Cash and investments in marketable securities at
"The recent
Revenue in the third quarter of 2014 was
Total operating costs and expenses in the third quarter of 2014 were
Research and development expenses in the third quarter of 2014 were
General and administrative (G&A) expense was
Non-cash interest expense incurred in connection with the
Net income in the third quarter of 2014 was
The company also announced an upcoming presentation at the following scientific congress during the fourth quarter of 2014:
- Abstract Title: "SEO-16: an orally active opioid analgesic with rapid onset of activity and reduced CNS side effects ", Harrison, S., et al.
- Poster Session 244: "Opioids and Other Analgesics"
- Date:
November 16, 2014 ,1:00 p.m. — 5:00 p.m. Eastern Time
26th EORTC-NCI-AACR Symposium on Molecular Targets and Cancer Therapeutics,
- Abstract Title: "Combining the long-acting topoisomerase 1 inhibitor etirinotecan pegol with the PARP inhibitor rucaparib to provide anti-tumor synergy without increased toxicity ",
Hoch , U., et al.
- Poster Session: "Cytotoxics"
- Date:
November 19, 2014 ,8:00 a.m. — 7:30 p.m. Central European Time
AACR Tumor Immunology and Immunotherapy,
- Abstract Title: "Combining the Long-Acting Engineered Cytokine NKTR-214 with Checkpoint Inhibitors is Synergistic and Shows Long Lasting Anti-Tumor Immunity in Murine Tumor Models ", Kantak, S., et al.
- Poster Session A
- Date:
December 2, 2014 ,1:15 p.m. -3:30 p.m. Eastern Time
2014 San Antonio Breast Cancer Symposium,
- Poster P3-10-03: "Etirinotecan pegol target specific pharmacodynamics (PD) biomarkers in circulating tumor cells (CTCs) from patients in the Phase 3 BEACON study in patients with metastatic breast cancer ", Perez, E., et al.
- Poster Session 3-10: "Treatment: Advanced Chemotherapy"
- Date:
December 11, 2014 ,5:00 p.m. — 7:00 p.m. Central Time
Conference Call to Discuss Third Quarter 2014 Financial Results
Nektar management will host a conference call to review the results beginning at
This press release and a live audio-only Webcast of the conference call can be accessed through a link that is posted on the home page and Investor Relations section of the Nektar website: http://www.nektar.com. The web broadcast of the conference call will be available for replay through
To access the conference call, follow these instructions:
Dial: (877) 881.2183 (U.S.); (970) 315.0453 (international)
Passcode: 25628597 (
In the event that any non-GAAP financial measure is discussed on the conference call that is not described in the press release, or explained on the conference call, related information will be made available on the Investor Relations page at the Nektar website as soon as practical after the conclusion of the conference call.
About Nektar
Nektar's technology has enabled nine approved products in the U.S. or
Nektar is headquartered in
MOVANTIKTM is a trademark of the AstraZeneca group of companies.
Cautionary Note Regarding Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: "anticipate," "intend," "plan," "expect," "believe," "should," "may," "will" and similar references to future periods. Examples of forward-looking statements include, among others, statements we make regarding the potential of MOVANTIK™; the timing of the initiation of the Phase 3 clinical program for NKTR-181; the timing of availability of topline overall survival data for the NKTR-102 Phase 3 study; and the value and potential of our technology and research and development pipeline. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results to differ materially from those indicated in the forward-looking statements include, among others, (i) our drug candidates and those of our collaboration partners are in various stages of clinical development and the risk of failure is high and can unexpectedly occur at any stage prior to regulatory approval for numerous reasons including safety and efficacy findings even after positive findings in previous preclinical and clinical studies; (ii) the timing of the commencement or end of clinical trials and the commercial launch of drug candidates may be delayed or unsuccessful due to regulatory delays, slower than anticipated patient enrollment, manufacturing challenges, changing standards of care, evolving regulatory requirements, clinical trial design, clinical outcomes, competitive factors, or delay or failure in ultimately obtaining regulatory approval in one or more important markets; (iii) acceptance, review and approval decisions for new drug applications by health authorities is an uncertain and evolving process and health authorities retain significant discretion at all stages of the regulatory review and approval decision process; (iv) scientific discovery of new medical breakthroughs is an inherently uncertain process and the future success of the application of our technology platform to potential new drug candidates is therefore highly uncertain and unpredictable and one or more research and development programs could fail; (v) patents may not issue from our patent applications for our drug candidates, patents that have issued may not be enforceable, or additional intellectual property licenses from third parties may be required; and (vi) the outcome of any existing or future intellectual property or other litigation related to our drug candidates and those of our collaboration partners. Other important risks and uncertainties set forth in our Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on August 1, 2014. Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.
