SAN FRANCISCO, Aug. 8, 2017 /PRNewswire/ -- Nektar
Therapeutics (Nasdaq: NKTR) today reported its financial results for the second quarter ended June 30, 2017.
Cash and investments in marketable securities at June 30, 2017 were $310.7 million as compared
to $389.1 million at December 31, 2016. The cash balance does not include the $150
million upfront payment expected from Nektar's recently announced collaboration with Eli Lilly & Company for the
development and commercialization of NKTR-358.
"Nektar has successfully achieved a number of important milestones in 2017," said Howard W.
Robin, President and CEO of Nektar. "In July, we announced positive results from the human abuse potential study of
NKTR-181, which followed the positive Phase 3 efficacy data earlier in the year. The body of data for NKTR-181 shows that
it could be a transformational pain medicine for the treatment of chronic pain and be a key building block in the nation's fight
against the opioid abuse epidemic. Our new collaboration with Lilly for NKTR-358 enables the broad development of this
first-in-class resolution therapeutic in multiple autoimmune conditions. Finally, in immuno-oncology, we are pleased to announce
that we began dosing patients in the expansion stage of the PIVOT study of NKTR-214 with Bristol's OPDIVO, which will enroll up
to 260 patients in eight target cancer indications."
Revenue in the second quarter of 2017 was $34.6 million as compared to $32.8 million in the second quarter
of 2016. Year-to-date revenue for 2017 was $59.3 million as compared to $91.6 million in the first half of 2016.
Revenue in the first half of 2016 was higher primarily because of the recognition of $28.0
million received from AstraZeneca for the sublicense of MOVENTIG® to Kirin in Europe.
Total operating costs and expenses in the second quarter of 2017 were $85.2 million as compared
to $71.1 million in the second quarter of 2016. Total operating costs and expenses in the first
half of 2017 were $164.4 million as compared to $139.5 million in the
first half of 2016. Total operating costs and expenses increased primarily because of research and development (R&D) expense,
which included the completion of Phase 3 clinical studies for NKTR-181.
R&D expense in the second quarter of 2017 was $60.3 million as compared to $52.4 million in the second quarter of 2016. For the first half of 2017, R&D expense was $121.3 million as compared to $101.6 million in the first half of 2016.
R&D expense was higher in the second quarter and first half of 2017 as compared to the same periods in 2016 and
includes increased expenses for our pipeline programs, including clinical development of NKTR-214 and NKTR-358 and preclinical
activities for NKTR-262 and NKTR-255.
General and administrative (G&A) expense was $16.0 million in the second quarter of 2017 as
compared to $11.0 million in the second quarter of 2016. Q2 2017 G&A expense
includes a $3.3 million charge for a litigation settlement related to a cross-license
agreement. G&A expense in the first half of 2017 was $28.0 million as compared to
$21.3 million in the first half of 2016.
Net loss in the second quarter of 2017 was $59.9 million or $0.39
loss per share as compared to a net loss of $48.6 million or $0.36
loss per share in the second quarter of 2016. Net loss was higher in Q2 2017 versus Q2 2016 primarily as a result of the
litigation settlement expense and the increased R&D expense described above. Net loss in the first half of 2017 was
$123.7 million or $0.80 loss per share as compared to a net loss of
$68.1 million or $0.50 loss per share in the first half of 2016.
The company also announced the following upcoming presentation:
ESMO 2017 Congress, Madrid, Spain:
- Poster 1212TiP: " PIVOT-02: A Phase 1/2, Open-label Multicenter, Dose Escalation and Dose Expansion Study of
NKTR-214 and Nivolumab in Patients with Select Locally Advanced or Metastatic Solid Tumor Malignancies.", Diab, A., et
al.
-
- Date: September 9, 2017, 13:15 - 14:15 p.m. Central European Summer Time
Conference Call to Discuss Second Quarter 2017 Financial Results
Nektar management will host a conference call to review the results beginning at 5:00 p.m. Eastern Time/2:00 p.m.
