On May 8, 2025 Nektar Therapeutics (Nasdaq: NKTR) reported financial results for the first quarter ended March 31, 2025 (Press release, Nektar Therapeutics, MAY 8, 2025, View Source [SID1234652753]).

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Cash and investments in marketable securities on March 31, 2025 were $220.7 million as compared to $269.1 million on December 31, 2024. Nektar’s cash and marketable securities are expected to support strategic development activities and operations into the fourth quarter of 2026.

"We are on track to report topline data in June from the Phase 2 study of rezpegaldesleukin in atopic dermatitis," said Howard W. Robin, President and CEO of Nektar. "These data will be followed by the topline data from the Phase 2 study of rezpegaldesleukin in patients with alopecia areata in December of this year. The results of both randomized studies will demonstrate the potential of rezpegaldesleukin to provide a new treatment paradigm for patients with these serious dermatological diseases. As a first-in-class T regulatory cell biologic, rezpegaldesleukin is poised to emerge as an important novel mechanism to treat millions of patients with chronic autoimmune disorders."

"We are also on track to complete our IND-enabling work for NKTR-0165, our unique antibody targeting the TNFR2 receptor, that has the potential to be developed as a treatment for multiple sclerosis, ulcerative colitis and vitiligo," continued Robin. "We are targeting the submission of the IND for NKTR-0165 at the end of this year. Additionally, we are making significant progress on our new bispecific antibody, NKTR-0166. This antibody incorporates a TNFR2 epitope with a validated antibody target and is advancing into preclinical studies."

Summary of Financial Results

Revenue in the first quarter of 2025 was $10.5 million as compared to $21.6 million in the first quarter of 2024. Revenue has decreased year over year because we no longer recognize product sales due to the sale of the Huntsville manufacturing facility in December 2024.

Total operating costs and expenses in the first quarter of 2025 were $55.0 million as compared to $57.1 million in the first quarter of 2024. Operating costs and expenses for the first quarter of 2025 decreased as compared to 2024 due to the elimination of cost of goods sold following the sale of the Huntsville manufacturing facility, partially offset by increases in R&D and G&A expenses.

R&D expense in the first quarter of 2025 was $30.5 million as compared to $27.4 million for the first quarter of 2024. R&D expense increased primarily due to an increase in expense for the development of rezpegaldesleukin, partially offset by a decrease in expense for the development of NKTR-255.

G&A expense was $24.3 million in the first quarter of 2025 and $20.1 million in the first quarter of 2024. G&A expense increased due to an increase in legal expenses, partially offset by decreases in facilities and stock-based compensation expenses.

In the first quarter of 2025, we began accounting for our investment in the new portfolio company, Gannet BioChem, under the equity method of accounting which calculates our gain or loss based on the change in our share of Gannet BioChem’s equity each quarter. This resulted in a $4.5 million non-cash loss from the equity method investment.

Net loss for the first quarter of 2025 was $50.9 million or $0.24 basic and diluted loss per share as compared to a net loss of $36.8 million or $0.19 basic and diluted loss per share in the first quarter of 2024. Excluding the $4.5 million non-cash loss from our equity method investment in Gannet BioChem, net loss, on a non-GAAP basis, for the first quarter of 2025 was $46.4 million or $0.22 basic and diluted loss per share.

Recent Business Highlights

● In April 2025, the European Hematological Association (EHA) (Free EHA Whitepaper) selected the abstract submitted by Nektar collaborators at the Fred Hutchinson Cancer Center entitled "Enhanced CAR T-cell Expansion and Durable Complete Responses with NKTR-255 Plus Lisocabtagene Maraleucel in Relapsed/Refractory Large B-cell Lymphoma" for oral presentation at the 30th annual EHA (Free EHA Whitepaper) Congress, being held in Milan, Italy from June 12-15, 2025.

● In February 2025, Nektar announced completion of target enrollment in the REZOLVE-AA 84-patient Phase 2b clinical trial of rezpegaldesleukin in severe-to-very severe alopecia areata.

● In February 2025, Nektar announced a new clinical trial agreement with TrialNet, an international clinical trial network at the forefront of diabetes research, to evaluate rezpegaldesleukin in a Phase 2 study of approximately 70 patients with new onset type 1 diabetes mellitus.

● In February 2025, the FDA granted Fast Track designation for rezpegaldesleukin for the treatment of adult and pediatric patients 12 years of age and older with moderate-to-severe atopic dermatitis whose disease is not adequately controlled with topical prescription therapies or when those therapies are not advisable.

● In January 2025, Nektar announced completion of target enrollment in the REZOLVE-AD 396-patient Phase 2b clinical trial of rezpegaldesleukin in moderate-to-severe atopic dermatitis.

Conference Call to Discuss First Quarter 2025 Financial Results

Nektar management will host a conference call to review the results beginning at 5:00 p.m. Eastern Time/2:00 p.m. Pacific Time on May 8, 2025.

This press release and live audio-only webcast of the conference call can be accessed through a link that is posted on the Home Page and Investors section of the Nektar website: View Source The web broadcast of the conference call will be available for replay through June 8, 2025.

To access the conference call, please pre-register at Nektar Earnings Call Registration. All registrants will receive dial-in information and a PIN allowing them to access the live call.