SAN CARLOS, Calif., May 6, 2009 /PRNewswire-FirstCall via COMTEX News Network/ -- Nektar Therapeutics (Nasdaq: NKTR) today reported its financial results for the first quarter ended March 31, 2009.
Net loss for the quarter ended March 31, 2009 was $31.8 million or $0.34 per share, compared to net loss of $40.7 million or $0.44 per share in the first quarter of 2008.
Nektar made improvements to its operating efficiencies as compared to a year ago. Total operating costs and expenses were down 35% to $40.0 million in the first quarter of 2009 as compared to $61.9 million in the first quarter of 2008.
"Nektar continues to make great progress advancing our clinical pipeline and delivering on our objectives in the first quarter of 2009," stated Howard W. Robin, President and Chief Executive Officer of Nektar. "Our recently reported positive Phase 2 data for NKTR-118 provides the first clinical validation of our advanced polymer conjugate technology with oral small molecule drugs. With a robust clinical pipeline and a proven technology platform, Nektar is well-positioned to enter into strategic, high-value partnerships and capitalize on multiple new product opportunities generated by our platform."
Research and development expense was $23.9 million in the first quarter of 2009 as compared to $37.4 million for the same quarter in 2008. Included in the $23.9 million of overall research and development spending is approximately $13.5 million of investment in Nektar preclinical and clinical development programs.
Revenue for the three month period ended March 31, 2009 was $9.7 million compared to revenue of $20.0 million in the first quarter of 2008. This decrease in revenue is primarily the result of lower contract research and manufacturing revenues resulting from the sale of certain of the company's pulmonary assets to Novartis.
Cash, cash equivalents, and short-term investments at March 31, 2009 were $325.3 million.
Conference Call to Discuss First Quarter 2009 Financial Results
A conference call to review results will be held on May 6, 2009 at 2 PM Pacific Time.
Details are below:
Howard Robin, president and chief executive officer, and John Nicholson, chief financial officer, will host a conference call beginning at 5:00 p.m. Eastern Time (ET)/2:00 p.m. Pacific Time (PT) on Wednesday, May 6, 2009.
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.
To access the conference call, follow these instructions:
Dial: 888.396.2369 (U.S.); 617.847.8710 (international)
Participant Passcode: 82263149 (Howard Robin is the host)
An audio replay will also be available shortly after the call and will remain so through May 20, 2009.
To access the replay, follow these instructions:
Dial: 888-286-8010 (U.S.); 617-801-6888 (international)
Participant Passcode: 19053055
About Nektar
Nektar Therapeutics is a biopharmaceutical company developing novel therapeutics based on its PEGylation and advanced polymer conjugate technology platforms. Nektar's technology and drug development expertise have enabled nine approved products for partners, which include leading biopharmaceutical companies. Nektar is also developing a robust pipeline of its own high-value therapeutics that addresses unmet medical needs by leveraging and expanding its technology platforms to improve and enable molecules.
For more information on Nektar Therapeutics, please visit http://www.nektar.com.
This press release contains forward-looking statements that reflect management's current views regarding the progress and potential of the company's pipeline of proprietary drug candidates, the value and potential of the company's technology platform, and the company's position to enter into new strategic collaborations with third parties. These forward-looking statements involve numerous risks and uncertainties, including but not limited to: (i) the company's proprietary product candidates and those of its collaboration partners are in various stages of clinical development and the risk of failure is high and can unexpectedly occur at any stage of development prior to regulatory approval for numerous reasons including, without limitation, safety and efficacy findings; (ii) the timing or success of the commencement or end of clinical trials and commercial launch of partnered products may be delayed or unsuccessful due to slower than anticipated patient enrollment, drug manufacturing challenges, changing standards of care, clinical trial design, clinical outcomes, or delay or failure in obtaining regulatory approval in one or more important markets; (iii) 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; (iv) the outcome of any future intellectual property or other litigation related to the company's proprietary product candidates or complex commercial agreements; (v) if the company is unable to establish and maintain collaboration partnerships on attractive commercial terms, our business, results of operations and financial condition could suffer; and (vi) certain other important risks and uncertainties set forth in the company's Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 6, 2009 and the company's most recent Quarterly Report on Form 10-Q to be filed on or about May 8, 2009. 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.
