SAN CARLOS, Calif., July 28, 2010 /PRNewswire via COMTEX News Network/ -- Nektar Therapeutics (Nasdaq: NKTR) today reported its financial results for the second quarter ended June 30, 2010.
Cash, cash equivalents, and short-term investments at June 30, 2010 were $338.2 million as compared to $362.0 million at March 31, 2010.
Revenue for the second quarter of 2010 increased to $42.6 million as compared to $13.0 million in the second quarter of 2009. The increase in revenue year over year is largely the result of the amortization of the $125 million milestone payment received from AstraZeneca in September 2009 under the new partnership agreement for NKTR-118.
Total operating costs and expenses in the second quarter of 2010 declined by 6% to $40.7 million, compared to $43.5 million in the second quarter 2009.
Research and development expense increased to $25.6 million in the second quarter 2010 as compared to $24.0 million for the same quarter in 2009. General and administrative expense was $10.2 million in the second quarter 2010 as compared to $9.1 million in the second quarter of 2009.
"The number of drug candidates advanced by Nektar in just three years highlights the unique potential of our polymer conjugation technology to create a steady stream of valuable product opportunities," said Howard W. Robin, President and Chief Executive Officer of Nektar. "In the second quarter, we reported compelling Phase 2 data for our lead oncology compound, NKTR-102, in both ovarian and breast cancer patients. With a deep pipeline in various stages of development, ranging from preclinical compounds to candidates preparing for Phase 3, Nektar is well-positioned for continued success in 2010."
Net loss for the second quarter ended June 30, 2010 was $0.5 million or $0.01 per share as compared to a net loss of $32.1 million or $0.35 per share in the second quarter of 2009.
Conference Call to Discuss Second Quarter 2010 Financial Results
A conference call to review results will be held today, Wednesday, July 28, 2010 at 2 PM Pacific Time. To access the conference call, follow these instructions:
Dial: (866) 788-0541 (U.S.); (857) 350-1679 (international)
Passcode: 96449158
An audio replay will also be available shortly following the call through Thursday, August 12, 2010 and can be accessed by dialing (888) 286-8010 (U.S.); or (617) 801-6888 (international) with a passcode of 67523786.
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 Therapeutics is a biopharmaceutical company developing novel therapeutics based on its PEGylation and advanced polymer conjugation technology platforms. Nektar has a robust R&D pipeline of potentially high-value therapeutics in oncology, pain and other areas. In the area of pain, Nektar has an exclusive worldwide license agreement with AstraZeneca for Nektar's oral NKTR-118 development program to treat opioid-induced constipation and its NKTR-119 development program for the treatment of pain without constipation side effects. The company has additional pain compounds in preclinical studies. In oncology, NKTR-102, a novel topoisomerase I-inhibitor, is being evaluated in Phase 2 clinical studies for the treatment of ovarian, breast and colorectal cancers. NKTR-105, a novel anti-mitotic agent, is in a Phase 1 clinical study in cancer patients with refractory solid tumors.
Nektar's technology has enabled nine approved products in the U.S. or Europe through partnerships with leading biopharmaceutical companies, including UCB's Cimzia(R) for Crohn's disease and rheumatoid arthritis, Roche's PEGASYS(R) for hepatitis C and Amgen's Neulasta(R) for neutropenia.
Nektar is headquartered in San Carlos, California, with additional R&D operations in Huntsville, Alabama and Hyderabad, India. Further information about the company and its drug development programs and capabilities may be found online at http://www.nektar.com.
This press release contains forward-looking statements that reflect management's current views regarding the progress and potential of Nektar's pipeline of proprietary drug candidates, the value and potential of the Nektar's technology platform, and the value and potential of certain of Nektar's collaborations with third parties. These forward-looking statements involve numerous risks and uncertainties, including but not limited to: (i) Nektar'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 even after initial preclinical and clinical results have been positive; (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) Nektar's patent applications for its proprietary or partner product candidates may not issue, patents that have issued may not be enforceable, or additional 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 Nektar's proprietary product candidates or complex commercial agreements; (v) if Nektar 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 Nektar's Quarterly Report on Form 10-Q for the quarter ended June 30, 2010 to be filed on or about July 28, 2010, the Current Report on Form 8-K filed today, and the most recent Quarterly Report on Form 10-Q for the quarter ended March 31, 2010 filed on May 5, 2010. Actual results could differ materially from the forward-looking statements contained in this press release. Nektar undertakes no obligation to update forward-looking statements, whether as a result of new information, future events or otherwise.
