0000906709-23-000012 | 10-Q | XBRL Viewer

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Condensed Consolidated Financial Statement Details - Schedule of Goodwill (Details) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Goodwill [Roll Forward]
Goodwill – beginning balance		$ 76,501		$ 76,501
Impairment of goodwill	$ 0	$ (76,500)	$ 0	(76,501)	$ 0
Goodwill – ending balance	$ 0			$ 0

- Definition

Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.

+ References + Details

Stock-Based Compensation

6 Months Ended

Jun. 30, 2023

Share-Based Payment Arrangement [Abstract]

Stock-Based Compensation

On June 8, 2023, the stockholders of Nektar approved an amendment to the Amended and Restated 2017 Performance Incentive Plan to increase the aggregate number of shares of Common Stock authorized for issuance thereunder by 12,000,000 shares.

We recognized total stock-based compensation expense in our Condensed Consolidated Statements of Operations as follows (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Cost of goods sold	$	801	$	649	$	1,613	$	1,317
Research and development	3,759		4,751		7,905		16,793
General and administrative	3,406		4,781		8,467		13,032
Restructuring, impairment and other costs of terminated program	—		922		—		922
Total stock-based compensation	$	7,966	$	11,103	$	17,985	$	32,064

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Cash flows from operating activities:
Net loss	$ (188,140)	$ (249,461)
Adjustments to reconcile net loss to net cash used in operating activities:
Non-cash royalty revenue related to the sales of future royalties	(32,693)	(33,825)
Non-cash interest expense on liabilities related to the sales of future royalties	12,557	14,757
Change in fair value of development derivative liability	0	(33,427)
Non-cash research and development expense	0	4,951
Stock-based compensation	17,985	32,064
Depreciation and amortization	4,468	7,171
Deferred income tax expense	(1,839)	0
Impairment of right-of-use assets and property, plant and equipment	26,455	57,321
Impairment of goodwill	76,501	0
Amortization of premiums (discounts), net and other non-cash transactions	(8,150)	700
Changes in operating assets and liabilities:
Accounts receivable	4,646	12,486
Inventory	(1,487)	(1,168)
Operating leases, net	(3,717)	1,486
Other assets	7,902	7,627
Accounts payable	(9,997)	2,833
Accrued expenses	(7,929)	13,068
Net cash used in operating activities	(103,438)	(163,417)
Cash flows from investing activities:
Purchases of investments	(249,724)	(247,014)
Maturities of investments	316,088	466,423
Purchases of property, plant and equipment	(595)	(4,983)
Net cash provided by investing activities	65,769	214,426
Cash flows from financing activities:
Proceeds from shares issued under equity compensation plans	18	655
Cash receipts from development derivative liability	0	750
Net cash provided by financing activities	18	1,405
Effect of foreign exchange rates on cash and cash equivalents	152	(87)
Net increase (decrease) in cash and cash equivalents	(37,499)	52,327
Cash and cash equivalents at beginning of period	88,227	25,218
Cash and cash equivalents at end of period	50,728	77,545
Supplemental disclosures of cash flow information:
Cash paid for income taxes	$ 2,656	$ 85

Restructuring, Impairment and Costs of Terminated Program, and Impairment of Goodwill - Sublease Information (Details) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Restructuring Cost and Reserve [Line Items]
Impairment expense for facilities	$ 13,255	$ 11,500	$ 52,201	$ 24,755	$ 52,200
Impairment of other property, plant and equipment		1,700	5,120	1,700
Impairment of other property, plant and equipment	13,300		57,321	26,455	57,321
Reported Value Measurement
Restructuring Cost and Reserve [Line Items]
Property, plant and equipment and operating lease right-of-use assets		18,484	87,268		87,268	$ 52,032
Property, Plant and Equipment
Restructuring Cost and Reserve [Line Items]
Impairment expense for facilities	1,563		9,372	3,363
Impairment of other property, plant and equipment			5,120	1,700
Impairment of other property, plant and equipment	1,600		14,492	5,063
Property, Plant and Equipment \| Reported Value Measurement
Restructuring Cost and Reserve [Line Items]
Property, plant and equipment and operating lease right-of-use assets		2,092	16,348		16,348	7,206
Operating Lease Right-of-Use Assets
Restructuring Cost and Reserve [Line Items]
Impairment expense for facilities	$ 11,692		42,829	21,392
Impairment of other property, plant and equipment			42,829	$ 21,392
Operating Lease Right-of-Use Assets \| Reported Value Measurement
Restructuring Cost and Reserve [Line Items]
Property, plant and equipment and operating lease right-of-use assets		16,392	70,920		70,920	44,826
Fair Value, Level 3 \| Estimate of Fair Value Measurement
Restructuring Cost and Reserve [Line Items]
Property, plant and equipment and operating lease right-of-use assets		5,229	35,067		35,067	27,277
Fair Value, Level 3 \| Property, Plant and Equipment \| Estimate of Fair Value Measurement
Restructuring Cost and Reserve [Line Items]
Property, plant and equipment and operating lease right-of-use assets		529	6,976		6,976	3,843
Fair Value, Level 3 \| Operating Lease Right-of-Use Assets \| Estimate of Fair Value Measurement
Restructuring Cost and Reserve [Line Items]
Property, plant and equipment and operating lease right-of-use assets		$ 4,700	$ 28,091		$ 28,091	$ 23,434