Jennifer Ruddock, 650-631-4954
Nektar Therapeutics
Susan Noonan, (212) 966-3650
SAN Group
NEKTAR THERAPEUTICS
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share information)
(unaudited)
Three-Months
Ended March 31,
-----------------
2009 2008
---- ----
Revenue:
Product sales and royalties $6,470 $10,371
Collaboration and other 3,241 9,621
----- -----
Total revenue 9,711 19,992
Operating costs and expenses:
Cost of goods sold 5,099 7,227
Other cost of revenue - 5,334
Research and development 23,890 37,373
General and administrative 11,020 11,947
------ ------
Total operating costs and expenses 40,009 61,881
Loss from operations (30,298) (41,889)
Non-Operating income (expense):
Interest income 1,650 5,013
Interest expense (3,337) (3,918)
Other Income 45 302
--- ---
Total non-operating income (expense) (1,642) 1,397
Loss before provision for income taxes (31,940) (40,492)
Provision (benefit) for income taxes (133) 213
---- ---
Net income (loss) $(31,807) $(40,705)
======== ========
Basic and diluted net earnings (loss)
per share $(0.34) $(0.44)
Shares used in computing basic and
diluted net earnings (loss) per share 92,516 92,330
NEKTAR THERAPEUTICS
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(unaudited)
ASSETS March 31, December 31,
2009 2008 (1)
--------- ------------
Current assets:
Cash and cash equivalents $122,300 $155,584
Short-term investments 202,999 223,410
Accounts receivable, net of allowance 5,796 11,161
Inventory 13,392 9,319
Other current assets 6,108 6,746
----- -----
Total current assets 350,595 406,220
Property and equipment, net 75,020 73,578
Goodwill 76,501 76,501
Other assets 3,823 4,237
----- -----
Total assets $505,939 $560,536
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $2,675 $13,832
Accrued compensation 5,437 11,570
Accrued clinical trial expenses 14,982 17,622
Accrued expenses 11,583 9,923
Deferred revenue, current portion 8,416 10,010
Interest payable 58 1,805
Other current liabilities 3,486 3,612
----- -----
Total current liabilities 46,637 68,374
Convertible subordinated notes 214,955 214,955
Capital lease obligations 19,989 20,347
Deferred revenue 54,132 55,567
Deferred gain 5,682 5,901
Other long-term liabilities 5,270 5,238
----- -----
Total liabilities 346,665 370,382
Commitments and contingencies
Stockholders' equity:
Preferred stock - -
Common stock 9 9
Capital in excess of par value 1,315,182 1,312,796
Accumulated other comprehensive
income (loss) (20) 1,439
Accumulated deficit (1,155,897) (1,124,090)
---------- ----------
Total stockholders' equity 159,274 190,154
------- -------
Total liabilities and
stockholders' equity $505,939 $560,536
======== ========
(1) The consolidated balance sheet at December 31, 2008 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 2008 amounts have been reclassified
between line items to conform with the 2009 presentation.
NEKTAR THERAPEUTICS
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands, except per share information)
(unaudited)
Three-Months
Ended March 31,
---------------
2009 2008
---- ----
Cash flows used in operating activities:
Net loss $(31,807) $(40,705)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization 3,615 5,917
Stock-based compensation 2,325 1,084
Other non-cash transactions 115 (112)
Changes in assets and liabilities:
Decrease (increase) in trade accounts
receivable 5,365 7,597
Decrease (increase) in inventories (4,073) 1,160
Decrease (increase) in prepaids and other
assets 496 2,044
Increase (decrease) in accounts payable (8,095) (2,033)
Increase (decrease) in accrued compensation (6,133) (3,932)
Increase (decrease) in accrued clinical
trial expenses (2,640) 86
Increase (decrease) in accrued expenses to
contract manufacturers - (31,994)
Increase (decrease) in accrued expenses 3,364 (123)
Increase (decrease) in deferred revenue (3,029) (1,200)
Increase (decrease) in other liabilities (1,897) (2,761)
------ ------
Net cash used in operating activities (42,394) (64,972)
Cash flows from investing activities:
Purchases of property and equipment (5,104) (5,281)
Purchases of investments (85,298) (156,092)
Maturities of investments 104,458 186,758
Transaction costs from Novartis pulmonary
asset sale (4,766) -
------ ---
Net cash provided by investing activities 9,290 25,385
Cash flows used in financing activities:
Proceeds from issuances of common stock 61 371
Payments of loan and capital lease
obligations (302) (411)
---- ----
Net cash used in financing activities (241) (40)
Effect of exchange rates on cash and cash
equivalents 61 10
--- ---
Net decrease in cash and cash equivalents $(33,284) $(39,617)
Cash and cash equivalents at beginning of
period $155,584 $76,293
-------- -------
Cash and cash equivalents at end of period $122,300 $36,676
======== =======
SOURCE Nektar Therapeutics
http://www.nektar.com
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