Nektar Investor Inquiries:
Jennifer Ruddock/Nektar Therapeutics
(650) 631-4954
Susan Noonan/SA Noonan Communications, LLC
(212) 966-3650
Nektar Media Inquiries:
Karen Bergman/BCC Partners
(650) 575-1509
Michelle Corral/BCC Partners
(415) 794-8662
NEKTAR THERAPEUTICS
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
ASSETS June 30, December 31,
2010 2009(1)
---- ----
Current assets:
Cash and cash equivalents $23,244 $49,597
Short-term investments 314,976 346,614
Accounts receivable 9,446 4,801
Inventory 9,777 6,471
Other current assets 6,363 6,183
-----
Total current assets $363,806 $413,666
Property and equipment,
net 88,223 78,263
Goodwill 76,501 76,501
Other assets 2,108 7,088
----- -----
Total assets $530,638 $575,518
========
LIABILITIES AND
STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $4,627 $3,066
Accrued compensation 7,908 10,052
Accrued expenses 10,189 4,354
Accrued clinical trial
expenses 13,349 14,167
Deferred revenue, current
portion 65,342 115,563
Other current liabilities 6,051 5,814
-----
Total current liabilities $107,466 $153,016
Convertible subordinated
notes 214,955 214,955
Capital lease obligations 17,887 18,800
Deferred revenue 71,910 76,809
Deferred gain 4,589 5,027
Other long-term
liabilities 4,302 4,544
----- -----
Total liabilities $421,109 $473,151
Commitments and
contingencies
Stockholders' equity:
Preferred stock $- $-
Common stock 9 9
Capital in excess of par
value 1,342,195 1,327,942
Accumulated other
comprehensive income 581 1,025
Accumulated deficit (1,233,256) (1,226,609)
-----------
Total stockholders'
equity $109,529 $102,367
-------- --------
Total liabilities and
stockholders' equity $530,638 $575,518
==============
(1) The consolidated balance sheet at December 31, 2009 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.
NEKTAR THERAPEUTICS
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share information)
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
-------- --------
2010 2009 2010 2009
---- ---- ---- ----
Revenue:
Product sales and
royalties $11,154 $10,525 $14,738 $16,995
License,
collaboration and
other 31,409 2,463 61,062 5,704
------ ----- ------ -----
Total revenue 42,563 12,988 75,800 22,699
Operating costs and
expenses:
Cost of goods sold 4,889 10,379 9,185 16,005
Research and
development 25,600 24,002 48,886 47,365
General and
administrative 10,207 9,087 19,220 20,107
Total operating
costs and expenses 40,696 43,468 77,291 83,477
------ ------ ------ ------
Income (loss) from
operations 1,867 (30,480) (1,491) (60,778)
Non-operating
income (expense):
Interest income 393 950 856 2,600
Interest expense (2,909) (2,948) (5,860) (6,285)
Other income, net 163 203 187 248
--- --- --- ---
Total non-
operating expense (2,353) (1,795) (4,817) (3,437)
Loss before
provision
(benefit) for
income taxes (486) (32,275) (6,308) (64,215)
Provision (Benefit)
for income taxes 31 (206) 339 (339)
--- ---- --- ----
Net loss $(517) $(32,069) $(6,647) $(63,876)
===== ======== ======= ========
Basic and diluted
net loss per share $(0.01) $(0.35) $(0.07) $(0.69)
Shares used in
computing basic
and
diluted net loss
per share 94,065 92,556 93,849 92,536
NEKTAR THERAPEUTICS
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Six Months Ended June 30,
-------------------------
2010 2009
---- ----
Cash flows from operating
activities:
Net loss $(6,647) $(63,876)
Adjustments to reconcile net loss
to net cash used in operating
activities:
Depreciation and amortization 8,334 7,359
Stock-based compensation 8,105 4,691
Deferred rent 542 -
Other non-cash transactions (747) 56
Changes in operating assets and
liabilities:
Accounts receivable (4,645) 2,362
Inventory (3,306) (791)
Other assets (136) 1,284
Accounts payable 2,183 (5,513)
Accrued compensation (2,144) (4,687)
Accrued expenses 1,012 (1,344)
Accrued clinical trial expenses (818) (5,512)
Deferred revenue (55,120) (4,111)
Other liabilities (729) (995)
Net cash used in operating
activities $(54,116) $(71,077)
Cash flows from investing
activities:
Purchases of investments (218,275) (186,016)
Sales of investments 8,197 7,627
Maturities of investments 241,256 221,948
Transaction costs from Novartis
pulmonary asset sale - (4,440)
Purchases of property and equipment (8,796) (7,999)
------ ------
Net cash provided by investing
activities $22,382 $31,120
Cash flows from financing
activities:
Payments of loan and capital lease
obligations (731) (616)
Proceeds from issuances of common
stock 6,148 90
----- ---
Net cash provided by (used in)
financing activities $5,417 $(526)
------ -----
Effect of exchange rates on cash
and cash equivalents (36) (109)
--- ----
Net decrease in cash and cash
equivalents $(26,353) $(40,592)
Cash and cash equivalents at
beginning of period 49,597 155,584
Cash and cash equivalents at end of
period $23,244 $114,992
======= ========
SOURCE Nektar Therapeutics
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