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Dec 31, 2024

Nektar Q4 2024 Earnings Report

Nektar reported increased revenue and a return to profitability, supported by a gain from asset sales.

Key Takeaways

Nektar's Q4 2024 revenue was $29.2 million, up from $23.9 million in Q4 2023, driven by product sales and royalty revenue. The company achieved a net income of $7.3 million, compared to a net loss of $42.1 million in the prior year. Operating costs declined due to the sale of its Huntsville manufacturing facility, contributing to improved profitability.

Q4 2024 revenue was $29.2 million, an increase from $23.9 million in Q4 2023.

Net income was $7.3 million, compared to a net loss of $42.1 million in Q4 2023.

Operating expenses decreased significantly due to a $40.4 million gain from the Huntsville facility sale.

Research and development expenses were $28.7 million, remaining stable year-over-year.

Total Revenue
$29.2M
Previous year: $23.9M
+22.1%
EPS
-$0.15
Previous year: -$0.22
-31.8%
R&D Expense
$28.7M
Previous year: $29.9M
-4.0%
Cash and Equivalents
$44.3M
Previous year: $329M
-86.6%
Total Assets
$304M
Previous year: $398M
-23.7%

Nektar

Nektar

Nektar Revenue by Segment

Forward Guidance

Nektar plans to continue advancing its immunology pipeline, with key data milestones expected in 2025.

Positive Outlook

  • Completion of Phase 2b trials for rezpegaldesleukin in atopic dermatitis and alopecia areata.
  • IND submission for NKTR-0165 planned for the second half of 2025.
  • Strong cash position of $269 million to fund operations through Q4 2026.
  • Partnership with TrialNet to evaluate rezpegaldesleukin in Type 1 diabetes.
  • Continued progress on NKTR-255 in combination with CAR-T therapy.

Challenges Ahead

  • Ongoing restructuring and impairment costs may impact near-term profitability.
  • Dependence on milestone and royalty revenue for financial sustainability.
  • Regulatory risks associated with advancing multiple clinical-stage assets.
  • Market competition in immunology and oncology may limit commercial potential.
  • R&D expenses expected to remain high due to multiple ongoing trials.