Condensed Consolidated Financial Statement Details - Schedule of Other Current Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Other current assets	$ 9,602	$ 15,808
Prepaid research and development expenses
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Other current assets	3,265	7,398
Other prepaid expenses
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Other current assets	3,804	5,987
Non-trade receivables and other
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Other current assets	$ 2,533	$ 2,423

License and Collaboration Agreements - Additional Information (Details) - USD ($)				1 Months Ended	3 Months Ended		6 Months Ended
	Feb. 12, 2021	Apr. 03, 2018	Jul. 23, 2017	Apr. 30, 2018	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2020
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Derivative liability									$ 0
Revenue, excluding assessed tax					$ 20,499,000	$ 21,585,000	$ 42,093,000	$ 46,407,000
SFJ
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Committed funding (up to)	$ 150,000,000
Success payments (up to)	$ 637,500,000
Non-cash royalty revenue related to the sales of future royalties
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue, excluding assessed tax					15,832,000	16,264,000	32,693,000	33,825,000
Bristol Myers Squibb Company \| Purchase Agreement
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Shares issued (in shares)				8,284,600
Sale of stock consideration received				$ 850,000,000
Bristol Myers Squibb Company \| Nektar 214 \| Research and Development Expense
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Reimbursement of expenses						$ 7,600,000		$ 24,900,000
Other Partner
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Potential future additional payments for development milestones					$ 40,000,000		$ 40,000,000
Nektar-358 \| Eli Lilly
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Percentage of sharing in Phase 2 development costs			75.00%
Nektar-358 \| Maximum \| Eli Lilly And Company
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Potential future additional development and regulatory milestones (up to)			$ 250,000,000
Bristol Myers Squibb Collaboration Agreement \| Bristol Myers Squibb Company \| Nektar 214
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Percentage of sharing production costs		35.00%
Bristol Myers Squibb Collaboration Agreement \| Bristol Myers Squibb Company \| Nektar 214 \| Opdivo
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Percentage of sharing development costs		67.50%
Nektar's \| Nektar-358
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Received upfront and milestone payment			$ 150,000,000
Percentage of sharing in Phase 2 development costs			25.00%
Nektar's \| Bristol Myers Squibb Collaboration Agreement \| Nektar 214
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Percentage of sharing production costs		65.00%
Upfront and milestone payments received from license agreements				$ 1,000,000,000
Nektar's \| Bristol Myers Squibb Collaboration Agreement \| Nektar 214 \| Milestone One
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Potential future additional payments for development milestones										$ 50,000,000
Nektar's \| Bristol Myers Squibb Collaboration Agreement \| Nektar 214 \| Opdivo
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Percentage of sharing development costs		32.50%

