SAN
FRANCISCO, May 5, 2022 /PRNewswire/ -- Nektar
Therapeutics (Nasdaq: NKTR) today reported financial results
for the first quarter ended March 31, 2022.
Cash and investments in marketable securities at March 31,
2022 were approximately $704.4 million as compared
to $798.8 million at December 31, 2021, which is
expected to support operations into 2025.
"The new strategic plan that we recently announced refocuses our
company around specific investment into our most important pipeline
programs – NKTR-358, NKTR-255, and core preclinical candidates,"
said Howard W. Robin, President and CEO of Nektar. "In
addition, we have now implemented a cost restructuring plan which
extends our cash runway through the first half of 2025. We believe
our pipeline in auto-immune disease and oncology provides a path to
bringing important therapeutics to patients and creating value for
our shareholders."
Summary of Financial
Results
Revenue in the first quarter of 2022 was $24.8 million as compared to $23.6 million in the first quarter of 2021.
Total operating costs and expenses in the first quarter of 2022
were $141.4 million as compared to
$133.0 million in the first quarter
of 2021. Operating costs and expenses increased primarily as a
result of an increase in R&D expense.
R&D expense in the first quarter of 2022 was $107.3 million as compared to $95.6 million for the first quarter of 2021.
R&D expense increased primarily due to increases in expense for
bempegaldesleukin, NKTR-255 and NKTR-358.
G&A expense was $27.3 million
in the first quarter of 2022 and $31.7
million in the first quarter of 2021.
Net loss for the first quarter of 2022 was $90.4 million or $0.49 basic and diluted loss per share as
compared to a net loss of $123.0
million or $0.68 basic and
diluted loss per share in the first quarter of 2021.
On April 25, 2022, Nektar
announced new strategic and cost restructuring plans
(https://ir.nektar.com/news-releases/news-release-details/nektar-therapeutics-announces-strategic-reorganization-plan-and)
and conducted a call with analysts and investors to present those
plans. On that call, the company provided annual financial guidance
for 2022, and because of that, the company stated it would not hold
its regular quarterly conference call conducted in conjunction with
release of Q1 2022 financial results.
About Nektar
Nektar Therapeutics is a biopharmaceutical company with a
robust, wholly owned R&D pipeline of investigational medicines
in oncology, immunology, and inflammatory diseases as well as
a portfolio of approved partnered medicines. Nektar is
headquartered in San Francisco,
California, with additional operations in Huntsville, Alabama and Hyderabad, India. Further information about
the company and its drug development programs and capabilities may
be found online at http://www.nektar.com.
Cautionary Note Regarding
Forward-Looking Statements
This press release contains forward-looking statements which
can be identified by words such as: "will," "may," "extend,"
"potential," "create," "provide"" and similar references to future
periods. Examples of forward-looking statements include, among
others, statements we make regarding the therapeutic potential of,
and future development plans for NKTR-358, NKTR-255 and our other
drug candidates in research programs, the prospects and plans for
our collaborations with other companies, the timing of the
initiation of clinical studies and the data readouts for our drug
candidates, and our expectations (including our expected charges
and cost savings) following our corporate restructuring,
reorganization and workforce reduction, and our expected working
capital and our cash runway. Forward-looking statements are neither
historical facts nor assurances of future performance. Instead,
they are based only on our current beliefs, expectations and
assumptions regarding the future of our business, future plans and
strategies, anticipated events and trends, the economy and other
future conditions. Because forward-looking statements relate to the
future, they are subject to inherent uncertainties, risks and
changes in circumstances that are difficult to predict and many of
which are outside of our control. Our actual results may differ
materially from those indicated in the forward-looking statements.
Therefore, you should not rely on any of these forward-looking
statements. Important factors that could cause our actual results
to differ materially from those indicated in the forward-looking
statements include, among others: (i) our statements regarding the
therapeutic potential of NKTR-358,NKTR-255 and our other drug
candidates are based on preclinical and clinical findings and
observations and are subject to change as research and development
continue; (ii) NKTR-358,NKTR-255 and our other drug candidates are
investigational agents and continued research and development for
these drug candidates is subject to substantial risks, including
negative safety and efficacy findings in ongoing clinical studies
(notwithstanding positive findings in earlier preclinical and
clinical studies); (iii) NKTR-358,NKTR-255 and our other drug
candidates are in various stages of clinical development and the
risk of failure is high and can unexpectedly occur at any stage
prior to regulatory approval; (iv) the timing of the commencement
or end of clinical trials and the availability of clinical data may
be delayed or unsuccessful due to challenges caused by the COVID-19
pandemic, regulatory delays, slower than anticipated patient
enrollment, manufacturing challenges, changing standards of care,
evolving regulatory requirements, clinical trial design, clinical
outcomes, competitive factors, or delay or failure in ultimately
obtaining regulatory approval in one or more important markets; (v)
we may not achieve the expected costs savings we expect from the
restructuring and reorganization, (vi) patents may not issue from
our patent applications for our drug candidates, patents that have
issued may not be enforceable, or additional intellectual property
licenses from third parties may be required; and (vii) certain
other important risks and uncertainties set forth in our Annual
Report on Form 10-K filed with the Securities and Exchange
Commission on March 1, 2022. Any forward-looking
statement made by us in this press release is based only on
information currently available to us and speaks only as of the
date on which it is made. We undertake no obligation to update any
forward-looking statement, whether written or oral, that may be
made from time to time, whether as a result of new information,
future developments or otherwise.
