Markets

Nektar (NKTR) Reports Narrower-than-Expected Q1 Loss

Nektar TherapeuticsNKTR reported a loss of 14 cents per share in the first quarter of 2015, narrower than the Zacks Consensus Estimate of a loss of 20 cents. In the first quarter of 2015, the company had posted earnings of 26 cents.

Nektar Therapeutics (NKTR) Street Actual & Estimate EPS - Last 5 Quarters | FindTheCompany

Quarterly revenues plunged 45.9% to $58.9 million. The top line included $28 million received from AstraZeneca plc AZN in April for sublicensing Moventig to ProStrakan in Europe. Revenues were, however, above the Zacks Consensus Estimate of $45 million.

Quarter in Detail

Total revenue comprised net product sales, royalty revenues, non-cash royalty revenues, license, collaboration and other revenues.

Product sales surged 76.8% to almost $14.1 million.

License, collaboration and other revenues plummeted 64.7% to $34.2 million. Nektar has a license agreement with AstraZeneca for Movantik (EU trade name: Moventig) and a collaboration agreement with Baxalta Inc. BXLT for Adynovate.

Research and development (R&D) expenses were $49.3 million primarily due to phase III studies on NKTR-181 and initiation of a phase I/II study on NKTR-214.

General and administrative (G&A) expenses were down 0.7% to $10.2 million.

2016 Outlook

Nektar reiterated its financial guidance for 2016. The company continues to expect total revenue in the range of $155-$165 million. Upfront and other milestone payments under the license agreement with AstraZeneca are projected to be approximately $40 million.

It expects royalty revenues from Movantik's sale of roughly $22 million, while non-cash royalty revenues are anticipated to be around $24 million.

Pipeline Update

Nektar is currently enrolling patients in the phase III SUMMIT-07 efficacy study on NKTR-181 for chronic low back pain. Top-line data from the study are expected in the first quarter of 2017.

In addition, the company is evaluating NKTR-214 in a phase I/II study for the treatment of solid tumors. Top-line data from the study are expected in the second half of 2016.

Our Take

Nektar's first-quarter results were impressive, with the company reporting a narrower-than-expected loss and revenues surpassing expectations. We are further encouraged by Nektar's collaboration and license agreements, which should continue to drive top-line growth at the company.

Going ahead, we expect investor focus to remain on further pipeline updates by the company.

Nektar currently carries a Zacks Rank #4 (Sell). OncoMed Pharmaceuticals, Inc. OMED , with a Zacks Rank #1 (Strong Buy), is a better-ranked stock in the health care sector.

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 >>

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

ASTRAZENECA PLC (AZN): Free Stock Analysis Report

NEKTAR THERAP (NKTR): Free Stock Analysis Report

ONCOMED PHARMA (OMED): Free Stock Analysis Report

BAXALTA INC (BXLT): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

AZN NKTR

Other Topics

Stocks