Nektar Investor Inquiries: |
|
|
(415) 482-5585 |
|
(212) 600-1494 |
Nektar Media Inquiries: |
|
|
(212) 257-6738 |
|
|||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||||||||
(In thousands) |
|||||||||||
(Unaudited) |
|||||||||||
ASSETS |
|
|
(1) | ||||||||
Current assets: |
|||||||||||
Cash and cash equivalents |
$ 32,008 |
$ 39,067 |
|||||||||
Restricted cash |
25,000 |
- |
|||||||||
Short-term investments |
204,635 |
197,959 |
|||||||||
Accounts receivable, net |
46,074 |
2,229 |
|||||||||
Inventory |
11,695 |
13,452 |
|||||||||
Other current assets |
4,708 |
5,175 |
|||||||||
Total current assets |
324,120 |
257,882 |
|||||||||
Restricted cash |
- |
25,000 |
|||||||||
Property and equipment, net |
69,275 |
66,974 |
|||||||||
Goodwill |
76,501 |
76,501 |
|||||||||
Other assets |
7,006 |
8,170 |
|||||||||
Total assets |
$ 476,902 |
$ 434,527 |
|||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) |
|||||||||||
Current liabilities: |
|||||||||||
Accounts payable |
$ 5,428 |
$ 9,115 |
|||||||||
Accrued compensation |
13,753 |
14,254 |
|||||||||
Accrued expenses |
7,760 |
6,243 |
|||||||||
Accrued clinical trial expenses |
9,643 |
16,905 |
|||||||||
Interest payable |
3,167 |
6,917 |
|||||||||
Deferred revenue, current portion |
24,626 |
23,664 |
|||||||||
Other current liabilities |
16,172 |
21,123 |
|||||||||
Total current liabilities |
80,549 |
98,221 |
|||||||||
Senior secured notes |
125,000 |
125,000 |
|||||||||
Capital lease obligations, less current portion |
5,339 |
8,049 |
|||||||||
Liability related to receipt of refundable milestone payment |
- |
70,000 |
|||||||||
Liability related to sale of future royalties, less current portion |
120,492 |
121,520 |
|||||||||
Deferred revenue, less current portion |
82,902 |
82,384 |
|||||||||
Other long-term liabilities |
15,402 |
19,256 |
|||||||||
Total liabilities |
429,684 |
524,430 |
|||||||||
Commitments and contingencies |
|||||||||||
Stockholders' equity (deficit) : |
|||||||||||
Preferred stock |
- |
- |
|||||||||
Common stock |
12 |
11 |
|||||||||
Capital in excess of par value |
1,789,010 |
1,643,660 |
|||||||||
Accumulated other comprehensive loss |
(1,178) |
(1,181) |
|||||||||
Accumulated deficit |
(1,740,626) |
(1,732,393) |
|||||||||
Total stockholders' equity (deficit) |
47,218 |
(89,903) |
|||||||||
Total liabilities and stockholders' equity (deficit) |
$ 476,902 |
$ 434,527 |
(1) The consolidated balance sheet at |
| ||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||
(In thousands, except per share information) | ||||||||||||
(Unaudited) | ||||||||||||
Three Months Ended |
Nine Months Ended | |||||||||||
|
| |||||||||||
2014 |
2013 |
2014 |
2013 | |||||||||
Revenue: |
||||||||||||
Product sales and royalty revenue |
$ 6,172 |
$ 15,026 |
$ 17,980 |
$ 37,836 | ||||||||
Non-cash royalty revenue related to sale of future royalties |
6,143 |
4,523 |
16,753 |
12,744 | ||||||||
License, collaboration and other revenue |
120,556 |
41,360 |
146,422 |
67,195 | ||||||||
Total revenue |
132,871 |
60,909 |
181,155 |
117,775 | ||||||||
Operating costs and expenses: |
||||||||||||
Cost of goods sold |
9,220 |
12,877 |
22,235 |
29,549 | ||||||||
Research and development |
34,200 |
43,914 |
109,240 |
141,762 | ||||||||
General and administrative |
9,130 |
10,643 |
28,677 |
30,700 | ||||||||
Total operating costs and expenses |
52,550 |
67,434 |
160,152 |
202,011 | ||||||||
Income (loss) from operations |
80,321 |
(6,525) |
21,003 |
(84,236) | ||||||||
Non-operating income (expense): |
||||||||||||
Interest income |
133 |
116 |
399 |
639 | ||||||||
Interest expense |
(4,391) |
(4,587) |
(13,412) |
(13,888) | ||||||||
