Nektar Therapeutics (NKTR) stock rallied, reaching all-time high with positive results in every aspect of the firm’s fundamentals from reported finances, to reported products’ results, etc., Cash and investments in marketable securities at September 30, 2017, were $412.2 million as compared to $389.1 million at December 31, 2016. The cash includes the $150.0 million upfront payment by Eli Lilly & Company for the development and commercialization of NKTR-358.
As Howard W. Robin, President and CEO of Nektar stated, the firm’s immuno-oncology portfolio is still expanding with novel drug candidates added to its pipeline.
NKTR-214 is the first immuno-oncology (I-O) product to increase tumor-infiltrating lymphocytes (TILs) into the malignant cells and also increase PD-1 expression on human immune cells. The increase in the checkpoint protein expression uniquely complements checkpoint inhibitors and other anti-cancer mechanisms. Indeed, this action helps improve the efficacy of checkpoint inhibiting drugs such as the approved Keytruda and Opdivo and others in numerous cancer patients whose cancers do not express PD-1 – those who receive limited benefit from treatment with these checkpoint inhibitors.
NKTR-214 capability to help patients’ cancers respond to the checkpoint inhibitors has, indeed, a significant magnitude in cancer immunotherapy.
An important upcoming event is Nektar’s planning to submit an NDA for NKTR-181 by April 2018 with data package comprising over 2,100 patients and healthy volunteers.
Of the Financials:
– Revenue in the third quarter of 2017 was $152.9 million as compared to $36.3 million in the third quarter of 2016.
– Year-to-date revenue for 2017 was $212.2 million as compared to $128.0 million in the first nine months of 2016.
Revenue Included recognition of $127.6 million of the $150.0 million upfront payment from Eli Lilly & Company for the development and commercialization of NKTR-358.
– Total operating costs and expenses in the third quarter of 2017 were $83.4 million as compared to $69.2 million in the third quarter of 2016. Year-to-date total operating costs and expenses in 2017 were $247.9 million as compared to $208.7 million for the same period in 2016.
Total operating costs and expenses increased primarily as a result of increased research and development (R&D) expense.
– Research and development expenses in the third quarter of 2017were $65.7 million as compared to $52.0 million in the third quarter of 2016. Year-to-date R&D expense for 2017 was $187.0 million as compared to $153.6 million for the same period in 2016.
R&D expense was higher in the third quarter and first nine months of 2017 as compared to the same periods in 2016 primarily because of expenses for our pipeline programs, including Phase 3 clinical studies for NKTR-181, Phase 1/2 clinical studies of NKTR-214 and NKTR-358 and IND-enabling activities for NKTR-262 and NKTR-255.
– General and administrative expenses were $12.1 million in the third quarter of 2017 as compared to $10.3 million in the third quarter of 2016.
G&A expenses in the first nine months of 2017 were $40.0 million as compared to $31.5 million for the same period in 2016. The G&A expense in the first nine months of 2017 include a $3.3 million charge for a litigation settlement related to a cross-license agreement.
– Net income in the third quarter of 2017:
Net income was $60.9 million or $0.39 basic income per share as compared to net loss of $43.2 million or $0.32 basic loss per share in the third quarter of 2016. Net loss in the first nine months of 2017 was $62.9 million or $0.41 basic loss per share as compared to $111.3 million or $0.82 basic loss per share in the first nine months of 2016
Nektar Upcoming Presentations
- Society for Immunotherapy in Cancer (SITC) 32ndAnnual Meeting, National Harbor, MD.
- American College of Neuropsychopharmacology 56thAnnual Meeting, Palm Springs, CA.
To read the details about these upcoming presentations please go to the firm’s press release as posted on the firm’s website at www.nektar.com/
The best is yet to come from Nektar.
Prohost added NKTR to its portfolio on 11/27/14 at $12.84, the stock is trading in premarket today at around $29.35 up $2.51. Yesterday the stock gained $2.56. So adding both trading days’ gains, the stock has gained around $6.00
Congratulations to the firm and to its shareholders. Prohost raises its target for 2017 from $30 to $38. Prohost target for 2018 remains $50.
Have a Good Day.
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