Organization and Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization	Organization We are a research-based biopharmaceutical company headquartered in San Francisco, California and incorporated in Delaware. We (individually or with a partner) are developing a pipeline of drug candidates that utilize our advanced polymer conjugate technology platforms, which are designed to enable the development of new molecular entities that target known mechanisms of action. Our research and development pipeline of new investigational drugs includes investigational treatments in the field of immunotherapy. Our research and development activities have required significant ongoing investment to date and are expected to continue to require significant investment. As a result, we expect to continue to incur substantial losses and negative cash flows from operations in the future. We have financed our operations primarily through cash generated from licensing, collaboration and manufacturing agreements and financing transactions.
Results of Clinical Trial Programs and the Restructuring Plans	Results of Clinical Trial Programs and the Restructuring Plans In March and April 2022, we announced that our registrational trials of bempegaldesleukin in combination with Opdivo® in metastatic melanoma, renal cell carcinoma and locally advanced or metastatic urothelial cancer under our Strategic Collaboration Agreement (BMS Collaboration Agreement) with Bristol-Myers Squibb Company (BMS) did not meet their primary endpoints. Based on these results, in April 2022, we announced our decisions to discontinue all development of bempegaldesleukin in combination with checkpoint inhibitors, including these trials, our registrational trial in adjuvant melanoma under our BMS Collaboration Agreement, and our Phase 2/3 study of bempegaldesleukin in combination with Keytruda® in squamous cell cancer of the head and neck under our Co-Development Agreement with SFJ Pharmaceuticals. See Note 5 for additional information regarding our BMS Collaboration Agreement and Co-Development Agreement with SFJ Pharmaceuticals. Pursuant to the BMS Collaboration Agreement, we and BMS continue our efforts to wind down the bempegaldesleukin program. In April 2022, we also announced new strategic reorganization and cost restructuring plans (together, the 2022 Restructuring Plan), pursuant to which we completed an approximately 70% reduction of our workforce during 2022 and sold our research facility in India in December 2022. On February 23, 2023, we announced the topline data from the Phase 2 study of rezpegaldesleukin in adult patients with systemic lupus erythematosus (SLE) (Phase 2 Lupus Study) under our collaboration agreement with Eli Lilly and Company (Lilly). Lilly notified us that it does not intend to advance rezpegaldesleukin into Phase 3 development for SLE. On April 27, 2023, we announced that we would be regaining the full rights to rezpegaldesleukin from Lilly, and the collaboration agreement has subsequently terminated. We are initiating a Phase 2b study of rezpegaldesleukin in patients with moderate-to-severe atopic dermatitis in 2023. We will also explore other auto-immune indications for the development of rezpegaldesleukin. On August 7, 2023, we announced that the efficacy data previously generated by Lilly for rezpegaldesleukin that were presented at the European Academy of Dermatology and Venereolgy (EADV) conference in September 2022 were incorrectly calculated by Lilly. The erroneous data were reported in connection with the Phase 1b study of rezpegaldesleukin in adult patients with atopic dermatitis (Phase 1b AD Study) and the Phase 1b study of rezpegaldesleukin in adult patients with psoriasis. We reported that the new and corrected data from the Phase 1b AD Study demonstrate that 12 weeks of rezpegaldesleukin at the 24 µg/kg dose resulted in a mean Eczema Area Severity Index (EASI) score improvement of 83% with a p-value of 0.002 as compared to placebo and an EASI-75 response rate of 41%. Pursuant to plans approved by our Board of Directors (the Board) on March 29, 2023, we announced on April 17, 2023, a new strategic reprioritization and cost restructuring plan (the 2023 Restructuring Plan). Under the 2023 Restructuring Plan, we are reducing our San Francisco-based workforce by approximately 60%, which was substantially completed by June 2023. We have incurred and expect to incur significant costs resulting from the 2022 and 2023 Restructuring Plans. See Note 6 for additional information on the effect on our Condensed Consolidated Financial Statements.
Basis of Presentation and Principles of Consolidation	Basis of Presentation and Principles of Consolidation Our Condensed Consolidated Financial Statements include the financial position, results of operations and cash flows of Nektar Therapeutics and our wholly-owned subsidiaries. We have eliminated all intercompany accounts and transactions in consolidation. We prepared our Condensed Consolidated Financial Statements following the requirements of the Securities and Exchange Commission (SEC) for interim reporting. As permitted under those rules, we may condense or omit certain footnotes or other financial information that are normally required by U.S. generally accepted accounting principles (GAAP) for annual periods. In the opinion of management, these financial statements include all normal and recurring adjustments that we consider necessary for the fair presentation of our financial position and operating results. Our Condensed Consolidated Financial Statements are denominated in U.S. dollars. Accordingly, changes in exchange rates between the applicable foreign currency and the U.S. dollar will affect the translation of each foreign subsidiary’s financial results into U.S. dollars for purposes of reporting our consolidated financial results. We include translation gains and losses in accumulated other comprehensive loss in the stockholders’ equity section of our Condensed Consolidated Balance Sheets. Our comprehensive loss consists of our net loss plus our foreign currency translation gains and losses and unrealized gains and losses on available-for-sale securities. There were no significant reclassifications out of accumulated other comprehensive loss to the statements of operations during the three and six months ended June 30, 2023 and 2022 except as otherwise disclosed below in Note 3. The accompanying Condensed Consolidated Financial Statements are unaudited. The Condensed Consolidated Balance Sheet data as of December 31, 2022 was derived from the audited consolidated financial statements which are included in our Annual Report on Form 10-K for the year ended December 31, 2022 filed with the SEC on February 28, 2023. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the consolidated financial statements and the accompanying notes to those financial statements. Revenue, expenses, assets, and liabilities can vary during each quarter of the year. The results and trends in these interim Condensed Consolidated Financial Statements are not necessarily indicative of the results to be expected for the full year or any other period.
