Nektar Therapeutics NKTR grappled with a loss per share of 25 cents in the second quarter of 2024, falling short of the Zacks Consensus Estimate of a loss of 21 cents.
Stripping away the influence of non-cash restructuring and impairment charges, the enterprise disclosed an adjusted loss of 19 cents per share in the second quarter of 2024, contrasting with an adjusted loss of 18 cents per share during the corresponding period of the previous year.
Revenue figures delivered a more positive narrative, tallying at $23.5 million in the second quarter, reflecting a 14.6% upsurge year over year. Revenue figures even outpaced the Zacks Consensus Estimate of $17 million.
Delving into the Quarter’s Performance
The second quarter witnessed a robust uptick in product sales, soaring by approximately 42.5% year over year to $6.6 million, surpassing projections set at $4.6 million. Meanwhile, non-cash royalty revenues amounted to $16.8 million, marking an increment of approximately 6.1% from the year preceding the current quarter and outperforming projections slated at $14.8 million.
Research and development (R&D) expenses remained relatively stagnant year over year at $29.7 million. On the other hand, general and administrative (G&A) expenses ballooned by 14.5% year over year to $20.5 million.
The aftermath of the mixed results saw Nektar’s stocks plunging by 4.9% in after-hours trading on Aug 8.
Although the company’s shares have surged by 114.1% year to date, contrasting sharply with the industry’s decline of 5.2%, the recent earnings report paints a nuanced picture of its financial health.
Exploration of Nektar’s Pipelines
Nektar’s primary pipeline contender is rezpegaldesleukin (rezpeg), progressing through development as a self-administered injection for various autoimmune and inflammatory diseases. In April 2023, Nektar regained complete ownership of rezpeg from Eli Lily LLY and assumed responsibility for its clinical advancement.
Previously a collaborative effort between Nektar and Lilly for several autoimmune indications, rezpeg currently stands as an exclusive asset of Nektar with no royalty obligations to LLY.
An ongoing phase IIb study is examining rezpeg’s efficacy in patients with moderate-to-severe atopic dermatitis, with preliminary findings slated for release in the first half of 2025. Additionally, a separate phase IIb study evaluating rezpeg’s impact on patients with severe-to-very severe alopecia areata is scheduled to unveil its top-line data in mid-2025.
Performance of Nektar Therapeutics: Price, Consensus, and EPS Surprise
Nektar Therapeutics price-consensus-eps-surprise-chart | Nektar Therapeutics Quote
Evaluating Zacks Rank & Promising Stocks
Nektar currently maintains a Zacks Rank #3 (Hold).
Within the biotech domain, noteworthy options include Exact Sciences Corporation and Entrada Therapeutics, Inc. TRDA, both presently endorsed with a Zacks Rank #1 (Strong Buy).
Recent estimations reveal a narrowed 2024 loss per share for Exact Sciences from $1.09 to $1.00. Correspondingly, loss per share projections for 2025 have been revised from 21 cents to 8 cents. Despite a 22.6% drop in shares year to date, EXAS managed to surpass earnings estimates in three out of the last four quarters.
In the biotech landscape, Entrada Therapeutics witnessed a revision in its 2024 loss per share forecasts from 14 cents to 13 cents. Likewise, estimates for 2025 losses have shifted from $3.44 to $3.21. TRDA, despite a 4.3% downturn in shares year to date, demonstrated the ability to beat earnings projections in half of the last four quarters.
