Nektar Therapeutics ( NKTR Quick Quote NKTR - Free Report) were up 3.1% on Friday after the company announced better-than-expected earnings for the third quarter of 2020.
Nektar reported a loss of 61 cents per share for the third quarter of 2020, narrower than the Zacks Consensus Estimate of a loss of 80 cents but wider than the year-ago loss of 56 cents.
Quarterly revenues were up 2.7% year over year to $30 million during the quarter. Revenues also beat the Zacks Consensus Estimate of $22 million.
Nektar’s shares have lost 19.3% so far this year compared with the
industry’s decline of 4.9%. 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 third quarter, product sales increased 2.4% from the year-ago period to $5.7 million. Non-cash royalty revenues were up 1.5% to $10.4 million.
Nektar’s royalty revenues increased 19.6% year over year to $12.3 million in the quarter.
License, collaboration and other revenues were $1.6 million in the quarter compared with $3.1 million in the year-ago quarter.
Research and development expenses increased 1.5% to $100.5 million due to higher clinical development costs, partially offset by lower manufacturing costs for clinical study materials.
General and administrative expenses rose 12.5% to $27 million in the reported quarter.
2020 Guidance Maintained
Nektar maintained its guidance for 2020. The company expects total revenues for 2020 to be in the range of $140-145 million.
On the earnings call, Nektar stated that enrollment in clinical studies led by the company or its partners is back on track following a disruption in the second quarter due to the COVID-19 pandemic. The company’s partner
Bristol-Myers ( BMY Quick Quote BMY - Free Report) is progressing well with enrollment in five registrational studies of bempegaldesleukin in combination with Bristol-Myers’ Opdivo (nivolumab). In September, Bristol-Myers initiated a new phase I/II study to evaluate bempegaldesleukin+Opdivo in combination with a tyrosine-kinase inhibitor in renal cell carcinoma.
Meanwhile, Nektar stated that the company is ahead of its enrollment targets in the phase II PROPEL study evaluating bempegaldesleukin in combination with
Merck’s ( MRK Quick Quote MRK - Free Report) Keytruda (pembrolizumab). Initial data from the study, evaluating the combination regimen in metastatic non-small cell lung cancer patients, is expected in the first part of 2021.
In October, Nektar initiated a phase Ib study to evaluate bempegaldesleukin in adult patients with mild COVID-19 infection. The company received investigational new drug or IND clearance for initiating a phase I/II study to evaluate NKTR-255 in patients with solid tumors in the same month.
We note that Nektar has another key candidate, NKTR-358, in its pipeline. The development of the candidate is led by its partner
Eli Lilly ( LLY Quick Quote LLY - Free Report) . A phase II study is evaluating the candidate in patients with systemic lupus erythematosus and another mid-stage study is being planned for ulcerative colitis. Two early-stage studies are evaluating the candidate in patients with atopic dermatitis or psoriasis. Zacks Rank
Nektar currently has a Zacks Rank #3 (Hold). You can see
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