SAN FRANCISCO, March 12, 2025 /PRNewswire/ -- Nektar Therapeutics (Nasdaq: NKTR) today reported financial results for the fourth quarter ended December 31, 2024.
Cash and investments in marketable securities on December 31, 2024 were $269.1 million as compared to $329.4 million at December 31, 2023. Nektar's cash and marketable securities are expected to support strategic development activities and operations into the fourth quarter of 2026.
"The significant progress we made last year in advancing our immunology pipeline positions us for two value-creating data milestones in 2025," said Howard W. Robin, President and CEO of Nektar. "With enrollment now complete for the atopic dermatitis and alopecia areata Phase 2b trials, we are on track to report topline data for rezpegaldesleukin in the second quarter and in the fourth quarter of this year, respectively. This program is poised to emerge as the first T regulatory cell treatment option to help the millions of patients battling these chronic autoimmune disorders."
"We also made progress on our preclinical immunology programs," continued Robin. "We reported the first data for NKTR-0165, our novel antibody targeting TNFR2, and unveiled a new bispecific antibody, NKTR-0166. We plan to submit the IND for NKTR-0165 in the second half of this year."
Summary of Financial Results
Revenue in the fourth quarter of 2024 was $29.2 million as compared to $23.9 million in the fourth quarter of 2023. Revenue for the year ended December 31, 2024 was $98.4 million as compared to $90.1 million in 2023.
Total operating costs and expenses in the fourth quarter of 2024 were $14.8 million as compared to $57.4 million in the fourth quarter of 2023. Total operating costs and expenses for the full year 2024 were $203.6 million as compared to $353.8 million in 2023. Operating costs and expenses for both the fourth quarter and the full year 2024 decreased as compared to 2023 primarily due to a $40.4 million gain from sale of the Huntsville manufacturing facility in 2024, as well as decreases in restructuring and impairment costs. Operating expenses for the full year 2024 also decreased as compared to 2023 due to a one-time $76.5 million non-cash goodwill impairment recognized in the first quarter of 2023.
R&D expense in the fourth quarter of 2024 was $28.7 million as compared to $29.9 million for the fourth quarter of 2023. R&D expense for the year ended December 31, 2024 was $120.9 million as compared to $114.2 million in 2023. R&D expense increased for full year 2024 primarily due to increases in development expenses for rezpegaldesleukin partially offset by decreases in employee and related facilities costs, as well as development expenses for NKTR-255.
G&A expense was $17.1 million in the fourth quarter of 2024 and $17.3 million in the fourth quarter of 2023. G&A expense for the full year 2024 was $76.8 million as compared to $77.4 million in 2023. G&A expense remained consistent for the full year 2024 as compared to the full year 2023. Decreases in employee costs were offset by a reduction of facilities costs allocated to research and development expense as well as an increase in commercial litigation expense.
Restructuring and impairment costs were $1.4 million in the fourth quarter of 2024 and $15.7 million in the full year 2024, as compared to $2.9 million in the fourth quarter of 2023 and $52.0 million in the full year 2023. The full year 2024 amount includes $8.3 million in non-cash lease impairment charges, and $7.4 million in other restructuring costs. The full year 2023 amount includes $7.9 million in severance expense, $35.3 million in non-cash lease impairment charges, and $8.8 million in other restructuring costs.
Net income for the fourth quarter of 2024 was $7.3 million or $0.03 basic and diluted earnings per share as compared to a net loss of $42.1 million or $0.22 basic and diluted loss per share in the fourth quarter of 2023. Net loss for the year ended December 31, 2024 was $119.0 million or $0.58 basic and diluted loss per share as compared to a net loss of $276.1 million or $1.45 basic and diluted loss per share in 2023. Excluding the $40.4 million gain from sale of the Huntsville manufacturing facility, and the $1.4 million in non-cash restructuring charges, net loss, on a non-GAAP basis, for the fourth quarter of 2024 was $31.8 million or $0.15 basic and diluted loss per share. Excluding the $40.4 million gain from sale of the Huntsville manufacturing facility, and the $15.7 million in non-cash restructuring and real estate impairment charges, net loss, on a non-GAAP basis, for the full year 2024 was $143.7 million or $0.70 basic and diluted loss per share.
2024 and Recent Business Highlights
Conference Call to Discuss Fourth Quarter 2024 Financial Results
Nektar management will host a conference call to review the results beginning at 5:00 p.m. Eastern Time/2:00 p.m. Pacific Time on March 12, 2025.