Pacific Time today, Tuesday, August 8, 2017.
This press release and a live audio-only Webcast of the conference call can be accessed through a link that is posted on the
home page and Investors section of the Nektar website: http://www.nektar.com. The web broadcast of the conference call will be available for replay through Friday,
September 8, 2017.
To access the conference call, follow these instructions:
Dial: (877) 881.2183 (U.S.); (970) 315.0453 (international)
Passcode: 62434800 (Nektar Therapeutics is the host)
In the event that any non-GAAP financial measure is discussed on the conference call that is not described in the press
release, or explained on the conference call, related information will be made available on the Investors page at
the Nektar website as soon as practical after the conclusion of the conference call.
About Nektar
Nektar Therapeutics is a research-based biopharmaceutical company whose mission is to discover and develop innovative
medicines to address the unmet medical needs of patients. Our R&D pipeline of new investigational medicines includes
treatments for cancer, auto-immune disease and chronic pain. We leverage Nektar's proprietary and proven chemistry platform in
the discovery and design of our new therapeutic candidates. Nektar is headquartered in San Francisco, California, with
additional operations in Huntsville, Alabama and Hyderabad, India. Further information about the company and
its drug development programs and capabilities may be found online at http://www.nektar.com.
Cautionary Note Regarding Forward-Looking Statements
This press release contains uncertain or forward-looking statements which can be identified by words such as: "could,"
"plan," "expect," "should," "may," "will" and similar references to future periods. Examples of forward-looking statements
include, among others, statements we make regarding the potential therapeutic benefits of and future development plans for our
products (including NKTR-181, NKTR-358, and NKTR-214), the potential impact of NKTR-181 with respect to the opioid
abuse epidemic, and the anticipated indications for future clinical trials. Forward-looking statements are neither
historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and
assumptions and are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many
of which are outside of our control. Our actual results may differ materially from those indicated in the forward-looking
statements and you should not rely on such statements. Important factors that could cause our actual results to differ materially
from those indicated in the forward-looking statements include: (i) clinical study outcomes remain very unpredictable and it is
possible that a clinical study could fail; (ii) the regulatory pathway to review and approve pharmaceutical products is subject
to substantial uncertainty; (iii) regulations concerning access to opioid-based pharmaceuticals are strict and there is no
guarantee which scheduling category will apply to NKTR-181 if regulatory approval is achieved; (iv) patents may not issue from
our patent applications for our drug candidates, patents that have issued may not be enforceable, or additional intellectual
property licenses from third parties may be required; and (v) certain other important risks and uncertainties set forth in our
Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on May 10, 2017. Any
forward-looking statement made by us in this press release is based only on information currently available to us and speaks only
as of the date on which it is made. We undertake no obligation to update any forward-looking statement.
