SAN CARLOS, Calif., May 09, 2007 (BUSINESS WIRE) -- Nektar Therapeutics (Nasdaq:NKTR) announced today the company's financial results for the first quarter that ended on March 31, 2007:
-- Revenue totaled $85.0 million compared to $29.0 million in the same period in 2006.
-- Exubera-related revenue was $59.8 million compared to $1.5 million in the same period in 2006. On January 1, 2007, we began recognizing revenue upon product shipment. First quarter 2007 revenues include $26.0 million resulting from the elimination of the 60-day revenue deferral that was applied to Exubera manufacturing sales to Pfizer in 2006. As a result, the first quarter of 2007 included an additional 60 days of Exubera product sales to Pfizer.
-- Cash, cash equivalents, and short- and long-term investments of $398.3 million as of March 31, 2007, compared to $467.0 million as of December 31, 2006. In the first quarter of 2007, we repaid $36 million of convertible debt. We also experienced changes in our balance sheet including an increase in receivables and reduction in accounts payable which we do not expect to incur in future quarters in 2007.
-- Nektar reported a net loss of $25.7 million or $(0.28) per share (which included $6.3 million of stock-based compensation charges) compared to a net loss of $33.5 million or $(0.38) per share in the same period of 2006 (which included $6.9 million of stock-based compensation charges).
"We made significant progress this quarter," said Howard Robin, President and Chief Executive Officer of the company. "In particular, we are excited about the progress we made in PEGylating small molecules. Our two most advanced programs--NKTR-102 -- PEGylated-irinotecan and NKTR-118 -- PEGylated-naloxol are based on well understood molecules and have enormous therapeutic and commercial potential. We plan to initiate Phase 2 clinical trials for both of these by year-end."
Mr. Robin will host a conference call today for analysts and investors beginning at 1:30 p.m. PST to discuss the company's performance. This conference call will be available via webcast and can be accessed through a link that is posted on the Investor Relations section of the Nektar website, www.nektar.com. The web broadcast of the conference call will be available for replay through May 23, 2007.
To access the conference call via telephone, follow these instructions:
Dial: (800) 640-9765 (U.S.); (847) 413-4837 (international).
Passcode: 17659665 (Howard Robin is the host).
About Nektar
Nektar Therapeutics is a biopharmaceutical company with a mission to develop and enable differentiated therapeutics with its industry-leading pulmonary and PEGylation technology platforms. Nektar pulmonary and PEGylation technology, expertise, manufacturing capabilities and know-how have enabled nine approved products for partners, which include the world's leading pharmaceutical and biotechnology companies. Nektar also develops its own products by applying its pulmonary and PEGylation technology platforms to existing medicines with the objective to enhance performance, such as improving efficacy, safety and compliance.
This press release contains forward-looking statements that reflect the company's current views and expectations regarding the progress, potential, and clinical plans for certain of the company's proprietary product candidates, the value of the company's technology platforms, and prospects for the company's business. These forward-looking statements involve risks and uncertainties, including but not limited to: (i) the company's proprietary product candidates are in the early phases of clinical development and the risk of failure is high and can occur at any stage, (ii) the company's ability to obtain regulatory approval of its proprietary product candidates, (iii) the company's success in obtaining regulatory approvals for the proprietary product candidates, (iii) there can be no assurance that the company's patent applications for its proprietary products will issue, patents that have issued will be enforceable, or that intellectual property licenses from third parties may not be required in the future, (iv) the outcome of any existing or future intellectual property or other litigation related to the company's proprietary product candidates, and (v) unanticipated changes to our balance sheet components. Other important risks and uncertainties are detailed in the company's reports and other filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q. Actual results could differ materially from the forward-looking statements contained in this press release. The company undertakes no obligation to update forward-looking statements, whether as a result of new information, future events or otherwise.
Exubera is a registered trademark of Pfizer Inc.
NEKTAR THERAPEUTICS
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
March 31, 2007 December 31, 2006
(unaudited) (1)
-------------- -----------------
ASSETS
Current assets:
Cash and cash equivalents $ 83,140 $ 63,760
Short-term investments 315,187 394,880
Accounts receivable, net of
allowance 64,747 47,148
Inventory 16,770 14,656
Other current assets 11,733 14,595
-------------- -----------------
Total current assets 491,577 535,039
Long-term investments - 8,337
Property and equipment, net 132,345 133,812
Goodwill 78,431 78,431
Other intangible assets, net 3,390 3,626
Other assets 7,997 8,932
-------------- -----------------
Total assets $ 713,740 $ 768,177
============== =================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 3,658 $ 7,205
Accrued compensation 11,596 12,994
Accrued expenses 15,338 17,942
Interest payable 1,130 3,814
Capital lease obligations, current
portion 760 711
Deferred revenue, current portion 8,635 16,409
Convertible subordinated notes,
current portion 66,627 102,653
Other current liabilities 3,732 3,586
-------------- -----------------
Total current liabilities 111,476 165,314
Convertible subordinated notes 315,000 315,000
Capital lease obligations 19,548 19,759
Deferred revenue 40,272 23,697
Other long-term liabilities 16,821 17,347
-------------- -----------------
Total liabilities 503,117 541,117
Commitments and contingencies
Stockholders' equity:
Preferred stock - -
Common stock 9 9
Capital in excess of par value 1,292,977 1,283,982
Accumulated other comprehensive
income 303 62
Accumulated deficit (1,082,666) (1,056,993)
-------------- -----------------
Total stockholders' equity 210,623 227,060
-------------- -----------------
Total liabilities and stockholders'
equity $ 713,740 $ 768,177
============== =================
(1) The consolidated balance sheet at December 31, 2006 has been
derived from the audited financial statements at that date but does
not include all of the information and notes required by accounting
principles generally accepted in the United States for complete
financial statements. Certain 2006 amounts have been reclassified
between line items to conform with the 2007 presentation.
NEKTAR THERAPEUTICS
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share information)
Unaudited
----------------------------
Three-Months Ended March 31,
----------------------------
2007 2006
------------ -------------
Revenue:
Product sales and royalties $ 73,019 $ 12,896
Contract research 11,997 16,063
------------ -------------
Total revenue 85,016 28,959
Operating costs and expenses:
Cost of goods sold 56,522 8,995
Research and development 37,492 31,401
General and administrative 16,735 20,373
Amortization of other intangible
assets 236 1,364
------------ -------------
Total operating costs and expenses 110,985 62,133
------------ -------------
Loss from operations (25,969) (33,174)
Interest income 5,473 4,882
Interest expense (4,933) (5,142)
Other income (expense), net 6 (37)
------------ -------------
Loss before provision for income taxes (25,423) (33,471)
Provision for income taxes (250) -
------------ -------------
Net loss $ (25,673) $ (33,471)
============ =============
Basic and diluted net loss per share $ (0.28) $ (0.38)
Shares used in computing basic and
diluted net loss per share 91,454 88,926
SOURCE: Nektar Therapeutics
Nektar Therapeutics Investor Relations & Corporate Affairs Tim Warner, 650-283-4915 twarner@nektar.com Stephan Herrera, 415-488-7699 sherrera@nektar.com
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