Nektar Therapeutics (NASDAQ:NKTR) Robust Pipeline Of Drugs Offsets Q1 Net Loss Concerns

Nektar Therapeutics (NASDAQ:NKTR)

Nektar Therapeutics (NASDAQ:NKTR) popped up in the market after reporting a first-quarter net loss of $63.9 million, more than triple the net loss of $19.5 million posted last year. The $0.42 a share net loss appears to have met expectations and is seen as one of the reasons why traders did not push the stock lower in the market. Excitement around the company’s pipeline of drugs also appears to have bolstered investor’s sentiments on the stock.

Robust Pipeline of Drugs

Positive Phase 3 results for NKTR-181, a novel treatment for low back-pain, continues to offer price stability for Nektar Therapeutics (NASDAQ:NKTR). The company has also sought to avert investor concerns by reiterating that the Phase 2 study of NKTR-214 is on course to yield positive results.

“I am very pleased with our continued success in advancing the Nektar pipeline, driven by our expanding research in immuno-oncology and immunology that continues to generate highly valuable new clinical candidates,” said chief executive officer Howard W Robin.

With over 10 clinical stage products in the pipeline, the company’s growth prospects remain intact given that most of them are cancer-based immunotherapies, a space that is growing robustly in terms of sales. The company has also partnered or licensed a good number of drugs which means it stands to continue receiving a substantial amount of revenues in royalties going forward.

Q1 Results

Revenue in the quarter came in at $24.7 million compared to $58.9 million in Q1 of 2016. Product sales alone in the quarter came in at $4.8 million compared to $14.1 million as of last year same period. Nektar Therapeutics (NASDAQ:NKTR) has sought to defend itself against the big miss by reiterating that revenues were higher last year because of the $28 million received from AstraZeneca plc. (ADR)(NYSE:AZN) for the sublicensing of MOVENTIG in Europe

Increase in research and development expenses resulted in an increase in operating costs and expenses that came in at $79.2 million compared to $68.4 million as of last year

Nektar Therapeutics (NASDAQ:NKTR) shares appear to be in for an impressive year having already rallied by more than 40% since the start of the year. The stock hit the $18.97 a share mark in Wednesday trading session having rallied by 8.15% on the earnings report.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

About the author: Monica Gray has an undergraduate degree in Accounting and an MBA – earned with Honors. She has six years of experience in the financial markets and has been a securities analyst for the past two years.

Author: Monica Gray

Monica has an undergraduate degree in Accounting and an MBA she earned - with Honors. She has six years of experience in the financial markets and has been an analyst for the past two years.

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