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Nektar (NKTR) Q4 Loss Wider Than Expected, Revenue Beat
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Nektar Therapeutics (NKTR - Free Report) reported an adjusted loss of 22 cents per share for the fourth quarter of 2023, wider than the Zacks Consensus Estimate of a loss of 20 cents. In the year-ago quarter, the company had incurred a loss of 32 cents per share.
Total revenues increased 8.5% year over year to $23.9 million during the fourth quarter. Revenues beat the Zacks Consensus Estimate of $17 million.
Quarter in Detail
In the fourth quarter, product sales increased around 25.2% from the year-ago quarter’s levels to $5.5 million.
Non-cash royalty revenues were $18.1 million, up 2.5% from the year-ago quarter. Non-cash royalty revenues were better than our model estimate of $15 million.
License, collaboration and other revenues were $0.3 million in the reported quarter compared with $0.01 million reported in the year-ago quarter.
Research and development (R&D) expenses declined 13.8% to $29.9 million due to the winding down of the development of bempegaldesleukin (bempeg). NKTR stopped all clinical studies on bempeg in April 2022.
General and administrative (G&A) expenses declined 21% year over year to $17.3 million due to the discontinuation of the development of bempeg.
Cash and investments in marketable securities as of Dec 31, 2023 were $329.4 million compared with $372.7 million as of Sep 30.
Shares of Nektar have plunged 37.5% in the past year compared with the industry’s decline of 2.6%.
Image Source: Zacks Investment Research
Full-Year Results
In 2023, Nektar generated total revenues of $90.1 million, which decreased 2.1% year over year.
In the same period, the company recorded a loss of $1.45 per share compared with a loss of $1.97 in 2022.
2024 Guidance
Nektar expects revenues in the range of $75-$85 million in 2024, which includes $55-$65 million in non-cash royalties and $20-$25 million in product sales.
R&D costs are expected to be between $120 million and $130 million. G&A costs are anticipated to be between $70 million and $75 million. Nektar expects to end 2024 with $200-$225 million in cash and investments, which is likely to extend the cash runaway through the third quarter of 2026.
Pipeline Updates
Nektar has two key candidates in its pipeline, rezpegaldesleukin (rezpeg) and NKTR-255.
In October 2023, Nektar initiated a phase IIb study of rezpeg in biologic-naïve patients with moderate-to-severe atopic dermatitis, also called eczema. Initial data from this study is expected in the first half of 2025.
NKTR regained full rights to rezpeg from Eli Lily (LLY - Free Report) in April 2023 and took charge of its clinical development. Rezpeg was earlier developed in collaboration with LLY for several autoimmune indications.
Rezpeg is now a wholly owned asset of Nektar and the company owes no royalty payments to LLY.
Nektar is also initiating a phase IIb study on rezpeg for treating patients with alopecia areata in the ongoing month.
NKTR has a partnership with Cellular Biomedicine to develop NKTR-255 as a combination therapy for advanced non-small cell lung cancer patients who are relapsed or refractory to anti-PD-1 therapy.
The study will investigate NKTR-255 in combination with Cellular Biomedicine’s C-TIL051 — a tumor-infiltrating lymphocyte therapy for the given indication. Enrollment in the study is currently ongoing.
NKTR-255 is also being evaluated in two separate mid-stage studies in combination with cell therapies and immunotherapy. Along with partner Merck KGaA, Nektar is evaluating NKTR-255 in combination with Bavencio (avelumab) in the phase II JAVELIN Bladder Medley study.
Nektar Therapeutics Price, Consensus and EPS Surprise
In the past 60 days, estimates for Indivior’s 2024 earnings per share have improved from $1.83 to $1.95. In the past year, shares of INDV have risen 8.8%.
Indivior’s earnings beat estimates in each of the trailing three quarters. INDV delivered an average earnings surprise of 48.06%.
In the past 60 days, the Zacks Consensus Estimate for Vanda Pharmaceuticals’ 2024 bottom line has improved from a loss of 46 cents per share to earnings of 1 cent. In the past year, shares of VNDA have plunged 32.5%.
Vanda Pharmaceuticals’ earnings beat estimates in each of the trailing three quarters. VNDA delivered an average earnings surprise of 92.88%.
