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Here's Why You May Add Nektar (NKTR) Stock to Your Portfolio
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Nektar Therapeutics (NKTR - Free Report) , which is focused on the development of treatments utilizing its PEGylation and advanced polymer conjugate technology platforms, has a Zacks Rank #2 (Buy).
Here we discuss some reasons why investing in NKTR stock now is a good idea.
Though Nektrar has witnessed several pipeline setbacks in the past few years, this CA-based company is currently focusing on the development of rezpegaldesleukin (rezpeg) and NKTR-255.
Rezpeg is being developed in collaboration with drug giant Eli Lilly (LLY - Free Report) for several autoimmune indications. However, in February, the phase II study evaluating rezpeg for systemic lupus erythematosus (SLE) did not meet the primary endpoint of a reduction in SLE disease activity index at six months. Lilly notified Nektar that it does not intend to advance Rezpeg to phase III development for SLE.
Lilly and Nektar are discussing the next steps for the candidate’s planned phase II study for atopic dermatitis (AD). The candidate demonstrated sustained disease control for at least six months in AD patients in a previously completed proof-of-concept study. Lilly and Nektar also plan to begin another phase II study in a yet-to-be-announced autoimmune indication.
Nektar received an upfront payment from Lilly in 2017 and is eligible to receive up to $250 million in future milestone payments. Lilly also shares the majority portion of the development costs related to rezpeg.
Nektar is developing NKTR-255 on its own as a cell therapy potentiator to boost the anti-tumor immune response of other cancer therapies, especially CAR T therapies. Nektar is evaluating NKTR-255 in combination with PD-L1 inhibitor avelumab in the ongoing phase II JAVELIN Bladder Medley study in patients with locally advanced or metastatic urothelial carcinoma. The candidate is also being evaluated in a phase I/II study in patients with relapsed/refractory (r/r) head and neck squamous cell carcinoma or colorectal cancer. It is also being evaluated in multiple early-stage studies targeting oncology indications.
Management has initiated a phase II/III study evaluating the combination of NKTR-255 and an approved autologous CAR T therapy in r/r large B-cell lymphoma. Initial data from the study is expected in the first half of 2024.
The company’s pipeline candidate, bempegaldesleukin (bempeg), failed in three late-stage registrational studies in the first quarter of 2022. Following these failures, Nektar stopped all clinical studies on bempeg in early 2022. The candidate was being developed in collaboration with Bristol Myers.
However, following the discontinuation of bempeg development, Nektar announced cost-restructuring plans to reduce costs and extend the cash runway. It expects its cash resources to be enough to fund its operations into the first half of 2025.
The stock of Nektar Therapeutics has declined 84.9% in the past year compared with a decrease of 17.9% for the industry. However, the company has seen positive estimate revisions.
Image Source: Zacks Investment Research
For Nektar Therapeutics, the consensus estimate for 2023 loss has narrowed from $1.01 per share to 90 cents per share over the past 60 days. For 2024, the loss estimates have narrowed from $1.00 per share to 88 cents per share over the same timeframe.
Nektar Therapeutics beat earnings expectations in all the trailing four quarters. The company delivered a four-quarter earnings surprise of 31.40%, on average.
Estimates for Surrozen’s 2023 loss per share have narrowed from $1.18 per share to $1.00 per share over the past 60 days while that for 2024 have narrowed from 68 cents per share to 52 cents per share over the same timeframe. Surrozen’s stock has declined 78.1% in the past year.
Surrozen beat earnings expectations in all the trailing four quarters. The company delivered a four-quarter earnings surprise of 43.85%, on average.
Larimar Therapeutics’ loss estimates for 2023 have narrowed from $2.07 per share to $1.08 per share over the past 60 days, while that for 2024 have narrowed from $2.28 per share to $1.15 per share over the same timeframe.
The stock of Larimar Therapeutics has risen 30.8% in the past year
Larimar Therapeutics beat earnings expectations in each of the trailing four quarters. The company delivered a four-quarter earnings surprise of 36.06%, on average.
