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Nektar Therapeutics (NKTR) Loss Wider than Expected in Q4
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Nektar Therapeutics (NKTR - Free Report) reported loss of 28 cents per share in the fourth quarter of 2016, wider than the Zacks Consensus Estimate of loss of 26 cents. The reported loss was, however, narrower than the year-ago loss of 40 cents per share. The company’s shares gained 13.7% following the release of the fourth-quarter results.
In fact, Nektar saw its shares significantly outperform the Zacks classified Medical-Drugs industry in the past one year. The company’s shares gained 34.7%, while the industry registered an increase of 7.3%.
Quarterly revenues decreased 4.8% to $37.5 million from the year-ago quarter. Revenues missed the Zacks Consensus Estimate of $43 million.
Quarter in Detail
The top line comprised product sales, royalty revenues, non-cash royalty revenues, license, collaboration and other revenues.
Product sales were dipped 2.1% to almost $13.7 million in the fourth quarter of 2016, while non-cash royalty revenues jumped 6.8% to $7.8 million.
The company reported royalty revenues of $6.4 million in the fourth quarter compared with $1.9 million the year-ago quarter figure. This was mainly due to royalty revenues from Movantik sales. License, collaboration and other revenues came in at $9.5 million compared with $16.2 million a year ago.
Research and development (R&D) expenses were up 6.6% to $50.2 million, primarily due to investments in pipeline, including candidates like NKTR-181 and NKTR-214. Also, preparations for advancing NKTR-358 into the clinic in the first quarter of 2017 led to the increase in expenses.
General and administrative (G&A) expenses were down 3% to $12.8 million.
Pipeline Update
Nektar expects a decision from the European Medicines Agency’s Committee for Medicinal Products for Human Use for Onzeald for the treatment of advanced breast cancer with a history of brain metastases by the end of the first half of 2017. The company is looking to get the candidate approved for the treatment of patients with advanced breast cancer and brain metastases.
Upon the first sale of Onzeald in Europe, Nektar will receive a milestone payment of $10 million and will be eligible to receive 20% royalties on all European sales of Onzeald from Daiichi Sankyo.
Moreover, a phase I/II study evaluating NKTR-214 as a potential combination treatment regimen with Opdivo in collaboration with Bristol-Myers Squibb (BMY - Free Report) is underway. The company plans to report initial data from the dose-escalation part of the study by the middle of this year.
In Feb 2017, Nektar submitted an investigational new drug (IND) application to the FDA for NKTR-358, a new biologic designed to treat autoimmune disease. Clinical trials are planned to evaluate NKTR-358 in patients with systemic lupus erythematous (SLE) and other indications.
2016 Results
Full-year sales decreased to $165.4 million from year-ago figure of $230.8 million.
The full-year loss of $1.10 per share was wider than year-ago loss of 61 cents.
2017 Outlook
The company expects total revenue in the range of $145–$155 million in 2017, which is lower than Zacks Estimates of $208.3 million. The company expects R&D expenditure in the range of $230–$240 million and G&A expenses in the band of $45–$47 million during the same period.
Nektar Therapeutics Price, Consensus and EPS Surprise
Nektar currently carries a Zacks Rank #3 (Hold). A couple of better-ranked stocks in the health care sector include Celgene Corporation and Sunesis Pharmaceuticals, Inc. . Each of these stock carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Celgene’s earnings per share estimates increased from $6.52 to $6.60 for 2017 and from $8.15 to $8.16 for 2018 over the last 60 days. The company posted positive earnings surprises in three of the four trailing quarters with an average beat of 5.08%.
Sunesis’ loss per share estimates narrowed from $2.57 to $2.44 for 2016 and from $2.16 to $1.97 for 2017 over the last 60 days. The company posted positive earnings surprises in three of the four trailing quarters with an average beat of 0.54%.
