Nektar Therapeutics NKTR incurred an adjusted loss per share of 15 cents in the fourth quarter of 2024, wider than the Zacks Consensus Estimate of a loss of 13 cents. In the year-ago quarter, the company had incurred a loss of 22 cents per share.
See the Zacks Earnings Calendar to stay ahead of market-making news.
Total revenues in the fourth quarter increased 22.2% year over year to $29.2 million. The reported figure however missed the Zacks Consensus Estimate of $39 million.
In the past year, shares of Nektar have lost 4.7% compared with the industry’s decline of 8.7%.
Zacks Investment Research
Image Source: Zacks Investment Research
More on NKTR's Q4 Results
In the fourth quarter, product sales increased around 134.7% year over year to $12.9 million. Product sales beat the Zacks Consensus Estimate of $9.8 million as well as our model estimate of $10.4 million.
Non-cash royalty revenues were $16.2 million, down around 10.5% from the year-ago quarter. However, the reported figure beat the Zacks Consensus Estimate of $15.2 million as well as our model estimate of $13.7 million.
Research and development (R&D) expenses were $28.7 million, down around 4% year over year.
General and administrative (G&A) expenses declined 1.2% year over year to $17.1 million.
NKTR's Full-Year Results
For 2024, Nektar generated revenues of $98.4 million, an increase of 9.2% year over year.
For the same period, the company reported a loss of 58 cents per share, narrower than the loss of $1.45 reported in the year-ago period.
NKTR's Key Pipeline Updates
Nektar’s lead pipeline candidate, rezpegaldesleukin (rezpeg), is being developed as a self-administered injection for several autoimmune and inflammatory diseases. The company regained full rights to rezpeg from pharma giant, Eli Lily LLY in April 2023 and took charge of its clinical development.
Rezpeg was earlier developed in collaboration with Lilly for several autoimmune indications. Rezpeg is now a wholly owned asset of Nektar and the company owes no royalty payments to LLY.
Two separate phase IIb studies are evaluating rezpeg for treating atopic dermatitis and alopecia areata.
Powered by Money.com - Yahoo may earn commission from the links above.
In January 2025, Nektar completed the enrollment in the phase IIb REZOLVE-AD study evaluating rezpeg in patients with moderate-to-severe atopic dermatitis, also called eczema. Top-line data from this study is expected in the second quarter of 2025.
In February 2025, the company completed enrollment in the phase IIb REZOLVE-AA study evaluating rezpeg in patients with severe-to-very severe alopecia areata. Top-line data from this study is expected in the fourth quarter of 2025.
Also, during the same month, NKTR entered into a new clinical trial agreement with TrialNet to evaluate rezpeg in a phase II study in patients with new-onset type 1 diabetes mellitus.
Per management, 2025 is likely to be a catalyst year for rezpeg, with two valuable data readouts expected later in the year.
The encouraging progress with rezpeg might have impressed investors and resulted in the stock rising 7.2% on March 12 despite the lukewarm results.
Nektar has two TNFR2 antibody and bispecific programs, NKTR-0165 and NKTR-0166, in its pre-clinical pipeline. The company plans to submit an investigational new drug application to begin clinical development of NKTR-0165 in the second half of 2025.
NKTR's Guidance for 2025
Nektar expects its revenues for the full year to be in the range of $40-$50 million in 2025, which includes primarily non-cash royalties.
Following the sale of the Huntsville manufacturing facility in December 2024, the company will no longer record product revenues and cost of goods sold. In November 2024, Nektar signed a definitive agreement with Ampersand Capital Partners to sell its commercial PEGylation Reagent manufacturing business in Huntsville, AL, for $90 million.
R&D cost for 2025 is expected between $110 million and $120 million, while G&A expenses are anticipated to be in the $60-$65 million range.
Nektar expects to end 2025 with approximately $100 million in cash and investments, which is likely to fund operations into the fourth quarter of 2026.
Nektar Therapeutics Price, Consensus and EPS Surprise
Nektar Therapeutics Price, Consensus and EPS Surprise
Some other top-ranked stocks in the biotech sector are Jazz Pharmaceuticals plc JAZZ and ANI Pharmaceuticals, Inc. ANIP, each carrying a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 60 days, estimates for Jazz’s earnings per share have increased from $22.06 to $23.10 for 2025. During the same time, earnings per share have increased from $23.13 to $23.51 for 2026. In the past year, shares of JAZZ have rallied 13.4%.
JAZZ’s earnings beat estimates in three of the trailing four quarters while missing the same on the remaining occasion, the average surprise being 3.20%.
In the past 60 days, estimates for ANI Pharmaceuticals’ earnings per share have increased from $5.54 to $6.31 for 2025. During the same time, earnings per share have increased from $6.75 to $6.90 for 2026. In the past year, shares of ANIP have declined 4.2%.
ANIP’s earnings beat estimates in each of the trailing four quarters, the average surprise being 17.32%.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
