Nektar Therapeutics Q3 Loss Narrower Than Expected, Revenues Rise Y/Y

Core Insights - Nektar Therapeutics reported a narrower loss of $1.87 per share for Q3 2025, compared to the expected loss of $2.85, and a loss of $2.66 per share in the same quarter last year [1][5] - Total revenues for the quarter were $11.8 million, more than halving year over year, but slightly exceeding the Zacks Consensus Estimate of $11 million [2][5] - The company's stock rose 4.3% in after-market trading following the earnings report, with a year-to-date increase of 295.4%, significantly outperforming the industry growth of 3.7% [3] Financial Performance - The adjusted loss, excluding non-cash losses from equity investments, was $1.85 per share [1] - Research and development expenses decreased by 22% year over year to $27.3 million, primarily due to reduced expenses for NKTR-255 development [6] - General and administrative expenses fell 15% year over year to $16.1 million, attributed to lower facility and stock-based compensation costs [6] - As of September 30, 2025, the company had cash and cash equivalents totaling $270.2 million, up from $175.9 million as of June 30, 2025, with expectations to support operations into Q2 2027 [7] Pipeline Developments - Nektar's lead candidate, rezpegaldesleukin (rezpeg), is in Phase IIb studies for atopic dermatitis and alopecia areata, showing promising progress [8][9] - The Phase IIb REZOLVE-AD study for atopic dermatitis met its primary and key secondary endpoints [9] - Rezpeg has received Fast Track designation from the FDA for both severe-to-very severe alopecia areata and moderate-to-severe atopic dermatitis [10] - The company regained full rights to rezpeg from Eli Lilly in April 2023, eliminating royalty obligations [11] Market Position - Nektar Therapeutics currently holds a Zacks Rank of 2 (Buy) [12] - Other biotech stocks with a similar ranking include ANI Pharmaceuticals and Acadia Pharmaceuticals [12]