Contact:
Vivian Wu of Nektar
Therapeutics
628-895-0661
NEKTAR
THERAPEUTICS
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
(In
thousands)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
March 31,
2022
|
|
December 31,
2021
|
(1)
|
Current
assets:
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
|
|
|
$
67,993
|
|
$
25,218
|
|
|
Short-term
investments
|
|
|
|
|
|
599,032
|
|
708,737
|
|
|
Accounts
receivable
|
|
|
|
|
|
30,220
|
|
22,492
|
|
|
Inventory
|
|
|
|
|
|
15,379
|
|
15,801
|
|
|
Other current
assets
|
|
|
|
|
|
20,831
|
|
23,333
|
|
|
|
Total current
assets
|
|
|
|
|
|
733,455
|
|
795,581
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term
investments
|
|
|
|
|
|
37,363
|
|
64,828
|
|
Property, plant and
equipment, net
|
|
|
|
|
|
60,980
|
|
60,510
|
|
Operating lease
right-of-use assets
|
|
|
|
|
|
114,296
|
|
117,025
|
|
Goodwill
|
|
|
|
|
|
76,501
|
|
76,501
|
|
Other assets
|
|
|
|
|
|
1,521
|
|
2,744
|
|
|
|
Total assets
|
|
|
|
|
|
$
1,024,116
|
|
$
1,117,189
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
|
|
|
|
12,617
|
|
9,747
|
|
|
Accrued
compensation
|
|
|
|
|
|
22,653
|
|
15,735
|
|
|
Accrued clinical trial
expenses
|
|
|
|
|
|
33,403
|
|
26,809
|
|
|
Other accrued
expenses
|
|
|
|
|
|
17,011
|
|
15,468
|
|
|
Operating lease
liabilities, current portion
|
|
|
|
|
19,597
|
|
17,441
|
|
|
|
Total current
liabilities
|
|
|
|
|
|
105,281
|
|
85,200
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating lease
liabilities, less current portion
|
|
|
|
122,638
|
|
125,736
|
|
Development derivative
liability
|
|
|
|
|
|
-
|
|
27,726
|
|
Liabilities related to
the sales of future royalties, net
|
|
|
|
185,604
|
|
195,427
|
|
Other long-term
liabilities
|
|
|
|
|
|
2,704
|
|
3,592
|
|
|
|
Total
liabilities
|
|
|
|
|
|
416,227
|
|
437,681
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
|
|
|
|
|
|
Preferred
stock
|
|
|
|
|
|
-
|
|
-
|
|
|
Common stock
|
|
|
|
|
|
19
|
|
19
|
|
|
Capital in excess of
par value
|
|
|
|
|
|
3,537,790
|
|
3,516,641
|
|
|
Accumulated other
comprehensive loss
|
|
|
|
|
(6,532)
|
|
(4,157)
|
|
|
Accumulated
deficit
|
|
|
|
|
|
(2,923,388)
|
|
(2,832,995)
|
|
|
|
Total stockholders'
equity
|
|
|
|
|
|
607,889
|
|
679,508
|
|
|
Total liabilities and
stockholders' equity
|
|
|
|
|
$
1,024,116
|
|
$
1,117,189
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The consolidated
balance sheet at December 31, 2021 has been derived from the
audited financial statements at that date but does not include
all
|
|
of the
information and notes required by generally accepted accounting
principles in the United States for complete financial
statements.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NEKTAR
THERAPEUTICS
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
(In thousands, except
per share information)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
March 31,
|
|
|
|
|
|
|
|
|
|
2022
|
|
2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
Product
sales
|
|
|
|
|
|
$
5,688
|
|
$
4,795
|
|
|
Non-cash royalty
revenue related to the sales of future royalties
|
|
|
17,561
|
|
18,798
|
|
|
License, collaboration
and other revenue
|
|
|
|
|
1,573
|
|
54
|
|
Total
revenue
|
|
|
|
|
|
24,822
|
|
23,647
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
|
|
|
Cost of goods
sold
|
|
|
|
|
|
5,315
|
|
5,756
|
|
|
Research and
development
|
|
|
|
|
|
107,253
|
|
95,604
|
|
|
General and
administrative
|
|
|
|
|
|
27,339
|
|
31,679
|
|
|
Restructuring,
impairment and other costs of terminated program
|
|
|
1,475
|
|
-
|
|
Total operating costs
and expenses
|
|
|
|
|
141,382
|
|
133,039
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from
operations
|
|
|
|
|
|
(116,560)
|
|
