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Nektar Therapeutics NKTR incurred a first-quarter 2025 adjusted loss of 22 cents per share, wider than the Zacks Consensus Estimate of a loss of 18 cents. In the year-ago quarter, the company had reported a loss of 18 cents per share.
Total revenues in the first quarter decreased 51.4% year over year to $10.5 million. The reported figure also missed the Zacks Consensus Estimate of $18 million. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
The year-over-year revenue decrease was due to the sale of the Huntsville manufacturing facility in December 2024, following which the company no longer records product revenues. Nektar’s top line currently comprises non-cash royalty revenues.
Shares of Nektar declined 3.1% on May 8 due to the weaker-than-expected first-quarter results.
The stock has plunged 33.5% so far this year compared with the industry’s decline of 3.1%.
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NKTR’s Q1 Earnings in Detail
Research and development (R&D) expenses were $30.5 million, up around 11.3% year over year.
General and administrative (G&A) expenses increased around 20.9% year over year to $24.3 million.
As of March 31, 2025, Nektar had cash and cash equivalents and marketable securities worth $220.7 million compared with $269.1 million as of Dec. 31, 2024.
NKTR's Guidance for 2025
Nektar expects its revenues for the remaining three quarters to be similar to the first quarter level, totaling around $40 million for the full year.
R&D costs for 2025 are expected to be between $110 million and $120 million, while G&A expenses are anticipated to be in the $60-$65 million range.
Nektar expects to end 2025 with approximately $100 million in cash and investments, which is likely to fund operations into the fourth quarter of 2026.
NKTR's Key Pipeline Updates
Nektar’s lead pipeline candidate, rezpegaldesleukin (rezpeg), is being developed as a self-administered injection for several autoimmune and inflammatory diseases. The company regained full rights to rezpeg from pharma giant Eli Lilly LLY in April 2023 and took charge of its clinical development.
Rezpeg was earlier developed in collaboration with Lilly for several autoimmune indications. Rezpeg is now a wholly owned asset of Nektar, and the company owes no royalty payments to LLY.
Two separate phase IIb studies are evaluating rezpeg for treating atopic dermatitis and alopecia areata.
In January 2025, Nektar completed enrollment in the phase IIb REZOLVE-AD study evaluating rezpeg in patients with moderate-to-severe atopic dermatitis, also called eczema. Top-line data from this study is expected next month.