) reported a loss of 37 cents per share in the second quarter of
2013, wider than the year-ago loss of 30 cents but narrower than
the Zacks Consensus Estimate of a loss of 44 cents. The wider
year-over-year loss during the quarter was primarily due to
However, Nektar's share price was up significantly following the
second quarter 2013 results based on strong top-line results.
Quarter in Details
Total revenues in the reported quarter jumped 43% to $33.9
million. The increase in quarterly revenues was primarily due to
a $10.0 million milestone received from
) for the initiation of phase III studies on Amikacin Inhale.
Second quarter revenues were also benefited from higher product
sales. Revenues were well above the Zacks Consensus Estimate of
Amikacin Inhale is being developed for the treatment of
gram-negative bacterial pneumonias in ventilated patients.
Results from phase III studies are expected by the first half of
Total revenues comprised net product revenues, royalty revenues,
non-cash royalty revenues, license and collaboration revenues and
Nektar's net product revenues of approximately $10.3 million were
up 6.5% during the reported quarter.
Nektar's royalty revenues decreased 21% to $0.4 million during
the quarter. The company's license, collaboration and other
revenues however increased 89.2% to $19.4 million in the reported
quarter primarily due to the milestone received from Bayer.
Research and development (R&D) expenses were up 57.3% to
$52.2 million in the second quarter of 2013. R&D expenses
during the quarter increased primarily due to higher clinical
expenses related to its pipeline.
The company recently completed the enrolment process for the
phase III BEACON study on its metastatic breast cancer candidate
NKTR-102 (etirinotecan pegol). Nektar Therapeutics plans to
conduct an interim futility analysis on the phase III study at
the beginning of 2014 and expects top-line survival data by the
end of that year.
Nektar's general and administrative (G&A) expenses decreased
10.1% to $9.2 million during the quarter.
Apart from disclosing its financial results, Nektar maintained
its guidance for 2013. The company still expects total revenues
in the range of $200-$210 million, including potential milestone
payments of $95 million. The revenue guidance also includes $20
million of non-cash royalty revenues in relation to Cimzia and
Nektar also reiterated its R&D expenses for 2013 in the range
of $200 million to $220 million. Nektar's G&A expenses for
2013 are also maintained in the range of $42-$44 million.
The company's second-quarter 2013 results were encouraging. We
are also impressed with the pipeline progress at Nektar. We
expect investor focus to stay on the company's pipeline going
Nektar, a biopharma company, currently carries a Zacks Rank #3
(Hold). However, among other biopharma stocks,
Biogen Idec Inc.
) currently looks better positioned with a Zacks Rank #1 (Strong
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