(109,392)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-operating income
(expense):
|
|
|
|
|
|
|
|
|
|
|
Change in fair value of
development derivative liability
|
|
|
|
33,427
|
|
(1,599)
|
|
|
Non-cash interest
expense on liabilities related to the sales of future
royalties
|
|
(7,529)
|
|
(13,296)
|
|
|
Interest income and
other income (expense), net
|
|
|
|
395
|
|
1,412
|
|
Total non-operating
expense, net
|
|
|
|
|
|
26,293
|
|
(13,483)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss before provision
for income taxes
|
|
|
|
|
(90,267)
|
|
(122,875)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
|
|
|
|
|
126
|
|
92
|
|
Net loss
|
|
|
|
|
|
$
(90,393)
|
|
$
(122,967)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted net
loss per share
|
|
|
|
|
$
(0.49)
|
|
$
(0.68)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding used in computing basic and diluted net loss per
share
|
|
185,848
|
|
181,370
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NEKTAR
THERAPEUTICS
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(In
thousands)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three months ended
March 31,
|
|
|
|
|
|
|
|
|
|
2022
|
|
2021
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
Net loss
|
|
|
|
|
|
$
(90,393)
|
|
$
(122,967)
|
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
|
|
|
Non-cash royalty
revenue related to the sales of future royalties
|
|
|
(17,561)
|
|
(18,798)
|
|
|
Non-cash interest
expense on liabilities related to the sales of future
royalties
|
|
7,529
|
|
13,296
|
|
|
Change in fair value of
development derivative liability
|
|
|
|
(33,427)
|
|
1,599
|
|
|
Non-cash research and
development expense
|
|
|
|
4,951
|
|
2,248
|
|
|
Stock-based
compensation
|
|
|
|
|
|
20,961
|
|
23,898
|
|
|
Depreciation and
amortization
|
|
|
|
|
|
3,730
|
|
3,543
|
|
|
Amortization of
premiums (discounts), net and other non-cash
transactions
|
|
1,276
|
|
2,345
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
|
|
|
(7,728)
|
|
9,733
|
|
|
Inventory
|
|
|
|
|
|
422
|
|
(1,516)
|
|
|
Operating leases,
net
|
|
|
|
|
|
1,787
|
|
1,541
|
|
|
Other
assets
|
|
|
|
|
|
2,864
|
|
6,183
|
|
|
Accounts
payable
|
|
|
|
|
|
2,998
|
|
779
|
|
|
Accrued
compensation
|
|
|
|
|
|
6,918
|
|
8,981
|
|
|
Other accrued
expenses
|
|
|
|
|
|
7,249
|
|
(7,950)
|
|
Net cash used in
operating activities
|
|
|
|
|
(88,424)
|
|
(77,085)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
|
Purchases of
investments
|
|
|
|
|
|
(93,493)
|
|
(295,314)
|
|
|
Maturities of
investments
|
|
|
|
|
|
227,974
|
|
303,612
|
|
|
Sales of
investments
|
|
|
|
|
|
-
|
|
5,036
|
|
|
Purchases of property,
plant and equipment
|
|
|
|
(4,203)
|
|
(2,876)
|
|
Net cash provided by
investing activities
|
|
|
|
|
130,278
|
|
10,458
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
|
Proceeds from shares
issued under equity compensation plans
|
|
|
|
188
|
|
17,106
|
|
|
Cash receipts from
development derivative liability
|
|
|
750
|
|
750
|
|
Net cash provided by
financing activities
|
|
|
|
938
|
|
17,856
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of foreign
exchange rates on cash and cash equivalents
|
|
|
(17)
|
|
(20)
|
|
Net increase (decrease)
in cash and cash equivalents
|
|
|
|
42,775
|
|
(48,791)
|
|
Cash and cash
equivalents at beginning of period
|
|
|
|
25,218
|
|
198,955
|
|
Cash and cash
equivalents at end of period
|
|
|
|
|
$
67,993
|
|
$
150,164
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental
disclosure of cash flow information:
|
|
|
|
|
|
|
|
Operating lease
right-of-use asset recognized in exchange for lease
liabilities
|
|
$
-
|
|
$
1,057
|
|
View original content to download
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SOURCE Nektar Therapeutics