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Here's Why You May Add Nektar (NKTR) Stock to Your Portfolio
Nektar Therapeutics (NKTR - Free Report) , which is focused on the development of treatments utilizing its PEGylation and advanced polymer conjugate technology platforms, has a Zacks Rank #2 (Buy).
Here we discuss some reasons why investing in NKTR stock now is a good idea.
Though Nektrar has witnessed several pipeline setbacks in the past few years, this CA-based company is currently focusing on the development of rezpegaldesleukin (rezpeg) and NKTR-255.
Rezpeg is being developed in collaboration with drug giant Eli Lilly (LLY - Free Report) for several autoimmune indications. However, in February, the phase II study evaluating rezpeg for systemic lupus erythematosus (SLE) did not meet the primary endpoint of a reduction in SLE disease activity index at six months. Lilly notified Nektar that it does not intend to advance Rezpeg to phase III development for SLE.
Lilly and Nektar are discussing the next steps for the candidate’s planned phase II study for atopic dermatitis (AD). The candidate demonstrated sustained disease control for at least six months in AD patients in a previously completed proof-of-concept study. Lilly and Nektar also plan to begin another phase II study in a yet-to-be-announced autoimmune indication.
Nektar received an upfront payment from Lilly in 2017 and is eligible to receive up to $250 million in future milestone payments. Lilly also shares the majority portion of the development costs related to rezpeg.
Nektar is developing NKTR-255 on its own as a cell therapy potentiator to boost the anti-tumor immune response of other cancer therapies, especially CAR T therapies. Nektar is evaluating NKTR-255 in combination with PD-L1 inhibitor avelumab in the ongoing phase II JAVELIN Bladder Medley study in patients with locally advanced or metastatic urothelial carcinoma. The candidate is also being evaluated in a phase I/II study in patients with relapsed/refractory (r/r) head and neck squamous cell carcinoma or colorectal cancer. It is also being evaluated in multiple early-stage studies targeting oncology indications.
Management has initiated a phase II/III study evaluating the combination of NKTR-255 and an approved autologous CAR T therapy in r/r large B-cell lymphoma. Initial data from the study is expected in the first half of 2024.
The company’s pipeline candidate, bempegaldesleukin (bempeg), failed in three late-stage registrational studies in the first quarter of 2022. Following these failures, Nektar stopped all clinical studies on bempeg in early 2022. The candidate was being developed in collaboration with Bristol Myers.
However, following the discontinuation of bempeg development, Nektar announced cost-restructuring plans to reduce costs and extend the cash runway. It expects its cash resources to be enough to fund its operations into the first half of 2025.
The stock of Nektar Therapeutics has declined 84.9% in the past year compared with a decrease of 17.9% for the industry. However, the company has seen positive estimate revisions.
Image Source: Zacks Investment Research
For Nektar Therapeutics, the consensus estimate for 2023 loss has narrowed from $1.01 per share to 90 cents per share over the past 60 days. For 2024, the loss estimates have narrowed from $1.00 per share to 88 cents per share over the same timeframe.
Nektar Therapeutics beat earnings expectations in all the trailing four quarters. The company delivered a four-quarter earnings surprise of 31.40%, on average.
Other Stocks to Consider
Some other top-ranked small drugmakers are Surrozen (SRZN - Free Report) and Larimar Therapeutics (LRMR - Free Report) , which have a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Estimates for Surrozen’s 2023 loss per share have narrowed from $1.18 per share to $1.00 per share over the past 60 days while that for 2024 have narrowed from 68 cents per share to 52 cents per share over the same timeframe. Surrozen’s stock has declined 78.1% in the past year.
Surrozen beat earnings expectations in all the trailing four quarters. The company delivered a four-quarter earnings surprise of 43.85%, on average.
Larimar Therapeutics’ loss estimates for 2023 have narrowed from $2.07 per share to $1.08 per share over the past 60 days, while that for 2024 have narrowed from $2.28 per share to $1.15 per share over the same timeframe.
The stock of Larimar Therapeutics has risen 30.8% in the past year
Larimar Therapeutics beat earnings expectations in each of the trailing four quarters. The company delivered a four-quarter earnings surprise of 36.06%, on average.