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Nektar (NKTR) Q4 Loss Wider Than Expected, Revenue Beat
Nektar Therapeutics (NKTR - Free Report) reported an adjusted loss of 22 cents per share for the fourth quarter of 2023, wider than the Zacks Consensus Estimate of a loss of 20 cents. In the year-ago quarter, the company had incurred a loss of 32 cents per share.
Total revenues increased 8.5% year over year to $23.9 million during the fourth quarter. Revenues beat the Zacks Consensus Estimate of $17 million.
Quarter in Detail
In the fourth quarter, product sales increased around 25.2% from the year-ago quarter’s levels to $5.5 million.
Non-cash royalty revenues were $18.1 million, up 2.5% from the year-ago quarter. Non-cash royalty revenues were better than our model estimate of $15 million.
License, collaboration and other revenues were $0.3 million in the reported quarter compared with $0.01 million reported in the year-ago quarter.
Research and development (R&D) expenses declined 13.8% to $29.9 million due to the winding down of the development of bempegaldesleukin (bempeg). NKTR stopped all clinical studies on bempeg in April 2022.
General and administrative (G&A) expenses declined 21% year over year to $17.3 million due to the discontinuation of the development of bempeg.
Cash and investments in marketable securities as of Dec 31, 2023 were $329.4 million compared with $372.7 million as of Sep 30.
Shares of Nektar have plunged 37.5% in the past year compared with the industry’s decline of 2.6%.
Image Source: Zacks Investment Research
Full-Year Results
In 2023, Nektar generated total revenues of $90.1 million, which decreased 2.1% year over year.
In the same period, the company recorded a loss of $1.45 per share compared with a loss of $1.97 in 2022.
2024 Guidance
Nektar expects revenues in the range of $75-$85 million in 2024, which includes $55-$65 million in non-cash royalties and $20-$25 million in product sales.
R&D costs are expected to be between $120 million and $130 million. G&A costs are anticipated to be between $70 million and $75 million. Nektar expects to end 2024 with $200-$225 million in cash and investments, which is likely to extend the cash runaway through the third quarter of 2026.
Pipeline Updates
Nektar has two key candidates in its pipeline, rezpegaldesleukin (rezpeg) and NKTR-255.
In October 2023, Nektar initiated a phase IIb study of rezpeg in biologic-naïve patients with moderate-to-severe atopic dermatitis, also called eczema. Initial data from this study is expected in the first half of 2025.
NKTR regained full rights to rezpeg from Eli Lily (LLY - Free Report) in April 2023 and took charge of its clinical development. Rezpeg was earlier developed in collaboration with LLY for several autoimmune indications.
Rezpeg is now a wholly owned asset of Nektar and the company owes no royalty payments to LLY.
Nektar is also initiating a phase IIb study on rezpeg for treating patients with alopecia areata in the ongoing month.
NKTR has a partnership with Cellular Biomedicine to develop NKTR-255 as a combination therapy for advanced non-small cell lung cancer patients who are relapsed or refractory to anti-PD-1 therapy.
The study will investigate NKTR-255 in combination with Cellular Biomedicine’s C-TIL051 — a tumor-infiltrating lymphocyte therapy for the given indication. Enrollment in the study is currently ongoing.
NKTR-255 is also being evaluated in two separate mid-stage studies in combination with cell therapies and immunotherapy. Along with partner Merck KGaA, Nektar is evaluating NKTR-255 in combination with Bavencio (avelumab) in the phase II JAVELIN Bladder Medley study.
Nektar Therapeutics Price, Consensus and EPS Surprise
Nektar Therapeutics price-consensus-eps-surprise-chart | Nektar Therapeutics Quote
Zacks Rank & Stocks to Consider
Nektar currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the healthcare sector are Indivior PLC (INDV - Free Report) and Vanda Pharmaceuticals Inc. (VNDA - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 60 days, estimates for Indivior’s 2024 earnings per share have improved from $1.83 to $1.95. In the past year, shares of INDV have risen 8.8%.
Indivior’s earnings beat estimates in each of the trailing three quarters. INDV delivered an average earnings surprise of 48.06%.
In the past 60 days, the Zacks Consensus Estimate for Vanda Pharmaceuticals’ 2024 bottom line has improved from a loss of 46 cents per share to earnings of 1 cent. In the past year, shares of VNDA have plunged 32.5%.
Vanda Pharmaceuticals’ earnings beat estimates in each of the trailing three quarters. VNDA delivered an average earnings surprise of 92.88%.