Nektar(US:NKTR)2025-05-08 22:01PART I: FINANCIAL INFORMATION This section presents Nektar Therapeutics' unaudited condensed consolidated financial statements and management's analysis Item 1. Condensed Consolidated Financial Statements — Unaudited Presents Nektar Therapeutics' unaudited condensed consolidated financial statements and notes for Q1 2025 and Q1 2024 Condensed Consolidated Balance Sheets This section details Nektar Therapeutics' financial position as of March 31, 2025, and December 31, 2024 Condensed Consolidated Balance Sheets (in thousands) | Metric | March 31, 2025 (in thousands) | December 31, 2024 (in thousands) | | :-------------------------------- | :----------------------------- | :----------------------------- | | Cash and cash equivalents | $38,894 | $44,252 | | Short-term investments | $179,738 | $210,974 | | Total current assets | $229,913 | $261,292 | | Total assets | $256,241 | $303,850 | | Total current liabilities | $70,930 | $61,400 | | Liabilities related to sales of future royalties, net | $86,322 | $91,776 | | Total liabilities | $242,503 | $243,113 | | Total stockholders' equity | $13,738 | $60,737 | - Total assets decreased from $303.85 million at December 31, 2024, to $256.24 million at March 31, 2025, primarily driven by a reduction in cash and cash equivalents and short-term investments24 - Total stockholders' equity significantly decreased from $60.74 million at December 31, 2024, to $13.74 million at March 31, 2025, largely due to the accumulated deficit24 Condensed Consolidated Statements of Operations This section presents Nektar Therapeutics' revenues, expenses, and net loss for Q1 2025 and Q1 2024 Condensed Consolidated Statements of Operations (in thousands) | Metric (in thousands) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | Change ($) | Change (%) | | :-------------------------------------- | :-------------------------------- | :-------------------------------- | :--------- | :--------- | | Product sales | $— | $6,034 | $(6,034) | (100)% | | Non-cash royalty revenue | $10,460 | $15,508 | $(5,048) | (33)% | | Total revenue | $10,460 | $21,639 | $(11,179) | (52)% | | Research and development | $30,480 | $27,408 | $3,072 | 11% | | General and administrative | $24,346 | $20,149 | $4,197 | 21% | | Total operating costs and expenses | $54,995 | $57,066 | $(2,071) | (4)% | | Loss from operations | $(44,535) | $(35,427) | $(9,108) | 26% | | Net loss | $(50,882) | $(36,802) | $(14,080) | 38% | | Basic and diluted net loss per share | $(0.24) | $(0.19) | $(0.05) | 26% | - Total revenue decreased by 52% year-over-year, primarily due to the cessation of product sales following the manufacturing facility sale and a 33% decrease in non-cash royalty revenue26125128 - Net loss increased by 38% to $50.88 million, driven by higher operating losses and a new loss from equity method investment26125 Condensed Consolidated Statements of Comprehensive Loss Outlines Nektar Therapeutics' net loss and other comprehensive income (loss) for Q1 2025 and Q1 2024 Condensed Consolidated Statements of Comprehensive Loss (in thousands) | Metric (in thousands) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :-------------------------------- | :-------------------------------- | :-------------------------------- | | Net loss | $(50,882) | $(36,802) | | Other comprehensive income (loss) | $(22) | $(483) | | Comprehensive loss | $(50,904) | $(37,285) | - Comprehensive loss increased to $50.90 million in Q1 2025 from $37.29 million in Q1 2024, primarily reflecting the higher net loss28 Condensed Consolidated Statements of Stockholders' Equity Details changes in Nektar Therapeutics' stockholders' equity from Q4 2024 to Q1 2025 Condensed Consolidated Statements of Stockholders' Equity (in thousands) | Metric (in thousands) | Balance at December 31, 2024 | Balance at March 31, 2025 | | :-------------------------------- | :--------------------------- | :------------------------ | | Common Stock Amount | $19 | $19 | | Capital in Excess of Par Value | $3,659,867 | $3,663,772 | | Treasury Stock Amount | $(3,000) | $(3,000) | | Accumulated Other Comprehensive Income/(Loss) | $61 | $39 | | Accumulated Deficit | $(3,596,210) | $(3,647,092) | | Total Stockholders' Equity | $60,737 | $13,738 | - Total stockholders' equity decreased significantly from $60.74 million at December 31, 2024, to $13.74 million at March 31, 2025, mainly due to the accumulated deficit from the net loss30 Condensed Consolidated Statements of Cash Flows Presents Nektar Therapeutics' cash flows from operating, investing, and financing activities for Q1 2025 and 2024 Condensed Consolidated Statements of Cash Flows (in thousands) | Metric (in thousands) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :-------------------------------- | :-------------------------------- | :-------------------------------- | | Net cash used in operating activities | $(49,053) | $(47,888) | | Net cash provided by investing activities | $43,689 | $19,258 | | Net cash provided by financing activities | $7 | $42,003 | | Net increase (decrease) in cash and cash equivalents | $(5,358) | $13,365 | | Cash and cash equivalents at end of period | $38,894 | $48,642 | - Net cash used in operating activities remained high at $49.05 million in Q1 2025, comparable to $47.89 million in Q1 202432158 - Net cash provided by investing activities increased significantly to $43.69 million in Q1 2025 from $19.26 million in Q1 2024, primarily due to higher maturities of investments32159 - Net cash provided by financing activities decreased substantially to $0.007 million in Q1 2025 from $42.00 million in Q1 2024, as the prior year included proceeds from a pre-funded warrant and sale of future royalties32160 Notes to Condensed Consolidated Financial Statements Provides detailed explanations and disclosures supporting Nektar Therapeutics' condensed consolidated financial statements Note 1 — Organization and Summary of Significant Accounting Policies Describes Nektar Therapeutics' business, key drug candidates, financial outlook, and significant accounting policies - Nektar