NKTR) today reported financial results for the first quarter ended March 31, 2024.
Cash and investments in marketable securities at March 31, 2024 were $326.0 million as compared to $329.4 million at December 31, 2023. Nektar's cash and marketable securities are expected to support strategic development activities and operations into the third quarter of 2026.
Summary of Financial Results
Revenue in the first quarter of 2024 was $21.6 million as compared to the same $21.6 million in the first quarter of 2023.
Total operating costs and expenses in the first quarter of 2024 were $57.1 million as compared to $156.3 million in the first quarter of 2023. Operating costs and expenses for the first quarter of 2023 included a one-time $76.5 million non-cash goodwill impairment charge. Operating costs and expenses for the first quarter of 2024 further decreased as compared to 2023 due to decreases in restructuring, impairment and costs of terminated program, as well as decreases in R&D and G&A expense.
R&D expense in the first quarter of 2024 was $27.4 million as compared to $30.5 million for the first quarter of 2023. R&D expense for the first quarter of 2024 decreased primarily due to a decrease in employee costs and related facilities costs, partially offset by an increase in expense for the development of rezpegaldesleukin and NKTR-0165, our TNFR2 agonist antibody.
G&A expense was $20.1 million in the first quarter of 2024 as compared to $21.1 million in the first quarter of 2023.
Restructuring, impairment and other costs of the terminated program were $1.0 million in the first quarter of 2024 as compared to $21.2 million in the first quarter of 2023. Restructuring, impairment and other costs of terminated program decreased primarily due to $13.2 million in non-cash lease and equipment impairment charges and $5.5 million in severance expense recognized in the first quarter of 2023.
Net loss for the first quarter of 2024 was $36.8 million or $0.19 basic and diluted loss per share as compared to a net loss of $137.0 million or $0.73 basic and diluted loss per share in the first quarter of 2023.
First Quarter 2024 and Recent Business Highlights
- In March 2024, Nektar initiated a Phase 2b study of rezpegaldesleukin in patients with severe to very severe alopecia areata. The Company expects topline data from this study in the first half of 2025.
- Enrollment is ongoing in the Phase 2b study of rezpegaldesleukin in patients with moderate-to-severe atopic dermatitis. The Company expects topline data from the study in the first half of 2025.
- In March 2024, we entered into a securities purchase agreement with TCG Crossover Fund, an institutional accredited investor, to sell securities in a private placement financing for gross proceeds to the Company of approximately $30 million, before deducting expenses.
Conference Call to Discuss First Quarter 2024 Financial Results
Nektar management will host a conference call to review the results beginning at 5:00 p.m. Eastern Time / 2:00 p.m. Pacific Time, May 9, 2024.
http://ir.nektar.com/. The web broadcast of the conference call will be available for replay through June 9, 2024.
To access the conference call, follow these instructions:
Dial: (800) 715-9871 (U.S & Canada)
Conference ID: 4855448
About Nektar Therapeutics
www.nektar.com and follow us on LinkedIn.
Cautionary Note Regarding Forward-Looking Statements
Contact:
For Investors:
Vivian Wu of Nektar Therapeutics
628-895-0661
For Media:
[email protected]
NEKTAR THERAPEUTICS | ||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||
(In thousands) | ||||||||||
(Unaudited) | ||||||||||
ASSETS | March 31, 2024 | December 31, 2023 (1) | ||||||||
Current assets: | ||||||||||
Cash and cash equivalents | $ 48,642 | $ 35,277 | ||||||||
Short-term investments | 240,596 | 268,339 | ||||||||
Accounts receivable | 3,617 | 1,205 | ||||||||
Inventory, net | 16,238 | 16,101 | ||||||||
Other current assets | 10,743 | 9,779 | ||||||||
Total current assets | 319,836 | 330,701 | ||||||||
Long-term investments | 36,778 | 25,825 | ||||||||
Property, plant and equipment, net | 17,475 | 18,856 | ||||||||
Operating lease right-of-use assets | 17,267 | 18,007 | ||||||||
Other assets | 4,656 | 4,644 | ||||||||
Total assets | $ 396,012 | $ 398,033 | ||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||
Current liabilities: | ||||||||||
Accounts payable | 8,757 | 9,848 | ||||||||
Accrued expenses | 24,281 | 22,162 | ||||||||
Operating lease liabilities, current portion | 19,368 | 19,259 | ||||||||
Total current liabilities | 52,406 | 51,269 | ||||||||
Operating lease liabilities, less current portion | 94,710 | 98,517 | ||||||||
Liabilities related to the sales of future royalties, net | 117,857 | 112,625 | ||||||||
Other long-term liabilities | 4,334 | 4,635 | ||||||||
Total liabilities | 269,307 | 267,046 | ||||||||
Commitments and contingencies | ||||||||||
Stockholders' equity: | ||||||||||
Preferred stock | - | - | ||||||||
Common stock | 19 | 19 | ||||||||
Capital in excess of par value | 3,644,140 | 3,608,137 | ||||||||
Treasury stock | (3,000) | - | ||||||||
Accumulated other comprehensive income (loss) | (403) | 80 | ||||||||
Accumulated deficit | (3,514,051) | (3,477,249) | ||||||||
Total stockholders' equity | 126,705 | 130,987 | ||||||||
Total liabilities and stockholders' equity | $ 396,012 | $ 398,033 | ||||||||
(1) The consolidated balance sheet at December 31, 2023 has been derived from the audited financial statements at that date but does not include all |
NEKTAR THERAPEUTICS | ||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||
(In thousands, except per share information) | ||||||||||
(Unaudited) | ||||||||||
Three months ended March 31, | ||||||||||
2024 | 2023 | |||||||||
Revenue: | ||||||||||
Product sales | $ 6,034 | $ 4,718 | ||||||||
Non-cash royalty revenue related to the sales of future royalties | 15,508 | 16,861 | ||||||||
License, collaboration and other revenue | 97 | 15 | ||||||||
Total revenue | 21,639 | 21,594 | ||||||||
Operating costs and expenses: | ||||||||||
Cost of goods sold | 8,534 | 7,060 | ||||||||
Research and development | 27,408 | 30,469 | ||||||||
General and administrative | 20,149 | 21,081 | ||||||||
Restructuring, impairment and costs of terminated program | 975 | 21,193 | ||||||||
Impairment of goodwill | - | 76,501 | ||||||||
Total operating costs and expenses | 57,066 | 156,304 | ||||||||
Loss from operations | (35,427) | (134,710) | ||||||||
Non-operating income (expense): | ||||||||||
Non-cash interest expense on liabilities related to the sales of future royalties | (5,531) | (6,405) | ||||||||
Interest income | 4,220 | 4,335 | ||||||||
Other income (expense), net | (99) | (301) | ||||||||
Total non-operating income (expense), net | (1,410) | (2,371) | ||||||||
Loss before provision for income taxes | (36,837) | (137,081) | ||||||||
Provision (benefit) for income taxes | (35) | (63) | ||||||||
Net loss | $ (36,802) | $ (137,018) | ||||||||
Basic and diluted net loss per share | $ (0.19) | $ (0.73) | ||||||||
Weighted average shares outstanding used in computing basic and diluted net loss per | 194,746 | 188,875 |
SOURCE Nektar Therapeutics
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