Nektar Therapeutics (NKTR - Free Report) reported a loss of 56 cents per share for the third quarter of 2018, narrower than the Zacks Consensus Estimate of a loss of 64 cents. The company had recorded a loss of 37 cents per share in the year-ago period.
Nektar’s stock was up 2.1% in pre-market trading on Nov 8. Shares of Nektar have lost 36.5% so far this year compared with the industry’s decrease of 2.7%.
Quarterly revenues were $27.8 million compared with the year-ago figure of $152.9 million. The significant decrease in revenues was attributable to $127.6 million in upfront fees received from Eli Lilly (LLY - Free Report) in the third quarter of 2017 related to development and commercialization collaboration deal of NKTR-358. The top line beat the Zacks Consensus Estimate of $25 million.
Quarter in Detail
The top line comprises product sales, royalty revenues, non-cash royalty revenues besides license, collaboration and other revenues.
In the third quarter, product sales declined 4.3% to $4.3 million from the year-ago period. However, non-cash royalty revenues increased 3.8% to $8.4 million.
The company reported royalty revenues of $10.3 million in the quarter, registering an improvement of 10.3% from $9.3 million a year ago.
License, collaboration and other revenues came in at $4.9 million compared with $131.1 million in the prior year. In the year-ago period, the company recorded upfront fees from Eli Lilly related to a license agreement for NKTR-358.
Research and development (R&D) expenses escalated 56.6% to $102.9 million, primarily due to investments in pipeline, including key candidates NKTR-358, NKTR-214 and NKTR-262. It also included costs related to filing of a new drug application (“NDA”) for NKTR-181.
Nektar is looking to get NKTR-181, an opioid analgesic, for the treatment of chronic low back pain, approved. A decision from the FDA is expected by May 29, 2019.
General and administrative (G&A) expenses were up 55.3% to $18.7 million in the reported quarter primarily due to higher stock-based compensation expenses.
Pipeline Update
Nektar is developing several candidates across important therapeutic areas including Onzeald in breast cancer and NKTR-181 in chronic pain. The company is also developing several immuno-oncology candidates, with NKTR-214 being a primary candidate among them.
In November, the company entered into clinical collaboration with Pfizer (PFE - Free Report) to develop doublet or triplet combination therapies of NKTR-214 in several cancer indications including metastatic castration-resistant prostate cancer and squamous cell carcinoma of the head and neck. Per the terms of the agreement, Pfizer will initiate a phase Ib/II study in 2019 to evaluate combination therapies of its cancer drugs/candidates Bavencio (avelumab) and talazoparib or Xtandi (enzalutamide) with NKTR-214.
In September, Nektar and partner, Bristol-Myers (BMY - Free Report) , initiated a phase III study to evaluate NKTR-214 plus Opdivo (nivolumab) for treating previously untreated unresectable or metastatic melanoma.
Onzeald is currently being evaluated in a phase III (ATTAIN) study for the treatment of adults with advanced breast cancer, having brain metastases.
Zacks Rank
Nektar currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Nektar Therapeutics (NKTR - Free Report) reported a loss of 56 cents per share for the third quarter of 2018, narrower than the Zacks Consensus Estimate of a loss of 64 cents. The company had recorded a loss of 37 cents per share in the year-ago period.
Nektar’s stock was up 2.1% in pre-market trading on Nov 8. Shares of Nektar have lost 36.5% so far this year compared with the industry’s decrease of 2.7%.
Quarterly revenues were $27.8 million compared with the year-ago figure of $152.9 million. The significant decrease in revenues was attributable to $127.6 million in upfront fees received from Eli Lilly (LLY - Free Report) in the third quarter of 2017 related to development and commercialization collaboration deal of NKTR-358. The top line beat the Zacks Consensus Estimate of $25 million.
Quarter in Detail
The top line comprises product sales, royalty revenues, non-cash royalty revenues besides license, collaboration and other revenues.
In the third quarter, product sales declined 4.3% to $4.3 million from the year-ago period. However, non-cash royalty revenues increased 3.8% to $8.4 million.
The company reported royalty revenues of $10.3 million in the quarter, registering an improvement of 10.3% from $9.3 million a year ago.
License, collaboration and other revenues came in at $4.9 million compared with $131.1 million in the prior year. In the year-ago period, the company recorded upfront fees from Eli Lilly related to a license agreement for NKTR-358.
Research and development (R&D) expenses escalated 56.6% to $102.9 million, primarily due to investments in pipeline, including key candidates NKTR-358, NKTR-214 and NKTR-262. It also included costs related to filing of a new drug application (“NDA”) for NKTR-181.
Nektar is looking to get NKTR-181, an opioid analgesic, for the treatment of chronic low back pain, approved. A decision from the FDA is expected by May 29, 2019.
General and administrative (G&A) expenses were up 55.3% to $18.7 million in the reported quarter primarily due to higher stock-based compensation expenses.
Pipeline Update
Nektar is developing several candidates across important therapeutic areas including Onzeald in breast cancer and NKTR-181 in chronic pain. The company is also developing several immuno-oncology candidates, with NKTR-214 being a primary candidate among them.
In November, the company entered into clinical collaboration with Pfizer (PFE - Free Report) to develop doublet or triplet combination therapies of NKTR-214 in several cancer indications including metastatic castration-resistant prostate cancer and squamous cell carcinoma of the head and neck. Per the terms of the agreement, Pfizer will initiate a phase Ib/II study in 2019 to evaluate combination therapies of its cancer drugs/candidates Bavencio (avelumab) and talazoparib or Xtandi (enzalutamide) with NKTR-214.
In September, Nektar and partner, Bristol-Myers (BMY - Free Report) , initiated a phase III study to evaluate NKTR-214 plus Opdivo (nivolumab) for treating previously untreated unresectable or metastatic melanoma.
Onzeald is currently being evaluated in a phase III (ATTAIN) study for the treatment of adults with advanced breast cancer, having brain metastases.
Zacks Rank
Nektar currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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