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Can Nektar's Pipeline Progress Create Long-Term Value Amid Rivalry?
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Key Takeaways
NKTR launched two Phase III studies of rezpeg for atopic dermatitis in July 2026, with data due in mid-2028.
NKTR plans phase III alopecia areata study in early 2027 and expects type I diabetes data in 2027.
Rezpeg is being developed as a self-administered injection for various autoimmune and inflammatory diseases.
Clinical-stage company Nektar Therapeutics (NKTR - Free Report) is engaged in the development of novel immunology therapies. The company is making steady progress with its lead pipeline candidate, rezpegaldesleukin (rezpeg), which is advancing into phase III development for atopic dermatitis.
Rezpeg is being developed as a self-administered injection for several autoimmune and inflammatory diseases. Rezpeg selectively activates regulatory T-cells to calm the immune system and reduce inflammation.
In July 2026, Nektar initiated two late-stage studies – ZENITH AD-1 and ZENITH AD-2 – which are part of the phase III ZENITH AD program, investigating rezpeg in patients aged 12 years or above with moderate-to-severe atopic dermatitis.
A separate ZENITH AD-3 study is scheduled to begin shortly.
Initial top-line data from the ZENITH AD program are expected in mid-2028. If successful, the company expects to file a biologics license application for rezpeg to treat moderate-to-severe atopic dermatitis in 2029.
Besides atopic dermatitis, rezpeg is being developed as a self-administered injection for other autoimmune and inflammatory diseases, including alopecia areata and type I diabetes.
The company plans to initiate a single registrational phase III study on rezpeg for treating alopecia areata in early 2027. Meanwhile, initial data from the phase II study evaluating rezpeg in type I diabetes is also expected to be announced in 2027.
Successful development and potential approval of rezpeg across multiple indications could enable Nektar to launch its first commercial product, generate revenues and support long-term growth. However, the candidate remains investigational, and its commercial prospects will depend on clinical outcomes and regulatory approvals.
Nektar regained full rights to rezpeg from pharma giant Eli Lilly (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 Eli Lilly.
NKTR’s Potential Competition
Competition in the target market remains a major concern for Nektar as several companies are advancing new treatments for autoimmune diseases at different clinical stages of development.
Though still in the early days, rezpeg is likely to face competition from established players in the target market. Sanofi (SNY - Free Report) and partner Regeneron’s (REGN - Free Report) blockbuster drug Dupixent is approved for several types of inflammatory diseases, including moderate-to-severe atopic dermatitis.
While Sanofi records global net product sales of Dupixent, Regeneron records its share of profit in connection with the global sales of the drug.
NKTR's Price Performance, Valuation and Estimates
Year to date, shares of Nektar have declined 12.7% while the industry has fallen 7.6%.
Image Source: Zacks Investment Research
From a valuation standpoint, Nektar is trading at a discount to the industry. Going by the price/book ratio, the company’s shares currently trade at 1.40, lower than 1.59 for the industry. The stock is also trading below its five-year mean of 2.42.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Nektar’s 2026 loss per share has narrowed from $8.69 to $8.08 over the past 60 days. Meanwhile, loss per share estimates for 2027 have widened from $10.88 to $11.07 during the same time frame.
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Can Nektar's Pipeline Progress Create Long-Term Value Amid Rivalry?
Key Takeaways
Clinical-stage company Nektar Therapeutics (NKTR - Free Report) is engaged in the development of novel immunology therapies. The company is making steady progress with its lead pipeline candidate, rezpegaldesleukin (rezpeg), which is advancing into phase III development for atopic dermatitis.
Rezpeg is being developed as a self-administered injection for several autoimmune and inflammatory diseases. Rezpeg selectively activates regulatory T-cells to calm the immune system and reduce inflammation.
In July 2026, Nektar initiated two late-stage studies – ZENITH AD-1 and ZENITH AD-2 – which are part of the phase III ZENITH AD program, investigating rezpeg in patients aged 12 years or above with moderate-to-severe atopic dermatitis.
A separate ZENITH AD-3 study is scheduled to begin shortly.
Initial top-line data from the ZENITH AD program are expected in mid-2028. If successful, the company expects to file a biologics license application for rezpeg to treat moderate-to-severe atopic dermatitis in 2029.
Besides atopic dermatitis, rezpeg is being developed as a self-administered injection for other autoimmune and inflammatory diseases, including alopecia areata and type I diabetes.
The company plans to initiate a single registrational phase III study on rezpeg for treating alopecia areata in early 2027. Meanwhile, initial data from the phase II study evaluating rezpeg in type I diabetes is also expected to be announced in 2027.
Successful development and potential approval of rezpeg across multiple indications could enable Nektar to launch its first commercial product, generate revenues and support long-term growth. However, the candidate remains investigational, and its commercial prospects will depend on clinical outcomes and regulatory approvals.
Nektar regained full rights to rezpeg from pharma giant Eli Lilly (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 Eli Lilly.
NKTR’s Potential Competition
Competition in the target market remains a major concern for Nektar as several companies are advancing new treatments for autoimmune diseases at different clinical stages of development.
Though still in the early days, rezpeg is likely to face competition from established players in the target market. Sanofi (SNY - Free Report) and partner Regeneron’s (REGN - Free Report) blockbuster drug Dupixent is approved for several types of inflammatory diseases, including moderate-to-severe atopic dermatitis.
While Sanofi records global net product sales of Dupixent, Regeneron records its share of profit in connection with the global sales of the drug.
NKTR's Price Performance, Valuation and Estimates
Year to date, shares of Nektar have declined 12.7% while the industry has fallen 7.6%.
Image Source: Zacks Investment Research
From a valuation standpoint, Nektar is trading at a discount to the industry. Going by the price/book ratio, the company’s shares currently trade at 1.40, lower than 1.59 for the industry. The stock is also trading below its five-year mean of 2.42.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Nektar’s 2026 loss per share has narrowed from $8.69 to $8.08 over the past 60 days. Meanwhile, loss per share estimates for 2027 have widened from $10.88 to $11.07 during the same time frame.
Image Source: Zacks Investment Research
NKTR's Zacks Rank
Nektar currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.