This press release and live audio-only webcast of the conference call can be accessed through a link that is posted on the Home Page and Investors section of the Nektar website: http://ir.nektar.com/. The web broadcast of the conference call will be available for replay through April 12, 2025.
To access the conference call, please pre-register at Nektar Earnings Call Registration. All registrants will receive dial-in information and a PIN allowing them to access the live call.
About Nektar Therapeutics
Nektar Therapeutics is a clinical-stage biotechnology company focused on developing treatments that address the underlying immunological dysfunction in autoimmune and chronic inflammatory diseases. Nektar's lead product candidate, rezpegaldesleukin (REZPEG, or NKTR-358), is a novel, first-in-class regulatory T cell stimulator being evaluated in two Phase 2b clinical trials, one in atopic dermatitis and one in alopecia areata. Nektar's pipeline also includes a preclinical bivalent tumor necrosis factor receptor type II (TNFR2) antibody and bispecific programs, NKTR-0165 and NKTR-0166, and a modified hematopoietic colony stimulating factor (CSF) protein, NKTR-422. Nektar, together with various partners, is also evaluating NKTR-255, an investigational IL-15 receptor agonist designed to boost the immune system's natural ability to fight cancer, in several ongoing clinical trials. Nektar is headquartered in San Francisco, California. For further information, visit www.nektar.com and follow Nektar on LinkedIn.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements which can be identified by words such as: "will," "expect," "develop," "potential," "advance," "plan," and similar references to future periods. Examples of forward-looking statements include, among others, statements regarding the therapeutic potential of, and future development plans for, rezpegaldesleukin, NKTR-0165, NKTR-0166, NKTR-422, and NKTR-255. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results to differ materially from those indicated in the forward-looking statements include, among others: (i) our statements regarding the therapeutic potential of rezpegaldesleukin, NKTR-0165, NKTR-0166, NKTR-422 and NKTR-255 are based on preclinical and clinical findings and observations and are subject to change as research and development continue; (ii) rezpegaldesleukin, NKTR-0165, NKTR-0166, NKTR-422 and NKTR-255 are investigational agents and continued research and development for these drug candidates is subject to substantial risks, including negative safety and efficacy findings in future clinical studies (notwithstanding positive findings in earlier preclinical and clinical studies); (iii) rezpegaldesleukin, NKTR-0165, NKTR-0166, NKTR-422 and NKTR-255 are in clinical development and the risk of failure is high and can unexpectedly occur at any stage prior to regulatory approval; (iv) the timing of the commencement or end of clinical trials and the availability of clinical data may be delayed or unsuccessful due to regulatory delays, slower than anticipated patient enrollment, manufacturing challenges, changing standards of care, evolving regulatory requirements, clinical trial design, clinical outcomes, competitive factors, or delay or failure in ultimately obtaining regulatory approval in one or more important markets; (v) a Fast Track designation does not increase the likelihood that rezpegaldesleukin will receive marketing approval in the United States; (vi) patents may not issue from our patent applications for our drug candidates, patents that have issued may not be enforceable, or additional intellectual property licenses from third parties may be required; and (vii) certain other important risks and uncertainties set forth in our Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on November 8, 2024. Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.
For Investors:
Vivian Wu of Nektar Therapeutics
628-895-0661
For Media:
Madelin Hawtin
LifeSci Communications
603-714-2638
This email address is being protected from spambots. You need JavaScript enabled to view it.
