Nektar(NKTR) - 2025 Q2 - Quarterly Results

Financial and Business Highlights Nektar reported $175.9 million cash, extended runway to Q1 2027, and positive Phase 2b data for rezpegaldesleukin Cash and Investment Balances | Metric | Amount (USD) | | :--- | :--- | | Cash and investments (June 30, 2025) | $175.9 million | | Net proceeds from July 2, 2025 offering | ~$107.5 million | | Expected cash runway | Into Q1 2027 | - Announced transformative 16-week induction data from the Phase 2b study of rezpegaldesleukin in atopic dermatitis, demonstrating rapid onset of EASI response and itch relief[4] - Upcoming milestones include reporting 52-week data for rezpegaldesleukin in atopic dermatitis in early 2026 and Phase 2b data in alopecia areata in December 2025[4] - The company is advancing its next T regulatory cell program, NKTR-0165, towards clinical trials in 2026 and is progressing preclinical studies for a new bispecific antibody, NKTR-0166[4] Q2 2025 Financial Performance Nektar reported Q2 2025 revenue of $11.2 million, a net loss of $41.6 million, and reduced operating costs Revenue Revenue significantly declined in Q2 and H1 2025 due to cessation of product sales post-facility sale Revenue Comparison | Period | 2025 Revenue (USD) | 2024 Revenue (USD) | Change | | :--- | :--- | :--- | :--- | | Q2 | $11.2 million | $23.5 million | -52.3% | | H1 | $21.6 million | $45.1 million | -52.1% | - The year-over-year decrease in revenue is attributed to the company no longer recognizing product sales after selling its Huntsville manufacturing facility in December 2024[5] Operating Costs and Expenses Operating costs decreased in Q2 and H1 2025 due to eliminated cost of goods sold and reduced restructuring Operating Costs Comparison | Period | 2025 Operating Costs (USD) | 2024 Operating Costs (USD) | Change | | :--- | :--- | :--- | :--- | | Q2 | $47.4 million | $73.3 million | -35.3% | | H1 | $102.4 million | $130.3 million | -21.4% | - R&D expense for H1 2025 increased to $60.4 million from $57.1 million in H1 2024, driven by development costs for rezpegaldesleukin and NKTR-0165[7] - Non-cash restructuring and impairment charges were immaterial in 2025, compared to $13.3 million in Q2 2024 and $14.3 million in H1 2024[9] Net Loss and Earnings Per Share (EPS) Net loss improved in Q2 2025 to $41.6 million, with loss per share narrowing, adjusted for reverse split Net Loss and Loss Per Share | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Net Loss | ($41.6M) | ($52.4M) | ($92.5M) | ($89.2M) | | Loss Per Share | ($2.95) | ($3.76) | ($6.57) | ($6.63) | - The company recorded non-cash losses from its equity method investment in Gannet BioChem of $2.4 million in Q2 2025 and $6.8 million in H1 2025[10][11] - All share and per-share amounts have been retrospectively adjusted to reflect a one-for-fifteen reverse stock split completed on June 8, 2025[12] Recent Business and Pipeline Updates Nektar achieved key milestones including FDA Fast Track, successful public offering, and positive clinical data - In July 2025, the FDA granted Fast Track designation for rezpegaldesleukin for the treatment of severe-to-very severe alopecia areata[18] - Successfully closed a public offering of common stock in July 2025, raising $115 million in gross proceeds[18] - In June 2025, the REZOLVE-AD study of rezpegaldesleukin in atopic dermatitis met its primary endpoint at week 16, showing statistically significant improvement in EASI score versus placebo[18] - Collaborators presented positive data for NKTR-255 as an adjunctive treatment to CAR T-cell therapy in Large B-cell Lymphoma at the EHA Congress in June 2025[18] Financial Statements Unaudited consolidated financial statements detail Nektar's financial position and operational results for Q2 and H1 2025 Condensed Consolidated Balance Sheets Nektar's total assets decreased to $207.5 million, resulting in a stockholders' deficit as of June 30, 2025 Condensed Consolidated Balance Sheet Summary | Balance Sheet Item (in thousands) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and investments | $175,903 | $269,095 | | Total Assets | $207,534 | $303,850 | | Total Liabilities | $231,745 | $243,113 | | Total Stockholders' Equity (Deficit) | ($24,211) | $60,737 | Condensed Consolidated Statements of Operations Nektar reported Q2 2025 total revenues of $11.2 million and a net loss of $41.6 million Condensed Consolidated Statements of Operations Summary | Statement of Operations (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Total Revenue | $11,175 | $23,489 | | Total Operating Costs and Expenses | $47,405 | $73,263 | | Loss from Operations | ($36,230) | ($49,774) | | Net Loss | ($41,593) | ($52,363) | | Basic and Diluted Net Loss Per Share | ($2.95) | ($3.76) |