Contact:
For Investors:
Jennifer Ruddock of Nektar Therapeutics
415-482-5585
Jodi Sievers of Nektar Therapeutics
415-482-5593
NEKTAR THERAPEUTICS
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(In thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
ASSETS
|
|
June 30, 2017
|
|
December 31, 2016
|
(1)
|
Current assets:
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$ 16,149
|
|
$
59,640
|
|
|
Short-term investments
|
|
249,398
|
|
329,462
|
|
|
Accounts receivable, net
|
|
4,114
|
|
15,678
|
|
|
Inventory
|
|
11,008
|
|
11,109
|
|
|
Other current assets
|
|
7,496
|
|
10,063
|
|
|
|
Total current assets
|
|
288,165
|
|
425,952
|
|
|
|
|
|
|
|
|
|
Long-term investments
|
|
45,160
|
|
-
|
|
Property, plant and equipment, net
|
|
64,929
|
|
65,601
|
|
Goodwill
|
|
76,501
|
|
76,501
|
|
Other assets
|
|
1,104
|
|
817
|
|
|
|
Total assets
|
|
$ 475,859
|
|
$
568,871
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
Accounts payable
|
|
$ 6,241
|
|
$
2,816
|
|
|
Accrued compensation
|
|
14,346
|
|
18,280
|
|
|
Accrued clinical trial expenses
|
|
6,683
|
|
7,958
|
|
|
Other accrued expenses
|
|
6,683
|
|
4,711
|
|
|
Interest payable
|
|
4,144
|
|
4,198
|
|
|
Capital lease obligations, current portion
|
|
2,706
|
|
2,908
|
|
|
Liability related to refundable upfront payment
|
|
12,500
|
|
12,500
|
|
|
Deferred revenue, current portion
|
|
13,373
|
|
14,352
|
|
|
Other current liabilities
|
|
5,937
|
|
4,499
|
|
|
|
Total current liabilities
|
|
72,613
|
|
72,222
|
|
|
|
|
|
|
|
|
|
Senior secured notes, net
|
|
244,336
|
|
243,464
|
|
Capital lease obligations, less current portion
|
|
1,056
|
|
2,223
|
|
Liability related to the sale of future royalties, net
|
|
101,897
|
|
105,950
|
|
Deferred revenue, less current portion
|
|
48,979
|
|
51,887
|
|
Other long-term liabilities
|
|
3,592
|
|
5,000
|
|
|
|
Total liabilities
|
|
472,473
|
|
480,746
|
|
|
|
|
|
|
|
|
|
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity:
|
|
|
|
|
|
|
Preferred stock
|
|
-
|
|
-
|
|
|
Common stock
|
|
15
|
|
15
|
|
|
Capital in excess of par value
|
|
2,150,019
|
|
2,111,483
|
|
|
Accumulated other comprehensive loss
|
|
(1,662)
|
|
(2,363)
|
|
|
Accumulated deficit
|
|
(2,144,986)
|
|
(2,021,010)
|
|
|
|
Total stockholders' equity
|
|
3,386
|
|
88,125
|
|
|
Total liabilities and stockholders' equity
|
|
$ 475,859
|
|
$
568,871
|
|
|
|
(1)
|
The consolidated balance sheet at December 31, 2016 has been derived from
the audited financial statements at that date but does not include all of the
information and notes required by generally accepted accounting principles in the United States for complete financial
statements.
|
NEKTAR THERAPEUTICS
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
(In thousands, except per share information)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
|
Product sales
|
|
$ 15,693
|
|
$
12,867
|
|
$ 20,449
|
|
$ 26,966
|
Royalty revenue
|
|
7,434
|
|
3,516
|
|
14,651
|
|
7,576
|
Non-cash royalty revenue related to sale of future
royalties
|
|
6,638
|
|
8,115
|
|
13,301
|
|
14,650
|
License, collaboration and other revenue
|
|
4,824
|
|
8,270
|
|
10,916
|
|
42,457
|
Total revenue
|
|
34,589
|
|
32,768
|
|
59,317
|
|
91,649
|
|
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses:
|
|
|
|
|
|
|
|
|
Cost of goods sold
|
|
8,989
|
|
7,708
|
|
15,120
|
|
16,578
|
Research and development
|
|
60,260
|
|
52,350
|
|
121,318
|
|
101,618
|
General and administrative
|
|
15,996
|
|
11,035
|
|
27,972
|
|
21,262
|
Total operating costs and expenses
|
|
85,245
|
|