Use of Estimates	Use of Estimates The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Accounting estimates and assumptions are inherently uncertain. Actual results could differ materially from those estimates and assumptions. As appropriate, we assess estimates each period, update them to reflect current information, and generally reflect any changes in estimates in the period first identified.
Significant Concentrations	Significant ConcentrationsOur customers are primarily pharmaceutical companies that are located in the U.S. and Europe and with whom we have multi-year arrangements. Our accounts receivable balance contains billed and unbilled trade receivables from product sales, milestones (to the extent that they have been achieved and are due from the counterparty), and other contingent payments, as well as reimbursable costs from collaborative research and development agreements. We are dependent on our suppliers and contract manufacturers to provide raw materials and drugs of appropriate quality and reliability and to meet applicable contract and regulatory requirements. In certain cases, we rely on single sources of supply of one or more critical materials. Consequently, in the event that supplies are delayed or interrupted for any reason, our ability to develop and produce our drug candidates, our ability to supply comparator drugs for our clinical trials, or our ability to meet our supply obligations could be significantly impaired, which could have a material adverse effect on our business, financial condition and results of operations. For our available-for-sale securities, we have significant concentrations of issuers in the banking and financial services industries. While our investment policy requires that we only invest in highly-rated securities and limit our exposure to any single issuer, various factors may materially affect the financial condition of issuers. Additionally, pursuant to our investment policy, we may sell securities before maturity if the issuer’s credit rating has been downgraded below our minimum credit rating requirements, which may result in a loss on the sale. Accordingly, if various factors result in downgrades below our minimum credit rating requirements and if we decide to sell these securities, we may experience losses on such sales.
Restructuring	Restructuring We recognize restructuring charges related to reorganization plans that have been committed to by management when liabilities have been incurred. In connection with these activities, we record restructuring charges at fair value for: •contractual or other employee termination benefits provided that the obligations result from services already rendered based on rights that vest or accumulated when the payment of benefits becomes probable and the amount can be reasonably estimated, •one-time employee termination benefits on the communication date from management to the employees provided that management has committed to a plan of termination, the plan identifies the employees and their expected termination dates, the details of termination benefits are complete, and it is unlikely that changes to the plan will be made or the plan will be withdrawn, •contract termination costs when we cancel the contract in accordance with its terms, and •costs to be incurred over the remaining contract term without economic benefit to us at the cease-use date. For one-time employee terminations benefits, we recognize the liability in full on the communication date when future services are not required or amortize the liability ratably over the service period, if required. The fair value of termination benefits reflects our estimates of expected utilization of certain Company-funded post-employment benefits. See Note 6 for additional information on the severance expense that we recognized for employees terminated in connection with our reductions-in-force.
Impairment of Goodwill	Impairment of Goodwill Goodwill is assessed for impairment on an annual basis and whenever events and circumstances indicate that it may be impaired. Factors that may indicate potential impairment and trigger an impairment test include, but are not limited to, current economic, market and geopolitical conditions, including a significant, sustained decline in our stock price and market capitalization compared to the net book value; an adverse change in legal factors, business climate or operational performance of the business; or significant changes in the ability of the reporting unit to generate positive cash flows for our strategic business objectives. If the carrying value of the reporting unit, including goodwill, exceeds the reporting unit’s fair value, we will recognize a goodwill impairment loss, and we will write down goodwill such that the carrying value of the reporting unit equals its fair value, provided that we cannot reduce goodwill below zero. See Note 6 for additional information regarding the impairment charges we recorded in connection with our goodwill.
Long-Lived Asset Impairment	Long-Lived Asset Impairment We assess the impairment of long-lived assets whenever events or changes in business circumstances indicate that the carrying amounts of the assets may not be fully recoverable. In the case of property, plant and equipment and right-of-use assets for our leases, we determine whether there has been an impairment by comparing the carrying value of the asset to the anticipated undiscounted net cash flows associated with the asset. If such cash flows are less than the carrying value, we write down the asset to its fair value, which may be measured as anticipated net cash flows associated with the asset, discounted at a rate that we believe a market participant would utilize to reflect the risks associated with the cash flows, such as credit risk. See Note 6 for additional information regarding the impairment charges we recorded in connection with our leased facilities and certain property and equipment.
Net Loss per Share	Net Loss per Share For all periods presented in the Condensed Consolidated Statements of Operations, the net loss available to common stockholders is equal to the reported net loss. We calculate basic net loss per share based on the weighted-average number of common shares outstanding during the periods presented. For the three and six months ended June 30, 2023 and 2022, basic and diluted net loss per share are the same due to our net losses and the requirement to exclude potentially dilutive securities which would have an antidilutive effect on net loss per share.
Inventory	We value inventory at the lower of cost or net realizable value, and we write down defective or excess inventory to net realizable value based on historical experience or projected usage. We expense inventory related to our research and development activities as manufactured by us or when purchased.

