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Nektar (NKTR) Q4 Earnings Top, Three Bempeg Filings Due in 2022
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Nektar Therapeutics (NKTR - Free Report) reported a loss of 79 cents per share for the fourth quarter of 2021, narrower than the Zacks Consensus Estimate of a loss of 81 cents but wider than the year-ago loss of 65 cents.
Quarterly revenues were up 6.4% year over year to $25 million during the quarter, slightly missing the Zacks Consensus Estimate of $25.2 million.
Despite the mixed quarterly results, Nektar’s shares were up 2.3% in after-hours trading on Feb 28. Shares of the company have declined 56.7% in the past year compared with the industry’s decrease of 31%.
Image Source: Zacks Investment Research
Quarter in Detail
Nektar’s top line comprises product sales, royalty revenues, non-cash royalty revenues along with license, collaboration and other revenues.
In the fourth quarter, product sales increased 104% from the year-ago period to $5.9 million. Non-cash royalty revenues were $19.1 million in the quarter, down 7.2% from the year-ago quarter.
License, collaboration and other revenues were $40,000 in the quarter compared with $0.4 million in the year-ago quarter.
The company did not record any Royalty revenues during the quarter as the company sold its rights to receive sales-based royalties for five partnered drugs last year.
Research and development (R&D) expenses decreased 3% to $99.6 million. General and administrative (G&A) expenses were up 18.4% year over year to $32.1 million in the reported quarter. The increase in G&A expenses was led by costs to support pre-commercialization activities related to bempegaldesleukin or bempeg.
Full-Year Results
Nektar reported revenues of $101.9 million, down 33.4% year over year. The company incurred a loss of $2.86 per share for 2021, 14.9% wider than the year-ago period.
2022 Guidance
Nektar issued guidance for revenues and operating expenses for 2022. In terms of revenues, the company currently assumes that it will receive milestone payments related only to regulatory filings for bempeg expected later this. Although commercial milestone payments related to bempeg are anticipated in 2023, the company will provide updates if any potential launch happens this year.
Nektar expects its total revenues to be between $185 million and $195 million in 2022. This includes an anticipated $100 million from Bristol-Myers related to bempeg regulatory filings. The company anticipates $70 million to be recorded in the third quarter of 2022 and the rest $30 million in the fourth quarter. The company anticipates $70 million to $75 million in non-cash royalty revenues and $15 million to $20 million in product sales.
The company expects R&D expense to be $500-$525 million and G&A expense in the range of $175 million to $195 million.
Pipeline Update
Nektar remains on track with the development of its lead pipeline candidate, bempegaldesleukin or bempeg, as a potential treatment for different oncology indications.
Top-line data from three registrational studies evaluating bempeg plus Opdivo in patients with melanoma, renal cell carcinoma and bladder cancer are expected in the first half of 2022. The company is confident about the data readout and has already started preparations for potential regulatory filings and the commercialization of the candidate. It believes that data from these registrational studies will support an expedited filing and bempeg may be launched later this year or early 2023.
Two other registrational studies are evaluating the bempeg plus Opdivo as a potential treatment for urothelial cancer and adjuvant melanoma.
The phase I/II study — PROPEL — is evaluating bempeg in combination with Merck’s (MRK - Free Report) Keytruda for treating metastatic non-small cell lung cancer. Initial data from the study presented in November last year showed that bempeg plus Merck’s Keytruda demonstrated early evidence of clinical benefit. A phase II/III study is evaluating bempeg plus Merck’s Keytruda as a first-line treatment for metastatic or unresectable recurrent squamous cell carcinoma of the head and neck in patients whose tumors express PD-L1.
Apart from bempeg, Nektar is developing NKTR-255 for treating several oncology indications including non-Hodgkin lymphoma, multiple myeloma, head and neck squamous cell carcinoma and colorectal cancer in early-stage studies. In September 2021, Nektar also signed an agreement with Pfizer (PFE - Free Report) and Germany-based Merck KGaA for the evalution of a new NKTR-255 combo regimen. Per the agreement, NKTR-255 will be developed in combination with Pfizer/Merck KGaA’s PD-L1 inhibitor, Bavencio (avelumab) as a potential treatment of urothelial carcinoma. A combination of NKTR-255 and Bavencio is being evaluated as part of Pfizer/Merck KGaA’s phase II umbrella study — JAVELIN Bladder Medley.
Nektar’s partner, Eli Lilly (LLY - Free Report) is evaluating NKTR-358 in two mid-stage studies involving patients with lupus or ulcerative colitis. Lilly plans to initiate two more mid-stage studies to evaluate the candidate as a potential treatment for atopic dermatitis and another undisclosed auto-immune indication. Lilly initiated the atopic dermatitis study based on data from a proof-of-concept study, which demonstrated sustained disease control for at least six months following treatment with NKTR-358.