Non-cash interest expense on liability related to sale of future royalties |
(5,203) |
(5,616) |
(15,725) |
(16,644) | ||||||||
Other income (expense), net |
(7) |
262 |
136 |
385 | ||||||||
Total non-operating expense, net |
(9,468) |
(9,825) |
(28,602) |
(29,508) | ||||||||
Income (loss) before provision for income taxes |
70,853 |
(16,350) |
(7,599) |
(113,744) | ||||||||
Provision for income taxes |
248 |
193 |
634 |
610 | ||||||||
Net income (loss) |
$ 70,605 |
$ (16,543) |
$ (8,233) |
$ (114,354) | ||||||||
Net income (loss) per share: |
||||||||||||
Basic |
$ 0.55 |
$ (0.14) |
$ (0.07) |
$ (0.99) | ||||||||
Diluted |
$ 0.53 |
$ (0.14) |
$ (0.07) |
$ (0.99) | ||||||||
Weighted average shares outstanding used in computing net income (loss) per share |
||||||||||||
Basic |
127,504 |
115,812 |
126,043 |
115,557 | ||||||||
Diluted |
132,177 |
115,812 |
126,043 |
115,557 |
| ||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||
(In thousands) | ||||||||||||
(Unaudited) | ||||||||||||
Nine Months Ended | ||||||||||||
2014 |
2013 | |||||||||||
Cash flows from operating activities: |
||||||||||||
Net loss |
$ (8,233) |
$ (114,354) | ||||||||||
Adjustments to reconcile net loss to net cash used in operating activities: |
||||||||||||
Recognition of previously received milestone payment which is no longer refundable |
(70,000) |
- | ||||||||||
Non-cash royalty revenue related to sale of future royalties |
(16,753) |
(12,744) | ||||||||||
Non-cash interest expense on liability related to sale of future royalties |
15,725 |
16,644 | ||||||||||
Stock-based compensation |
12,647 |
13,165 | ||||||||||
Depreciation and amortization |
9,733 |
10,882 | ||||||||||
Other non-cash transactions |
313 |
332 | ||||||||||
Changes in operating assets and liabilities: |
||||||||||||
Accounts receivable, net |
(43,845) |
1,248 | ||||||||||
Inventory |
1,757 |
3,193 | ||||||||||
Other assets |
679 |
6,817 | ||||||||||
Accounts payable |
(3,670) |
697 | ||||||||||
Accrued compensation |
(501) |
5,137 | ||||||||||
Accrued expenses |
1,667 |
2,741 | ||||||||||
Accrued clinical trial expenses |
(7,262) |
(2,261) | ||||||||||
Interest payable |
(3,750) |
(3,916) | ||||||||||
Deferred revenue |
1,480 |
(14,914) | ||||||||||
Other liabilities |
(7,366) |
(4,825) | ||||||||||
Net cash used in operating activities |
(117,379) |
(92,158) | ||||||||||
Cash flows from investing activities: |
||||||||||||
Maturities of investments |
171,826 |
274,011 | ||||||||||
Purchases of investments |
(200,160) |
(140,569) | ||||||||||
Sales of investments |
21,661 |
- | ||||||||||
Purchases of property and equipment |
(6,090) |
(1,382) | ||||||||||
Net cash (used in) provided by investing activities |
(12,763) |
132,060 | ||||||||||
Cash flows from financing activities: |
||||||||||||
Payment of capital lease obligations |
(2,578) |
(2,201) | ||||||||||
Repayment of proceeds from sale of future royalties |
(7,000) |
(3,000) | ||||||||||
Issuance of common stock, net of issuance costs |
116,536 |
- | ||||||||||
Proceeds from shares issued under equity compensation plans |
16,168 |
5,253 | ||||||||||
Net cash provided by financing activities |
123,126 |
52 | ||||||||||
Effect of exchange rates on cash and cash equivalents |
(43) |
20 | ||||||||||
Net (decrease) increase in cash and cash equivalents |
(7,059) |
39,974 | ||||||||||
Cash and cash equivalents at beginning of period |
39,067 |
25,437 | ||||||||||
Cash and cash equivalents at end of period |
$ 32,008 |
$ 65,411 | ||||||||||
Supplemental disclosure of cash flow information: |
||||||||||||
Cash paid for interest |
$ 16,487 |
$ 17,097 |
SOURCE
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