71,093
|
|
164,410
|
|
139,458
|
|
|
|
|
|
|
|
|
|
|
|
Loss from operations
|
|
(50,656)
|
|
(38,325)
|
|
(105,093)
|
|
(47,809)
|
|
|
|
|
|
|
|
|
|
|
|
Non-operating income (expense):
|
|
|
|
|
|
|
|
|
Interest expense
|
|
(5,510)
|
|
(5,627)
|
|
(10,912)
|
|
(11,304)
|
Non-cash interest expense on liability related to sale of
future royalties
|
|
(4,512)
|
|
(4,982)
|
|
(9,064)
|
|
(10,027)
|
Interest income and other income (expense), net
|
|
906
|
|
458
|
|
1,564
|
|
1,333
|
Total non-operating expense, net
|
|
(9,116)
|
|
(10,151)
|
|
(18,412)
|
|
(19,998)
|
|
|
|
|
|
|
|
|
|
|
|
Loss before provision for income taxes
|
|
(59,772)
|
|
(48,476)
|
|
(123,505)
|
|
(67,807)
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes
|
|
99
|
|
127
|
|
232
|
|
294
|
Net loss
|
|
$ (59,871)
|
|
$
(48,603)
|
|
$ (123,737)
|
|
$ (68,101)
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted net loss per share
|
|
$ (0.39)
|
|
$
(0.36)
|
|
$ (0.80)
|
|
$ (0.50)
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding used in computing basic and diluted net
loss per share
|
|
155,352
|
|
136,350
|
|
154,514
|
|
136,072
|
NEKTAR THERAPEUTICS
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(In thousands)
|
(Unaudited)
|
|
|
|
Six Months Ended June 30,
|
|
|
|
2017
|
|
2016
|
Cash flows from operating activities:
|
|
|
|
|
Net loss
|
|
$
(123,737)
|
|
$ (68,101)
|
Adjustments to reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
Non-cash royalty revenue related to sale of future royalties
|
|
(13,301)
|
|
(14,650)
|
Non-cash interest expense on liability related to sale of future
royalties
|
|
9,064
|
|
10,027
|
Stock-based compensation
|
|
16,283
|
|
12,627
|
Depreciation and amortization
|
|
8,287
|
|
7,634
|
Other non-cash transactions
|
|
(1,089)
|
|
(1,260)
|
Changes in operating assets and liabilities:
|
|
|
|
|
Accounts receivable, net
|
|
11,564
|
|
(7,830)
|
Inventory
|
|
101
|
|
1,084
|
Other assets
|
|
2,280
|
|
4,637
|
Accounts payable
|
|
3,221
|
|
17
|
Accrued compensation
|
|
(3,934)
|
|
6,465
|
Accrued clinical trial expenses
|
|
(1,275)
|
|
5,250
|
Other accrued expenses
|
|
2,388
|
|
2,831
|
Interest payable
|
|
(54)
|
|
(54)
|
Liability related to refundable upfront payment
|
|
-
|
|
12,500
|
Deferred revenue
|
|
(3,887)
|
|
(7,704)
|
Other liabilities
|
|
1,000
|
|
(725)
|
Net cash used in operating activities
|
|
(93,089)
|
|
(37,252)
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
Purchases of investments
|
|
(121,135)
|
|
(72,806)
|
Maturities of investments
|
|
147,558
|
|
107,363
|
Sales of investments
|
|
8,823
|
|
-
|
Purchases of property, plant and equipment
|
|
(6,344)
|
|
(3,234)
|
Net cash provided by investing activities
|
|
28,902
|
|
31,323
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
Payment of capital lease obligations
|
|
(1,369)
|
|
(3,517)
|
Proceeds from shares issued under equity compensation plans
|
|
22,016
|
|
9,643
|
Net cash provided by financing activities
|
|
20,647
|
|
6,126
|
|
|
|
|
|
|
Effect of exchange rates on cash and cash equivalents
|
|
49
|
|
(91)
|
Net (decrease) increase in cash and cash equivalents
|
|
(43,491)
|
|
106
|
Cash and cash equivalents at beginning of period
|
|
59,640
|
|
55,570
|
Cash and cash equivalents at end of period
|
|
$
16,149
|
|
$ 55,676
|
|
|
|
|
|
|
Supplemental disclosure of cash flow information:
|
|
|
|
|
Cash paid for interest
|
|
$
10,010
|
|
$ 10,448
|
View original content:http://www.prnewswire.com/news-releases/nektar-therapeutics-reports-financial-results-for-the-second-quarter-of-2017-300501473.html
SOURCE Nektar Therapeutics