NEKTAR THERAPEUTICS | ||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||
(In thousands) | ||||||||||
(Unaudited) | ||||||||||
ASSETS | December 31, 2024 | December 31, 2023(1) | ||||||||
Current assets: | ||||||||||
Cash and cash equivalents | $ 44,252 | $ 35,277 | ||||||||
Short-term investments | 210,974 | 268,339 | ||||||||
Accounts receivable | - | 1,205 | ||||||||
Inventory, net | - | 16,101 | ||||||||
Other current assets | 6,066 | 9,779 | ||||||||
Total current assets | 261,292 | 330,701 | ||||||||
Long-term investments | 13,869 | 25,825 | ||||||||
Property, plant and equipment, net | 3,411 | 18,856 | ||||||||
Operating lease right-of-use assets | 8,413 | 18,007 | ||||||||
Equity method investment in Gannet BioChem | 12,218 | - | ||||||||
Other assets | 4,647 | 4,644 | ||||||||
Total assets | $ 303,850 | $ 398,033 | ||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||
Current liabilities: | ||||||||||
Accounts payable | 11,560 | 9,848 | ||||||||
Accrued expenses | 29,972 | 22,162 | ||||||||
Operating lease liabilities, current portion | 19,868 | 19,259 | ||||||||
Total current liabilities | 61,400 | 51,269 | ||||||||
Operating lease liabilities, less current portion | 82,696 | 98,517 | ||||||||
Liabilities related to the sales of future royalties, net | 91,776 | 112,625 | ||||||||
Other long-term liabilities | 7,241 | 4,635 | ||||||||
Total liabilities | 243,113 | 267,046 | ||||||||
Commitments and contingencies | ||||||||||
Stockholders' equity: | ||||||||||
Preferred stock | - | - | ||||||||
Common stock | 19 | 19 | ||||||||
Capital in excess of par value | 3,659,867 | 3,608,137 | ||||||||
Treasury stock | (3,000) | - | ||||||||
Accumulated other comprehensive income (loss) | 61 | 80 | ||||||||
Accumulated deficit | (3,596,210) | (3,477,249) | ||||||||
Total stockholders' equity | 60,737 | 130,987 | ||||||||
Total liabilities and stockholders' equity | $ 303,850 | $ 398,033 | ||||||||
(1) The consolidated balance sheet at December 31, 2023 has been derived from the audited financial statements at that date but does not include all | ||||||||||
of the information and notes required by generally accepted accounting principles in the United States for complete financial statements |
NEKTAR THERAPEUTICS | ||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||
(In thousands, except per share information) | ||||||||||||||
(Unaudited) | ||||||||||||||
Three months ended December 31, | Year ended December 31, | |||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||
Revenue: | ||||||||||||||
Product sales | $ 12,874 | $ 5,483 | $ 33,563 | $ 20,681 | ||||||||||
Non-cash royalty revenue related to the sales of future royalties | 16,238 | 18,061 | 64,267 | 68,921 | ||||||||||
License, collaboration and other revenue | 63 | 341 | 597 | 520 | ||||||||||
Total revenue | 29,175 | 23,885 | 98,427 | 90,122 | ||||||||||
Operating costs and expenses: | ||||||||||||||
Cost of goods sold | 7,978 | 7,283 | 30,686 | 33,768 | ||||||||||
Research and development | 28,744 | 29,942 | 120,908 | 114,162 | ||||||||||
General and administrative | 17,135 | 17,320 | 76,751 | 77,417 | ||||||||||
Restructuring and impairment | 1,360 | 2,851 | 15,670 | 51,958 | ||||||||||
Impairment of goodwill | - | - | - | 76,501 | ||||||||||
Gain on sale of the Huntsville manufacturing facility | (40,390) | - | (40,390) | - | ||||||||||
Total operating costs and expenses | 14,827 | 57,396 | 203,625 | 353,806 | ||||||||||
Income/(Loss) from operations | 14,348 | (33,511) | (105,198) | (263,684) | ||||||||||
Non-operating income (expense): | ||||||||||||||
Non-cash interest expense on liabilities related to the sales of future royalties | (10,153) | (6,867) | (28,112) | (25,334) | ||||||||||
Interest income | 2,942 | 4,617 | 14,500 | 19,009 | ||||||||||
Other income (expense), net | (135) | (6,347) | (390) | (6,247) | ||||||||||
Total non-operating income (expense), net | (7,346) | (8,597) | (14,002) | (12,572) | ||||||||||
Income/(Loss) before provision for income taxes | 7,002 | (42,108) | (119,200) | (276,256) | ||||||||||
Provision (benefit) for income taxes | (259) | (29) | (239) | (200) | ||||||||||
Net Income/(loss) | $ 7,261 | $ (42,079) | $ (118,961) | $ (276,056) | ||||||||||
Basic and diluted net income/(loss) per share | $ 0.03 | $ (0.22) | $ (0.58) | $ (1.45) | ||||||||||
Weighted average shares outstanding used in computing net income/(loss) per share | ||||||||||||||
Basic | 209,737 | 191,040 | 205,661 | 190,001 | ||||||||||
Diluted | 213,594 | 191,040 | 205,661 | 190,001 | ||||||||||
Last Trade: | US$0.88 |
Daily Change: | -0.03 -3.22 |
Daily Volume: | 1,064,165 |
Market Cap: | US$162.320M |
February 24, 2025 February 10, 2025 |
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