Nektar Therapeutics ( NKTR Quick Quote NKTR - Free Report) reported a loss of 45 cents per share for the second quarter of 2020, narrower than the Zacks Consensus Estimate of a loss of 69 cents and the year-ago loss of 63 cents.
Quarterly revenues were up 109.4% year over year to $48.8 million owing to the recognition of a milestone payment from its collaboration partner, Bristol-Myers (
BMY Quick Quote BMY - Free Report) , during the quarter. Revenues also beat the Zacks Consensus Estimate of $22.84 million.
Nektar’s shares have gained 5.3% so far this year against the
industry’s decline of 4.2%. Quarter in Detail
Nektar’s top line comprises product sales, royalty revenues, non-cash royalty revenues along with license, collaboration and other revenues.
In the second quarter, product sales increased 26.2% from the year-ago period to $5.5 million. Non-cash royalty revenues were down 15.5% to $7.7 million.
Nektar’s royalty revenues increased 28.1% year over year to $9.4 million in the quarter.
License, collaboration and other revenues were $26.3 million in the quarter compared with $2.5 million in the year-ago quarter. The increase was due to the recognition of a $25-million milestone payment from Bristol-Myers (
BMY Quick Quote BMY - Free Report) , triggered by the initiation of the registrational study of Nektar’s bempegaldesleukin plus Bristol-Myers’ Opdivo in adjuvant melanoma.
Research and development expenses decreased 9.6% to $96.4 million. Notably, the company had recorded pre-commercial manufacturing costs for NKTR-181 in the year-ago quarter, which was not present in the reported quarter and led to the decline in expenses. The company discontinued the development of NKTR-181 in January.
General and administrative expenses rose 7.8% to $24.3 million in the reported quarter.
On the earnings call, Nektar cautioned that uncertainties concerning COVID-19 may impact clinical study timelines. The company will continue to assess timelines throughout the year to get more visibility into the timing and extent of the COVID-19 impact.
The company is primarily focusing on development of five clinical studies in immuno-oncology including first-line bladder cancer and renal cell carcinoma studies of bempegaldesleukin plus Opdivo, the PROPEL study of bempegaldesleukin plus Merck’s (
MRK Quick Quote MRK - Free Report) Keytruda, and NKTR-262 REVEAL study with bempegaldesleukin and the NKTR-255 studies.
Please note that bempegaldesleukin is the company’s leading immuno-oncology candidate. The company is developing bempegaldesleukin in combination with Bristol-Myers’ PD-1 inhibitor, Opdivo, in several registrational studies as a potential treatment for melanoma, urothelial cancer and renal cell carcinoma. In July, Nektar started enrollment in the registrational study of the combination therapy evaluating it in first-line adjuvant melanoma.
Nektar also has collaboration agreements with Takeda and Pfizer (
PFE Quick Quote PFE - Free Report) to develop bempegaldesleukin in combination with their respective drugs, targeting several cancer indications. Zacks Rank
Nektar currently has a Zacks Rank #3 (Hold).
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