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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 9, 2007
NEKTAR THERAPEUTICS
(Exact name of Registrant as specified in its charter)
Delaware 0-24006 94-3134940
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
150 Industrial Road
San Carlos, California 94070
(Address of principal executive offices and Zip Code)
Registrant's telephone number, including area code: (650) 631-3100
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:
[ ] Written communications pursuant to Rule 425 under the Securities Act (17
CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange
Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange
Act (17 CFR 240.13e-4(c))
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Item 2.02 Results of Operations and Financial Condition.
On May 9, 2007, Nektar Therapeutics issued a press release (the "Press Release")
announcing results for the quarter ended March 31, 2007. A copy of the Press
Release is attached as Exhibit 99.1 to this Current Report and is incorporated
herein by reference.
The information in this report, including the exhibit hereto, shall not be
deemed "filed" for purposes of Section 18 of the Securities Exchange Act of
1934, as amended, or otherwise subject to the liabilities of that Section or
Sections 11 and 12(a)(2) of the Securities Act of 1933, as amended. The
information contained herein and in the accompanying exhibit shall not be
incorporated by reference into any filing with the Securities and Exchange
Commission made by Nektar Therapeutics, whether made before or after the date
hereof, regardless of any general incorporation language in such filing.
Item 9.01 Financial Statements and Exhibits.
Exhibits
99.1 Earnings Press Release of Nektar Therapeutics dated May 9, 2007.
2
SIGNATURES
Pursuant to the requirement of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
By: /s/ Howard W. Robin
------------------------------------
Howard W. Robin
Chief Executive Officer, President
and Director
Date: May 9, 2007
By: /s/ Louis Drapeau
------------------------------------
Louis Drapeau
Senior Vice President, Finance
and Administration and Chief
Financial Officer
Date: May 9, 2007
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Exhibit 99.1
Nektar Therapeutics Announces First Quarter 2007 Results
SAN CARLOS, Calif.--(BUSINESS WIRE)--May 9, 2007--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)
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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
CONTACT: Nektar Therapeutics
Investor Relations & Corporate Affairs
Tim Warner, 650-283-4915
twarner@nektar.com
Stephan Herrera, 415-488-7699
sherrera@nektar.com