Stock-Based Compensation (Tables)

6 Months Ended

Jun. 30, 2023

Share-Based Payment Arrangement [Abstract]

Schedule of Stock-Based Compensation Expense

We recognized total stock-based compensation expense in our Condensed Consolidated Statements of Operations as follows (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Cost of goods sold	$	801	$	649	$	1,613	$	1,317
Research and development	3,759		4,751		7,905		16,793
General and administrative	3,406		4,781		8,467		13,032
Restructuring, impairment and other costs of terminated program	—		922		—		922
Total stock-based compensation	$	7,966	$	11,103	$	17,985	$	32,064

Commitments and Contingencies	6 Months Ended
Commitments and Contingencies	Jun. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Legal Matters From time to time, we are involved in lawsuits, arbitrations, claims, investigations and proceedings, consisting of intellectual property, commercial, employment and other matters, which arise in the ordinary course of business. We make provisions for liabilities when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Such provisions are reviewed at least quarterly and adjusted to reflect the impact of settlement negotiations, judicial and administrative rulings, advice of legal counsel, and other information and events pertaining to a particular case. Litigation is inherently unpredictable. If any unfavorable ruling were to occur in any specific period, there exists the possibility of a material adverse impact on the results of our operations for that period and on our cash flows and liquidity. On May 2, 2023, we and our directors were named in a putative class action complaint filed in the Court of Chancery of the State of Delaware. The plaintiff in this complaint alleges section 13 of our bylaws relating to stockholder action without meeting violates Delaware law and is therefore void. On July 21, 2023, pursuant to an order by the Court of Chancery, all claims in the complaint were voluntarily dismissed with prejudice against the plaintiff. On August 7, 2023, we filed a complaint in the United States District Court for the Northern District of California against Lilly alleging, among other claims, breach of contract and breach of implied covenant of good faith and fair dealing, in connection with our collaboration with Lilly. We have recorded no liability for any litigation matters in our Consolidated Balance Sheets at either June 30, 2023 or December 31, 2022. Indemnifications in Connection with Commercial Agreements As part of our collaboration agreements with our partners related to the license, development, manufacture and supply of drugs and PEGylation materials based on our proprietary technologies and drug candidates, we generally agree to defend, indemnify and hold harmless our partners from and against third party liabilities arising out of the agreement, including product liability (with respect to our activities) and infringement of intellectual property to the extent the intellectual property is developed by us and licensed to our partners. The term of these indemnification obligations is generally perpetual commencing after execution of the agreement. There is generally no limitation on the potential amount of future payments we could be required to make under these indemnification obligations. From time to time, we enter into other strategic agreements such as divestitures and financing transactions pursuant to which we are required to make representations and warranties and undertake to perform or comply with certain covenants. For example, we made certain intellectual property representations in connection with our RPI and HCR transactions, however, the time limitation we have to indemnify RPI with respect to any breach of these intellectual property-based representations and warranties has passed. In the event it is determined that we breached certain of the representations and warranties or covenants made by us in any such agreements or certain express indemnification provisions are applicable, we could incur substantial indemnification liabilities depending on the timing, nature, and amount of any such claims. To date, we have not incurred any costs to defend lawsuits or settle claims related to these indemnification obligations, nor any breaches of representations or warranties or covenants. Because the aggregate amount of any potential indemnification obligation is not a stated amount, we cannot reasonably estimate the overall maximum amount of any such obligations.

