Nektar(US:NKTR)2024-08-08 21:51Financial Performance - Total revenue for the three months ended June 30, 2024, was $23.489 million, a 15% increase compared to $20.499 million for the same period in 2023[98] - Product sales increased by 43% to $6.640 million in Q2 2024 from $4.658 million in Q2 2023[98] - The company reported a net loss of $52.363 million for the three months ended June 30, 2024, compared to a net loss of $51.122 million for the same period in 2023, reflecting a 2% increase in losses[98] - Product sales increased to $12,674 million for the six months ended June 30, 2024, representing a 35% increase compared to $9,376 million in the same period of 2023[100] - Total revenue for the six months ended June 30, 2024, was $45,128 million, a 7% increase from $42,093 million in 2023[100] - Net loss for the six months ended June 30, 2024, was $89,165 million, a 53% improvement compared to a net loss of $188,140 million in 2023[100] - Cash flows used in operating activities for the six months ended June 30, 2024, were $85.6 million, down from $103.4 million in the same period of 2023[120] Research and Development - Research and development expenses remained stable at $29.724 million in Q2 2024, compared to $29.681 million in Q2 2023[98] - Research and development expenses are expected to increase in 2024 due to the development of rezpegaldesleukin in two Phase 2b trials[105] - The company initiated a Phase 2b clinical study of rezpegaldesleukin in patients with moderate-to-severe atopic dermatitis in late October 2023[92] - Rezpegaldesleukin demonstrated dose-dependent improvements in eczema area and severity index (EASI) and was well tolerated in a Phase 1b study[92] - NKTR-255 is being evaluated in a Nektar-sponsored Phase 2 study following CD19 CAR-T cell therapy in patients with large B-cell lymphoma, with data expected before the end of 2024[94] - The company is advancing its preclinical program NKTR-0165, a TNF receptor type II agonist, with IND enabling studies planned for 2024[94] - The company plans to continue advancing promising early research drug candidates into preclinical development over the next several years[107] Expenses and Costs - Total operating costs and expenses decreased to $130,329 million for the six months ended June 30, 2024, down 43% from $227,402 million in 2023[100] - General and administrative expenses increased for the six months ended June 30, 2024, reflecting a reduction in facilities costs allocated to research and development[110] - The company incurred $5.5 million in costs for the wind down of the bempegaldesleukin program in 2023, with these costs reported within research and development expenses for 2024[112] - Severance and benefits expense for the 2023 Restructuring Plan totaled $7.9 million in 2023, with no expected expenses for this plan in 2024[112] - The company recognized $35.3 million in non-cash impairment charges for the full year 2023, primarily related to office and laboratory space[114] - The company recorded a provision of $3.1 million for net realizable value as of June 30, 2024, due to expected revenue being less than manufacturing costs[102] Cash and Investments - The company has approximately $290.6 million in cash and investments in marketable securities as of June 30, 2024, to fund its business plans for at least the next twelve months[96] - The company expects cash flows used in operating activities to increase in 2024 due to the development of rezpegaldesleukin in Phase 2b trials[120] - The company has no credit facility or committed capital sources, with financing alternatives dependent on the success of drug development programs[119] Collaborations and Agreements - The company received $1.9 billion in total consideration from collaboration agreements, including a $150 million upfront payment from Lilly for rezpegaldesleukin[119] - The company regained full rights to rezpegaldesleukin after the termination of the licensing agreement with Eli Lilly on April 23, 2023[92] - The company expects to significantly reduce the provision for net realizable value in the three months ending September 30, 2024, following a new agreement with UCB[102] - Non-cash royalty revenue is expected to decrease for the full year 2024 due to a reduction in royalty rates from UCB[103] - The company is seeking to sublease all laboratory and office space due to adverse market conditions, particularly in the San Francisco Bay Area[119]