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Nektar (NKTR) Q3 Earnings Top, Pipeline Remains On Track
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Nektar Therapeutics (NKTR - Free Report) reported a loss of 70 cents per share for the third quarter of 2021, narrower than the Zacks Consensus Estimate of a loss of 80 cents but wider than the year-ago loss of 61 cents.
Quarterly revenues were down 17% year over year to $24.9 million during the quarter, missing the Zacks Consensus Estimate of $29.87 million. The year-over-year decline in sales was largely due to the absence of Royalty revenues.
Despite the mixed quarterly results, Nektar’s shares were up 1.6% in after-hours trading on Nov 4. Shares of the company have declined 2% so far this year compared with the industry’s decrease of 13.5%.
Image Source: Zacks Investment Research
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 decreased 8.7% from the year-ago period to $5.2 million. Non-cash royalty revenues were $19.4 million in the quarter, up 86.3% from the year-ago quarter.
License, collaboration and other revenues were $0.3 million in the quarter compared with $1.6 million in the year-ago quarter.
The company did not record any Royalty revenues during the quarter as the company sold its rights to receive sales-based royalties for five partnered drugs last year.
Research and development (R&D) expenses increased 3.2% to $103.7 million. General and administrative (G&A) expenses were up 9.2% year over year to $29.5 million in the reported quarter. The increase in G&A expenses was led by costs to support pre-commercialization activities related to bempegaldesleukin.
Pipeline Update
Nektar remains on track with the development of its lead pipeline candidate, bempegaldesleukin, as a potential treatment for different oncology indications.
Top-line data from three registrational studies evaluating bempegaldesleukin plus Opdivo in patients with melanoma, renal cell carcinoma and bladder cancer is expected in the first half of 2022. Two other registrational studies are evaluating the combination regimen as a potential treatment for urothelial cancer and adjuvant melanoma.
Initial data from the phase I/II study — PROPEL — evaluating bempegaldesleukin in combination with Merck’s (MRK - Free Report) Keytruda for treating metastatic non-small cell lung cancer is expected to presented next month at the ESMO Immuno-Oncology meeting. A phase II/III study is evaluating the combination regimen as a first-line treatment for metastatic or unresectable recurrent squamous cell carcinoma of the head and neck in patients whose tumors express PD-L1.
Apart from bempegaldesleukin, Nektar is developing NKTR-255 for treating several oncology indications including non-Hodgkin lymphoma, multiple myeloma, head and neck squamous cell carcinoma and colorectal cancer in early-stage studies. The company plans to present updated data from the clinical studies evaluating NKTR-255 in solid tumors at the Society for Immunotherapy of Cancer annual meeting scheduled next week. Updated data from the hematologic malignancy studies on NKTR-255 are expected to be presented at the 2021 American Society of Hematology annual meeting next month. In September, Nektar also signed an agreement with Pfizer (PFE - Free Report) and Germany-based Merck KGaA to evaluate NKTR-255 in combination with Pfizer/Merck KGaA’s PD-L1 inhibitor, Bavencio (avelumab) as a potential treatment of urothelial carcinoma. A combination of NKTR-255 and Bavencio will be evaluated as part of Pfizer/Merck KGaA’s phase II umbrella study — JAVELIN Bladder Medley.
Nektar’s partner, Eli Lilly (LLY - Free Report) is evaluating NKTR-358 in two mid-stage studies involving patients with lupus or ulcerative colitis. Two more mid-stage studies will be initiated to evaluate the candidate as a potential treatment for two other immune-mediated diseases.
Nektar Therapeutics Price, Consensus and EPS Surprise
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Nektar (NKTR) Q3 Earnings Top, Pipeline Remains On Track
Nektar Therapeutics (NKTR - Free Report) reported a loss of 70 cents per share for the third quarter of 2021, narrower than the Zacks Consensus Estimate of a loss of 80 cents but wider than the year-ago loss of 61 cents.
Quarterly revenues were down 17% year over year to $24.9 million during the quarter, missing the Zacks Consensus Estimate of $29.87 million. The year-over-year decline in sales was largely due to the absence of Royalty revenues.
Despite the mixed quarterly results, Nektar’s shares were up 1.6% in after-hours trading on Nov 4. Shares of the company have declined 2% so far this year compared with the industry’s decrease of 13.5%.
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 decreased 8.7% from the year-ago period to $5.2 million. Non-cash royalty revenues were $19.4 million in the quarter, up 86.3% from the year-ago quarter.
License, collaboration and other revenues were $0.3 million in the quarter compared with $1.6 million in the year-ago quarter.
The company did not record any Royalty revenues during the quarter as the company sold its rights to receive sales-based royalties for five partnered drugs last year.
Research and development (R&D) expenses increased 3.2% to $103.7 million. General and administrative (G&A) expenses were up 9.2% year over year to $29.5 million in the reported quarter. The increase in G&A expenses was led by costs to support pre-commercialization activities related to bempegaldesleukin.
Pipeline Update
Nektar remains on track with the development of its lead pipeline candidate, bempegaldesleukin, as a potential treatment for different oncology indications.
Top-line data from three registrational studies evaluating bempegaldesleukin plus Opdivo in patients with melanoma, renal cell carcinoma and bladder cancer is expected in the first half of 2022. Two other registrational studies are evaluating the combination regimen as a potential treatment for urothelial cancer and adjuvant melanoma.
Initial data from the phase I/II study — PROPEL — evaluating bempegaldesleukin in combination with Merck’s (MRK - Free Report) Keytruda for treating metastatic non-small cell lung cancer is expected to presented next month at the ESMO Immuno-Oncology meeting. A phase II/III study is evaluating the combination regimen as a first-line treatment for metastatic or unresectable recurrent squamous cell carcinoma of the head and neck in patients whose tumors express PD-L1.
Apart from bempegaldesleukin, Nektar is developing NKTR-255 for treating several oncology indications including non-Hodgkin lymphoma, multiple myeloma, head and neck squamous cell carcinoma and colorectal cancer in early-stage studies. The company plans to present updated data from the clinical studies evaluating NKTR-255 in solid tumors at the Society for Immunotherapy of Cancer annual meeting scheduled next week. Updated data from the hematologic malignancy studies on NKTR-255 are expected to be presented at the 2021 American Society of Hematology annual meeting next month. In September, Nektar also signed an agreement with Pfizer (PFE - Free Report) and Germany-based Merck KGaA to evaluate NKTR-255 in combination with Pfizer/Merck KGaA’s PD-L1 inhibitor, Bavencio (avelumab) as a potential treatment of urothelial carcinoma. A combination of NKTR-255 and Bavencio will be evaluated as part of Pfizer/Merck KGaA’s phase II umbrella study — JAVELIN Bladder Medley.
Nektar’s partner, Eli Lilly (LLY - Free Report) is evaluating NKTR-358 in two mid-stage studies involving patients with lupus or ulcerative colitis. Two more mid-stage studies will be initiated to evaluate the candidate as a potential treatment for two other immune-mediated diseases.
Nektar Therapeutics Price, Consensus and EPS Surprise
Nektar Therapeutics price-consensus-eps-surprise-chart | Nektar Therapeutics Quote
Zacks Rank
Nektar currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.