SAN CARLOS, Calif., Nov 07, 2007 /PRNewswire-FirstCall via COMTEX News Network/ -- Nektar Therapeutics (Nasdaq: NKTR) announced today the company's financial results for the third quarter that ended September 30, 2007.

Revenue totaled $56.3 million in the third quarter of 2007 compared to $58.6 million in the third quarter of 2006. For the nine months ended September 30, 2007, Nektar reported total revenue of $207.3 million compared to $147.8 million in the same period in 2006.

Cash, cash equivalents, and short-term investments were $452.6 million at September 30, 2007 compared to $406.8 million at June 30, 2007.

Nektar reported a net loss of $18.6 million or $0.20 per share in the third quarter of 2007 compared to a net loss of $19.6 million or $0.22 per share in the same period of 2006.

For the nine months ended September 30, 2007, net loss was $71.8 million or $0.78 per share compared to a net loss of $115.9 million or $1.29 per share in the same period in 2006.

"We've made great progress reshaping Nektar this year," said Howard W. Robin, president and chief executive officer of Nektar. "We realigned the company's business and research activities around our PEGylation and pulmonary technology platforms, built a strong executive team, signed a new strategic partnership with Bayer, and are moving two proprietary programs into Phase 2 clinical trials. Finally, for the first time in Nektar's history, we expect almost no operating cash burn for the year."

Mr. Robin will host a conference call today for analysts and investors beginning at 2:00 p.m. Pacific time 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, http://www.nektar.com. The web broadcast of the conference call will be available for replay through November 14, 2007.

    To access the conference call, follow these instructions:

      Dial: (800) 299-6183 (U.S.); (617) 801-9713 (international)
      Passcode: 21153437 (Howard Robin is the host)

    Audio replay dial-in and passcode:

      Dial: (888) 286-8010 (U.S.);(617) 801-6888 (international)
      Passcode: 86766898

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 ten 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 as to its financial plan, expectations regarding the progress, potential, and clinical plans for the company's proprietary product candidates in clinical development, the value of the company's technology platforms, business development potential with respect to potential future partnerships and overall 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 and those of certain of its partners are in the early phases of clinical development and the risk of failure is high and can occur at any stage prior to regulatory approval, (ii) the timing or success of the commencement or end of clinical trial phases is subject to a number of uncertainties including but not limited to patient enrollment, regulatory requirements and clinical outcomes, the company's or its partner's ability to obtain regulatory approval of its proprietary product candidates, (iii) the company's or its partner's success in obtaining regulatory approvals for product candidates, (iv) the company may not successfully complete new collaborative arrangements with respect to our product candidates, or if any arrangements we do negotiate do not include sufficiently favorable commercial terms, we may not receive an adequate return on these investments and our results of operations and financial condition would suffer (v) the company's patent applications for its proprietary or partner product candidates may not issue, patents that have issued may not be enforceable, or intellectual property licenses from third parties may be required in the future, and (vi) the outcome of any existing or future intellectual property or other litigation related to the company's proprietary product candidates. 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.

     Tim Warner, 650-283-4915
     twarner@nektar.com

     Stephan Herrera, 415-488-7699
     sherrera@nektar.com

     Jennifer Ruddock, 650-631-4954
     jruddock@nektar.com



                             NEKTAR THERAPEUTICS
               CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                 (In thousands, except per share information)

                                           Unaudited            Unaudited
                                       Three-Months Ended   Nine-Months Ended
                                         September 30,        September 30,
                                         2007      2006      2007      2006


    Revenue:
       Product sales and royalties     $37,497   $43,521  $159,818   $103,564
       Contract research                18,824    15,111    47,436     44,250
    Total revenue                       56,321    58,632   207,254    147,814

    Operating costs and expenses:
       Cost of goods sold               27,457    31,179   123,469     76,947
       Research and development         35,773    36,005   114,265    106,860
       General and administrative       12,426    13,422    42,339     60,878
       Litigation Settlement               -         -         -       17,710
       Impairment of long lived
        assets                             -         -         -        1,156
       Amortization of other
        intangible assets                  237       708       710      3,331
    Total operating costs and
     expenses                           75,893    81,314   280,783    266,882

    Loss from operations               (19,572)  (22,682)  (73,529)  (119,068)


    Interest income                      5,519     6,060    16,444     17,316
    Interest expense                    (4,773)   (5,255)  (14,408)   (15,335)
    Other Income                           206     2,273       189      1,181

    Loss before provision for income
     taxes                             (18,620)  (19,604)  (71,304)  (115,906)

    Provision for income taxes             -         -        (500)       -

    Net loss                          $(18,620) $(19,604) $(71,804) $(115,906)


    Basic and diluted net loss per
     share                              $(0.20)   $(0.22)   $(0.78)    $(1.29)

    Shares used in computing basic
     and diluted net loss per share     92,028    90,017    91,764     89,550



                             NEKTAR THERAPEUTICS
                    CONDENSED CONSOLIDATED BALANCE SHEETS
                                (In thousands)

                                                September 30,     December 31,
                                                   2007                2006
                                                (unaudited)             (1)
                    ASSETS

    Current assets:
       Cash and cash equivalents                   $174,713           $63,760
       Short-term investments                       277,931           394,880
       Accounts receivable, net of
        allowance                                    36,805            47,148
       Inventory                                     17,175            14,656
       Other current assets                           8,147            14,595
          Total current assets                      514,771           535,039

    Long-term investments                               -               8,337
    Property and equipment, net                     135,317           133,812
    Goodwill                                         78,431            78,431
    Other intangible assets, net                      2,917             3,626
    Other assets                                      6,849             8,932
       Total assets                                $738,285          $768,177

     LIABILITIES AND STOCKHOLDERS' EQUITY

    Current liabilities:
       Accounts payable                              $4,421            $7,205
       Accrued compensation                          11,796            12,994
       Accrued expenses                              24,564            17,942
       Interest payable                               1,130             3,814
       Capital lease obligations, current
        portion                                       1,134               711
       Deferred revenue, current portion             43,636            16,409
       Convertible subordinated notes,
        current portion                              66,627           102,653
       Other current liabilities                      3,371             3,586
          Total current liabilities                 156,679           165,314

    Convertible subordinated notes                  315,000           315,000
    Capital lease obligations                        21,987            19,759
    Deferred revenue                                 58,247            23,697
    Other long-term liabilities                      15,469            17,347
          Total liabilites                          567,382           541,117

    Commitments and contingencies

    Stockholders' equity:
       Preferred stock                                  -                 -
       Common stock                                       9                 9
       Capital in excess of par value             1,299,173         1,283,982
       Accumulated other comprehensive
        income                                          518                62
       Accumulated deficit                       (1,128,797)       (1,056,993)
          Total stockholders' equity                170,903           227,060
       Total liabilities and stockholders'
        equity                                     $738,285          $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 generally
        accepted accounting principles in the United States for complete
        financial statements. Certain 2006 amounts have been reclassified
        between line items to conform with the 2007 presentation.

SOURCE Nektar Therapeutics

http://www.nektar.com

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