Nektar Therapeutics Price, Consensus and EPS Surprise
Image: Bigstock
Nektar (NKTR) Q4 Earnings Top, Three Bempeg Filings Due in 2022
Nektar Therapeutics (NKTR - Free Report) reported a loss of 79 cents per share for the fourth quarter of 2021, narrower than the Zacks Consensus Estimate of a loss of 81 cents but wider than the year-ago loss of 65 cents.
Quarterly revenues were up 6.4% year over year to $25 million during the quarter, slightly missing the Zacks Consensus Estimate of $25.2 million.
Despite the mixed quarterly results, Nektar’s shares were up 2.3% in after-hours trading on Feb 28. Shares of the company have declined 56.7% in the past year compared with the industry’s decrease of 31%.
Image Source: Zacks Investment Research
Quarter in Detail
Nektar’s top line comprises product sales, royalty revenues, non-cash royalty revenues along with license, collaboration and other revenues.
In the fourth quarter, product sales increased 104% from the year-ago period to $5.9 million. Non-cash royalty revenues were $19.1 million in the quarter, down 7.2% from the year-ago quarter.
License, collaboration and other revenues were $40,000 in the quarter compared with $0.4 million in the year-ago quarter.
The company did not record any Royalty revenues during the quarter as the company sold its rights to receive sales-based royalties for five partnered drugs last year.
Research and development (R&D) expenses decreased 3% to $99.6 million. General and administrative (G&A) expenses were up 18.4% year over year to $32.1 million in the reported quarter. The increase in G&A expenses was led by costs to support pre-commercialization activities related to bempegaldesleukin or bempeg.
Full-Year Results
Nektar reported revenues of $101.9 million, down 33.4% year over year. The company incurred a loss of $2.86 per share for 2021, 14.9% wider than the year-ago period.
2022 Guidance
Nektar issued guidance for revenues and operating expenses for 2022. In terms of revenues, the company currently assumes that it will receive milestone payments related only to regulatory filings for bempeg expected later this. Although commercial milestone payments related to bempeg are anticipated in 2023, the company will provide updates if any potential launch happens this year.
Nektar expects its total revenues to be between $185 million and $195 million in 2022. This includes an anticipated $100 million from Bristol-Myers related to bempeg regulatory filings. The company anticipates $70 million to be recorded in the third quarter of 2022 and the rest $30 million in the fourth quarter. The company anticipates $70 million to $75 million in non-cash royalty revenues and $15 million to $20 million in product sales.
The company expects R&D expense to be $500-$525 million and G&A expense in the range of $175 million to $195 million.
Pipeline Update
Nektar remains on track with the development of its lead pipeline candidate, bempegaldesleukin or bempeg, as a potential treatment for different oncology indications.
Top-line data from three registrational studies evaluating bempeg plus Opdivo in patients with melanoma, renal cell carcinoma and bladder cancer are expected in the first half of 2022. The company is confident about the data readout and has already started preparations for potential regulatory filings and the commercialization of the candidate. It believes that data from these registrational studies will support an expedited filing and bempeg may be launched later this year or early 2023.
Two other registrational studies are evaluating the bempeg plus Opdivo as a potential treatment for urothelial cancer and adjuvant melanoma.
The phase I/II study — PROPEL — is evaluating bempeg in combination with Merck’s (MRK - Free Report) Keytruda for treating metastatic non-small cell lung cancer. Initial data from the study presented in November last year showed that bempeg plus Merck’s Keytruda demonstrated early evidence of clinical benefit. A phase II/III study is evaluating bempeg plus Merck’s Keytruda as a first-line treatment for metastatic or unresectable recurrent squamous cell carcinoma of the head and neck in patients whose tumors express PD-L1.
Apart from bempeg, Nektar is developing NKTR-255 for treating several oncology indications including non-Hodgkin lymphoma, multiple myeloma, head and neck squamous cell carcinoma and colorectal cancer in early-stage studies. In September 2021, Nektar also signed an agreement with Pfizer (PFE - Free Report) and Germany-based Merck KGaA for the evalution of a new NKTR-255 combo regimen. Per the agreement, NKTR-255 will be developed in combination with Pfizer/Merck KGaA’s PD-L1 inhibitor, Bavencio (avelumab) as a potential treatment of urothelial carcinoma. A combination of NKTR-255 and Bavencio is being evaluated as part of Pfizer/Merck KGaA’s phase II umbrella study — JAVELIN Bladder Medley.
Nektar’s partner, Eli Lilly (LLY - Free Report) is evaluating NKTR-358 in two mid-stage studies involving patients with lupus or ulcerative colitis. Lilly plans to initiate two more mid-stage studies to evaluate the candidate as a potential treatment for atopic dermatitis and another undisclosed auto-immune indication. Lilly initiated the atopic dermatitis study based on data from a proof-of-concept study, which demonstrated sustained disease control for at least six months following treatment with NKTR-358.
Nektar Therapeutics Price, Consensus and EPS Surprise
Nektar Therapeutics price-consensus-eps-surprise-chart | Nektar Therapeutics Quote
Zacks Rank
Nektar currently has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.