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Nektar Therapeutics (NKTR) Loss Wider than Expected in Q4
Nektar Therapeutics (NKTR - Free Report) reported loss of 28 cents per share in the fourth quarter of 2016, wider than the Zacks Consensus Estimate of loss of 26 cents. The reported loss was, however, narrower than the year-ago loss of 40 cents per share. The company’s shares gained 13.7% following the release of the fourth-quarter results.
In fact, Nektar saw its shares significantly outperform the Zacks classified Medical-Drugs industry in the past one year. The company’s shares gained 34.7%, while the industry registered an increase of 7.3%.
Quarterly revenues decreased 4.8% to $37.5 million from the year-ago quarter. Revenues missed the Zacks Consensus Estimate of $43 million.
Quarter in Detail
The top line comprised product sales, royalty revenues, non-cash royalty revenues, license, collaboration and other revenues.
Product sales were dipped 2.1% to almost $13.7 million in the fourth quarter of 2016, while non-cash royalty revenues jumped 6.8% to $7.8 million.
The company reported royalty revenues of $6.4 million in the fourth quarter compared with $1.9 million the year-ago quarter figure. This was mainly due to royalty revenues from Movantik sales. License, collaboration and other revenues came in at $9.5 million compared with $16.2 million a year ago.
Research and development (R&D) expenses were up 6.6% to $50.2 million, primarily due to investments in pipeline, including candidates like NKTR-181 and NKTR-214. Also, preparations for advancing NKTR-358 into the clinic in the first quarter of 2017 led to the increase in expenses.
General and administrative (G&A) expenses were down 3% to $12.8 million.
Pipeline Update
Nektar expects a decision from the European Medicines Agency’s Committee for Medicinal Products for Human Use for Onzeald for the treatment of advanced breast cancer with a history of brain metastases by the end of the first half of 2017. The company is looking to get the candidate approved for the treatment of patients with advanced breast cancer and brain metastases.
Upon the first sale of Onzeald in Europe, Nektar will receive a milestone payment of $10 million and will be eligible to receive 20% royalties on all European sales of Onzeald from Daiichi Sankyo.
Moreover, a phase I/II study evaluating NKTR-214 as a potential combination treatment regimen with Opdivo in collaboration with Bristol-Myers Squibb (BMY - Free Report) is underway. The company plans to report initial data from the dose-escalation part of the study by the middle of this year.
In Feb 2017, Nektar submitted an investigational new drug (IND) application to the FDA for NKTR-358, a new biologic designed to treat autoimmune disease. Clinical trials are planned to evaluate NKTR-358 in patients with systemic lupus erythematous (SLE) and other indications.
2016 Results
Full-year sales decreased to $165.4 million from year-ago figure of $230.8 million.
The full-year loss of $1.10 per share was wider than year-ago loss of 61 cents.
2017 Outlook
The company expects total revenue in the range of $145–$155 million in 2017, which is lower than Zacks Estimates of $208.3 million. The company expects R&D expenditure in the range of $230–$240 million and G&A expenses in the band of $45–$47 million during the same period.
Nektar Therapeutics Price, Consensus and EPS Surprise
Nektar Therapeutics Price, Consensus and EPS Surprise | Nektar Therapeutics Quote
Zacks Rank & Key Picks
Nektar currently carries a Zacks Rank #3 (Hold). A couple of better-ranked stocks in the health care sector include Celgene Corporation and Sunesis Pharmaceuticals, Inc. . Each of these stock carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Celgene’s earnings per share estimates increased from $6.52 to $6.60 for 2017 and from $8.15 to $8.16 for 2018 over the last 60 days. The company posted positive earnings surprises in three of the four trailing quarters with an average beat of 5.08%.
Sunesis’ loss per share estimates narrowed from $2.57 to $2.44 for 2016 and from $2.16 to $1.97 for 2017 over the last 60 days. The company posted positive earnings surprises in three of the four trailing quarters with an average beat of 0.54%.
Zacks' Top Investment Ideas for Long-Term Profit
How would you like to see our best recommendations to help you find today’s most promising long-term stocks? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>