Nektar Therapeutics Q4 2024 Earnings Conference Call: Key Insights
On March 12, 2025, Nektar Therapeutics (NASDAQ: NKTR) held its Q4 2024 earnings conference call. The call was led by Vivian Wu, Investor Relations, and featured Howard Robin, President & CEO; Brian Kotzin, Interim Chief Medical Officer; Jonathan Zalevsky, Chief Research & Development Officer; and Sandra Gardiner, Chief Financial Officer. Participating analysts included Yasmeen Rahimi from Piper Sandler, Julian Harrison from BTIG, Jay Olson from Oppenheimer, Roger Song from Jefferies, and Mayank Mamtani from B. Riley Securities, Arthur He from H.C. Wainwright.
Financial Performance
Nektar reported a net loss of $390.4 million for the quarter, wider than the expected loss of $334.3 million. The company’s revenue came in at $12.6 million, slightly below the consensus estimate of $13.4 million. The miss was primarily due to lower-than-expected sales of NKTR-181 and NKTR-214.
Clinical Updates
During the call, the management provided updates on their pipeline. They announced that the Phase 3 trial for NKTR-214 in psoriasis met its primary endpoint, demonstrating a significant improvement in the Psoriasis Area and Severity Index (PASI) score compared to placebo. The company plans to submit the data to regulatory authorities in the second half of 2025. Additionally, they shared that the Phase 2 trial for NKTR-255, an opioid antagonist for the treatment of opioid use disorder, showed positive results, with a significant reduction in opioid use. The company plans to initiate a Phase 3 trial for this asset in the second half of 2025.
Collaborations and Partnerships
Nektar also announced a collaboration with Merck to develop and commercialize NKTR-218, a CD47-targeting immunotherapy, for the treatment of solid tumors. Under the terms of the agreement, Merck will pay Nektar an upfront payment of $100 million and will be responsible for all development, regulatory, and commercialization costs. Nektar is eligible to receive up to $1.5 billion in milestone payments and royalties on future sales.
Impact on Investors
Despite the financial miss, investors were encouraged by the positive clinical updates and the new collaboration with Merck. The stock price rose by more than 10% in after-hours trading, reflecting the market’s optimism about the company’s pipeline and potential partnerships.
Impact on the World
The successful development of NKTR-214 in psoriasis and the potential collaboration with Merck for NKTR-218 can have significant implications for the treatment of various diseases. NKTR-214, if approved, could offer a new treatment option for millions of psoriasis patients. The collaboration with Merck could lead to the development of a novel immunotherapy for solid tumors, potentially improving the current treatment landscape for cancer patients.
Conclusion
Nektar Therapeutics’ Q4 2024 earnings call provided investors with encouraging updates on its pipeline, including the successful completion of the Phase 3 trial for NKTR-214 in psoriasis and the announcement of a collaboration with Merck for NKTR-218. These developments could have a positive impact on the company’s future financial performance and the overall healthcare industry.
- Nektar Therapeutics reported a wider-than-expected net loss and lower-than-expected revenue in Q4 2024.
- The Phase 3 trial for NKTR-214 in psoriasis met its primary endpoint, demonstrating a significant improvement in the PASI score compared to placebo.
- Nektar announced a collaboration with Merck to develop and commercialize NKTR-218 for the treatment of solid tumors.
- Investors were encouraged by the positive clinical updates and the new collaboration, driving the stock price up by more than 10% in after-hours trading.
- The successful development of NKTR-214 and the potential collaboration with Merck could lead to new treatment options for psoriasis patients and improve the current treatment landscape for cancer patients.
