Nektar Therapeutics Announces Q2 2024 Financial Results

SAN FRANCISCO, Aug. 8, 2024 -- Nektar Therapeutics (Nasdaq: NKTR) revealed its financial performance for the second quarter that ended on June 30, 2024.

Nektar's financial holdings, including cash and marketable securities, totaled $290.6 million as of June 30, 2024, down from $329.4 million on December 31, 2023. This financial reserve is anticipated to support the company’s strategic and operational needs up until the third quarter of 2026.

"We are progressing well with our rezpegaldesleukin Phase 2 trials targeting atopic dermatitis and alopecia areata," stated Howard W. Robin, President and CEO of Nektar. "Enrollment is on track, and we expect preliminary results in early 2025 for atopic dermatitis and mid-2025 for alopecia areata. Our TNFR2 agonist antibody, NKTR-0165, is advancing through IND-enabling studies, with an IND submission planned for mid-2025. Our financial position remains robust, with resources extending into late 2026."

Financial Overview

Revenue for Q2 2024 reached $23.5 million, up from $20.5 million in Q2 2023. For the first half of 2024, revenue increased to $45.1 million from $42.1 million during the same period in the previous year.

Operating expenses for Q2 2024 were $73.3 million, slightly higher than the $71.1 million in Q2 2023. For the first half of 2024, operating costs totaled $130.3 million, a significant decrease from $227.4 million in the first half of 2023. This reduction was primarily due to diminished restructuring and impairment costs, as well as a non-recurring $76.5 million goodwill impairment in Q1 2023.

R&D expenditure remained steady at $29.7 million for Q2 in both 2024 and 2023. However, for the first half of 2024, R&D expenses dropped to $57.1 million from $60.2 million in 2023. This downturn was mainly attributed to lower personnel and facility costs, alongside reduced development spending on NKTR-255, partially offset by increased investment in rezpegaldesleukin and NKTR-0165.

G&A expenses rose to $20.5 million in Q2 2024, compared to $17.9 million in Q2 2023. For the first half of 2024, G&A costs increased to $40.7 million from $39.0 million in 2023. This rise was driven primarily by fewer facility costs being allocated to R&D, partially mitigated by reduced personnel costs.

Non-cash restructuring and impairment charges were $13.3 million in Q2 2024 and $14.3 million for the first half of 2024, stemming from the declining San Francisco real estate market and related lease obligations.

The net loss for Q2 2024 was $52.4 million, or $0.25 per share, compared to $51.1 million, or $0.27 per share, in Q2 2023. For the first half of 2024, the net loss was $89.2 million, or $0.44 per share, a substantial improvement from the $188.1 million, or $0.99 per share, loss in the first half of 2023. Excluding non-cash charges, the adjusted net loss for Q2 and the first half of 2024 were $39.1 million and $74.9 million, respectively, or $0.19 and $0.37 per share.

Second Quarter and Recent Developments

Recent publications and presentations highlighted the company's advancements. In July 2024, Stanford collaborators published Phase 1 trial data for NKTR-255 combined with CD19/22 CAR-T cell therapy in patients with refractory B-cell acute lymphoblastic leukemia. Twelve-month remission-free survival rates were notably higher for NKTR-255 (67%) compared to historical controls (38%), with 89% of patients achieving complete remission without detectable residual disease.

In June 2024, Nektar presented preclinical data on NKTR-0165 at the EULAR Congress. This unique antibody could potentially become a pioneering treatment for autoimmune diseases such as ulcerative colitis and vitiligo, with human trials expected to begin in early 2025.

Enrollment for the Phase 2b studies of rezpegaldesleukin is progressing on schedule, with initial data expected in early and mid-2025 for atopic dermatitis and alopecia areata, respectively.

Upcoming presentations at the 2024 European Academy of Dermatology and Venereology Congress include studies on rezpegaldesleukin for atopic dermatitis and alopecia areata.

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