
0.79
Negative
0.99
Negative
Market Momentum
>-0.01
Positive
48.73
Neutral
40.48
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 0.67 is below the 20-day moving average (MA) of 0.69, below the 50-day MA of 0.69, and below the 200-day MA of 0.99, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 48.73 is Neutral, neither overbought nor oversold. The STOCH value of 40.48 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 46 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 3 New Risks
1.
We may seek orphan drug status or Breakthrough Therapy or Fast Track designations or other designation for one or more of our drug candidates, but even if any such designation or status is granted, it may not lead to a faster development process or regulatory review and may not increase the likelihood that our drug candidates will receive marketing approval, and we may be unable to maintain any benefits associated with such designations or status, including market exclusivity. Q4, 2024
2.
Like many companies, we may use artificial intelligence (AI) technologies, including generative AI, to efficiently grow and manage our business. These technologies have increasingly been the focus of attention for lawmakers and regulators around the globe. Q4, 2024
3.
Even if we receive regulatory approval of our drug candidates, we will be subject to ongoing regulatory obligations and continued regulatory review, which may result in significant additional expense and we may be subject to penalties if we fail to comply with regulatory requirements or experience unanticipated problems with our drug candidates. Q4, 2024
Nektar Therapeutics Peers Comparison
Overall Rating
UnderperformOutperform
Sector (53)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
53 Neutral | $5.14B | 3.23 | -45.01% | 2.85% | 17.55% | -0.69% | |
46 Neutral | $125.53M | ― | -189.46% | ― | -3.24% | 31.00% | |
44 Neutral | $161.67M | ― | -32.97% | ― | ― | ― | |
39 Underperform | $124.18M | ― | -26.10% | ― | ― | 30.76% | |
39 Underperform | $162.72M | ― | -75.60% | ― | ― | -2.29% | |
37 Underperform | $132.97M | ― | -65.19% | ― | ― | -47.28% | |
35 Underperform | $181.51M | ― | -108.92% | ― | ― | 32.58% |
* Healthcare Sector Average
Performance Comparison
NKTR
Nektar Therapeutics
0.67
-0.83
-55.33%
ALDX
Aldeyra Therapeutics
2.20
-1.59
-41.95%
KOD
Kodiak Sciences
3.58
0.58
19.33%
RAPT
RAPT Therapeutics
0.98
-3.10
-75.98%
NKTX
Nkarta
1.74
-4.73
-73.11%
FDMT
4D Molecular Therapeutics
3.42
-21.48
-86.27%
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.