Nektar Therapeutics Reports First Quarter 2024 Financial Results

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: [phone] (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 of the information and notes required by generally accepted accounting principles in the United States for complete financial statements.

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 share								194,746		188,875

SOURCE Nektar Therapeutics