Nektar Therapeutics (NKTR) AI Stock Analysis

• Market Cap: $547.35M
• Dividend Yield: N/A
• Average Volume (3M): 724.95K
• Price to Earnings (P/E): ―
• Beta (1Y): 3.76
• Revenue Growth: -19.56%
• EPS Growth: 35.55%
• Country: US
• Employees: 61
• Sector: Healthcare
• Sector Strength: 48
• Industry: Biotechnology
• EPS (TTM): -2.95
• Shares Outstanding: 19,018,574
• 10 Day Avg. Volume: 795,587
• 30 Day Avg. Volume: 724,945
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.67
• Enterprise Value/Revenue: 4.87
• Enterprise Value/Gross Profit: 5.86
• Enterprise Value/Ebitda: -4.07
• 1Y Price Target: $96.17
• Price Target Upside: 228.45% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 56 Neutral
• Price Target: $26.00 ▼(-11.20% Downside)

Nektar Therapeutics' overall stock score is primarily impacted by its precarious financial performance, characterized by significant losses and high leverage. However, strong technical indicators and positive developments from the earnings call and corporate events provide some optimism. The valuation remains a concern due to negative earnings, but the potential in clinical advancements and market opportunities offers a positive outlook.

Positive Factors

Clinical Data

REZPEG's therapeutic profile is viewed favorably as a novel mechanism of action.

Financial Performance

Nektar reported revenue of $11.2M and a net loss per share that was better than the consensus estimate, indicating financial performance exceeding expectations.

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

Competition

NKTR’s phase IIb rezpeg data in atopic dermatitis shows efficacy below what Dupixent showed at the approved dose.

Market Positioning

Questions from the market are expected around where rezpeg may ultimately fit, particularly in the context of positive physician views of Dupixent.

Safety Concerns

Local injection site reactions were seen in 69.7% of rezpeg patients, though most were mild or moderate.

Nektar Therapeutics Business Overview & Revenue Model

Company Description

Nektar Therapeutics, a biopharmaceutical company, focuses on discovering and developing medicines in areas of unmet medical need in the United States and internationally. The company's products include Bempegaldesleukin, a CD122-preferential interleukin-2 (IL-2) pathway agonist, which is in phase 3 clinical trial to treat metastatic melanoma, renal cell carcinoma, muscle-invasive bladder cancer, squamous cell carcinoma of the head and neck, and adjuvant melanoma; phase 2 clinical trial for the treatment of renal cell carcinoma, non-small cell lung cancer, and urothelial cancer; phase 1/2A clinical trial to treat squamous cell carcinoma of the head and neck; phase 1/2 clinical trial for the treatment of solid tumors; and phase 1B clinical trial to treat COVID-19. It is also developing NKTR-358, a cytokine Treg stimulant that is in phase 2 clinical trial for the treatment of systemic lupus erythematosus and ulcerative colitis, as well as phase 1B clinical trial to treat atopic dermatitis and psoriasis; NKTR-255, an IL-15 receptor agonist, which is in phase 1/2 clinical trial for the treatment of non-Hodgkin's lymphoma and multiple myeloma, and head and neck cancer and colorectal cancer; and NKTR-262, a toll-like receptor agonist that is in phase 1/2 clinical trial to treat solid tumors, as well as various other drug candidates. The company has collaboration agreements with Takeda Pharmaceutical Company Ltd.; AstraZeneca AB; UCB Pharma S.A.; F. Hoffmann-La Roche Ltd; Bausch Health Companies Inc.; Pfizer Inc.; Amgen Inc.; UCB Pharma (Biogen); Bristol-Myers Squibb Company; Baxalta Incorporated; Eli Lilly and Company; Merck KGaA; and SFJ Pharmaceuticals, Inc. Nektar Therapeutics was incorporated in 1990 and is headquartered in San Francisco, California.

How the Company Makes Money

Nektar Therapeutics generates revenue primarily through the development and commercialization of its pharmaceutical products, including licensing agreements and collaborations with larger pharmaceutical companies. The company earns money from upfront payments, milestone payments, and royalties on sales from its partnered products. Significant partnerships with major pharmaceutical companies, including Bristol-Myers Squibb and Eli Lilly, contribute to its revenue through collaborative research and development efforts. Additionally, Nektar may also generate revenue from grants and funding for its research initiatives.

Nektar Therapeutics Financial Statement Overview

Summary

Nektar Therapeutics is experiencing significant financial difficulties, with declining revenues, persistent losses, high leverage, and negative cash flow. Despite a high gross profit margin, the company's financial health is undermined by substantial net losses and a weakening balance sheet.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	74.93M	98.43M	90.12M	92.06M	101.91M	152.91M
Gross Profit	62.31M	67.74M	53.48M	70.42M	77.01M	133.44M
EBITDA	-89.75M	-86.70M	-243.11M	-323.87M	-462.97M	-394.33M
Net Income	-122.27M	-118.96M	-276.06M	-368.20M	-523.84M	-444.44M
Balance Sheet
Total Assets	207.53M	303.85M	398.03M	710.60M	1.12B	1.54B
Cash, Cash Equivalents and Short-Term Investments	175.90M	255.23M	303.62M	504.98M	733.96M	1.06B
Total Debt	96.16M	102.56M	117.78M	131.50M	143.18M	150.29M
Total Liabilities	231.75M	243.11M	267.05M	343.96M	437.68M	461.47M
Stockholders Equity	-24.21M	60.74M	130.99M	366.64M	679.51M	1.08B
Cash Flow
Free Cash Flow	-186.07M	-177.18M	-193.47M	-309.68M	-427.65M	-320.55M
Operating Cash Flow	-184.91M	-175.71M	-192.61M	-304.01M	-412.66M	-313.29M
Investing Cash Flow	199.63M	142.57M	139.56M	365.83M	202.78M	496.21M
Financing Cash Flow	314.00K	42.12M	30.00K	1.51M	36.24M	-80.35M

Nektar Therapeutics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 29.28
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NKTR, the sentiment is Positive. The current price of 29.28 is above the 20-day moving average (MA) of 25.24, above the 50-day MA of 23.72, and above the 200-day MA of 15.43, indicating a bullish trend. The MACD of 1.60 indicates Negative momentum. The RSI at 68.23 is Neutral, neither overbought nor oversold. The STOCH value of 76.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NKTR.

Nektar Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NKTR	56 Neutral	$547.35M	―	-440.80%	―	-19.56%	35.55%
FDMT	52 Neutral	$304.97M	―	-38.87%	―	―	―
Sector *	51 Neutral	$7.83B	-0.18	-40.10%	2.29%	21.46%	-2.03%
NKTX	39 Underperform	$156.96M	―	-26.94%	―	―	26.33%
RAPT	39 Underperform	$186.63M	―	-77.83%	―	―	43.16%
ALDX	37 Underperform	$352.79M	―	-65.91%	―	―	-32.74%
KOD	35 Underperform	$511.31M	―	-140.33%	―	―	-0.69%

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.