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Nektar Therapeutics (NKTR) 7 Nov 24 2024 Q3 Earnings call transcript

AInvestSaturday, Nov 9, 2024 9:42 am ET
1min read

Nektar Therapeutics held its third quarter 2024 financial results conference call, where executives provided updates on the company's pipeline and financial performance. The call highlighted several key themes, including progress on Phase II studies for the company's lead asset, REZPEG, and the sale of its commercial PEGylation reagent manufacturing facility.

Pipeline Progress and Future Outlook

Nektar's pipeline is focused on immunology and inflammation, with a particular emphasis on REZPEG, a drug candidate designed to directly expand functional T-reg cells and engage multiple immunoregulatory pathways in patients with autoimmune disorders. Enrollment in Phase II studies for REZPEG in atopic dermatitis and alopecia areata is on track, with top line data expected in the first and second half of 2025, respectively. The company's other pipeline programs, including NKTR-0165 and NKTR-422, are also progressing, with preclinical data showing promising results.

Financial Performance and Future Prospects

Nektar reported a net loss of $37 million for the third quarter of 2024. However, the company's financial position is expected to be strengthened by the sale of its commercial PEGylation reagent manufacturing facility to Ampersand Capital Partners. The deal, worth $90 million, includes $70 million in cash and $20 million in equity ownership in the new portfolio company. This strategic divestiture is expected to streamline Nektar's operations and extend its cash runway into the fourth quarter of 2026.

Investor and Analyst Questions

During the Q&A session, analysts asked about the progress of REZPEG studies, the potential for extrapolating efficacy across patient populations, and the timeline for data readouts. The company also addressed ongoing litigation against UiPath and provided details on the Phase IIb atopic dermatitis trial, including patient enrollment and topical steroid use.

Conclusion

Nektar Therapeutics' earnings call provided a comprehensive overview of the company's pipeline progress, financial performance, and future outlook. The company's focus on immunology and inflammation, particularly with REZPEG, positions it well for potential growth in the underserved biologic market for autoimmune disorders. The sale of its commercial PEGylation reagent manufacturing facility is expected to bolster Nektar's financial position and extend its runway into 2026. With top line data readouts for REZPEG studies in atopic dermatitis and alopecia areata expected in the first and second half of 2025, respectively, investors will be closely watching for updates on the company's pipeline and financial performance.

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