Core Viewpoint - Nektar Therapeutics reported a wider-than-expected adjusted loss in Q1 2025, with significant revenue decline attributed to the sale of its manufacturing facility, leading to a reliance on non-cash royalty revenues [1][2]. Financial Performance - The adjusted loss per share for Q1 2025 was 22 cents, compared to the Zacks Consensus Estimate of an 18-cent loss and a loss of 18 cents in the same quarter last year [1]. - Total revenues for Q1 2025 decreased by 51.4% year-over-year to $10.5 million, missing the Zacks Consensus Estimate of $18 million [1]. - Research and development (R&D) expenses rose to $30.5 million, an increase of approximately 11.3% year-over-year [4]. - General and administrative (G&A) expenses increased by around 20.9% year-over-year to $24.3 million [4]. - As of March 31, 2025, the company had cash and cash equivalents and marketable securities totaling $220.7 million, down from $269.1 million as of December 31, 2024 [4]. Guidance - Nektar anticipates revenues for the remaining three quarters of 2025 to be similar to Q1 levels, projecting total revenues of around $40 million for the full year [5]. - R&D costs for 2025 are expected to range between $110 million and $120 million, while G&A expenses are anticipated to be in the $60-$65 million range [5]. - The company expects to end 2025 with approximately $100 million in cash and investments, which is projected to fund operations into the fourth quarter of 2026 [6]. Pipeline Developments - Nektar's lead pipeline candidate, rezpegaldesleukin (rezpeg), is being developed for various autoimmune and inflammatory diseases, with the company regaining full rights from Eli Lilly in April 2023 [7][8]. - Two phase IIb studies are currently evaluating rezpeg for atopic dermatitis and alopecia areata, with top-line data expected in the coming months [9]. - A new clinical trial agreement was established in February 2025 to evaluate rezpeg in a phase II study for new-onset type 1 diabetes mellitus, expected to start later this year [10]. - Nektar also has two pre-clinical programs, NKTR-0165 and NKTR-0166, with plans to submit an investigational new drug application for NKTR-0165 by the end of 2025 [11].
Nektar Q1 Loss Wider Than Expected, Revenues Fall Y/Y, Stock Down