Condensed Consolidated Financial Statement Details

6 Months Ended

Jun. 30, 2023

Inventory Disclosure [Abstract]

Condensed Consolidated Financial Statement Details

Inventory

Inventory consists of the following (in thousands):


	June 30, 2023		December 31, 2022
Raw materials	$	2,045	$	2,575
Work-in-process	12,879		10,749
Finished goods	5,765		5,878
Total inventory	$	20,689	$	19,202

We manufacture finished goods inventory upon receipt of firm purchase orders, and we may manufacture certain intermediate work-in-process materials and purchase raw materials based on purchase forecasts from our collaboration partners. We include direct materials, direct labor, and manufacturing overhead in inventory and determine cost on a first-in, first-out basis for raw materials and on a specific identification basis for work-in-process and finished goods. We value inventory at the lower of cost or net realizable value, and we write down defective or excess inventory to net realizable value based on historical experience

or projected usage. We expense inventory related to our research and development activities as manufactured by us or when purchased.

Other Current Assets

Other current assets consist of the following (in thousands):


	June 30, 2023		December 31, 2022
Prepaid research and development expenses	$	3,265	$	7,398
Other prepaid expenses	3,804		5,987
Non-trade receivables and other	2,533		2,423
Total other current assets	$	9,602	$	15,808

Property, Plant and Equipment

Property, plant and equipment consists of the following (in thousands):


	June 30, 2023		December 31, 2022
Building and leasehold improvements	$	62,526	$	74,889
Computer equipment and computer software	24,623		26,205
Manufacturing equipment	25,404		25,052
Laboratory equipment	13,109		24,243
Furniture, fixtures and other	4,068		4,263
Depreciable property, plant and equipment at cost	129,730		154,652
Less: accumulated depreciation	(107,637)		(124,731)
Depreciable property, plant and equipment, net	22,093		29,921
Construction in process	461		2,530
Property, plant and equipment, net	$	22,554	$	32,451

As a result of the sustained decrease in the fair value of our single reporting unit during the three months ended March 31, 2023 and due to the weakening lease markets during the three months ended June 30, 2023, we recorded non-cash impairment charges of $1.6 million and $5.1 million for property, plant and equipment for the three and six months ended June 30, 2023, respectively, which we report in restructuring, impairment and costs of terminated program in our Condensed Consolidated Statement of Operations. See Note 6 for additional information.

Goodwill

The following is a reconciliation of the changes in our goodwill for the six months ended June 30, 2023 (in thousands):


	Six months ended June 30, 2023
Goodwill – beginning balance	$	76,501
Impairment of goodwill	(76,501)
Goodwill – ending balance	$	—

As a result of the decrease in the fair value of our single reporting unit during the three months ended March 31, 2023, we recorded a non-cash goodwill impairment charge of $76.5 million, which we report as impairment of goodwill in our Condensed Consolidated Statement of Operations. We had previously recognized goodwill primarily from our acquisitions of Shearwater Corp. and Aerogen, Inc. in 2001 and 2005, respectively. See Note 6 for additional information.

Accrued Expenses

Accrued expenses consist of the following (in thousands):


	June 30, 2023		December 31, 2022
Accrued compensation	$	10,670	$	9,582
Accrued clinical trial expenses	5,517		12,262
Liability to collaboration partners	4,472		3,808
Accrued contract termination costs	3,084		3,902
Other accrued expenses	5,399		7,003
Total accrued expenses	$	29,142	$	36,557

Liabilities Related to the Sales of Future Royalties

In 2012 and 2020, we sold to RPI Finance Trust (RPI) and entities managed by Healthcare Royalty Management, LLC (collectively, HCR), respectively, our rights to receive royalties under our license and manufacturing agreements with certain pharmaceutical partners under the 2012 Purchase and Sale Agreement and the 2020 Purchase and Sale Agreement, respectively. We account for these transactions as debt and recognize non-cash royalty revenue and non-cash interest expense to amortize the proceeds over the lives of the respective arrangements. We periodically update our prospective non-cash interest rate based on our estimates of future royalties. As of June 30, 2023, our imputed interest rates for the arrangements with RPI and HCR were 10% and 20%, respectively.

The following is a reconciliation of the changes in our liabilities related to the sales of future royalties for the six months ended June 30, 2023 (in thousands):


	Six Months Ended June 30, 2023
	2012 Purchase and Sale Agreement		2020 Purchase and Sale Agreement		Total
Liabilities related to the sales of future royalties, net – beginning balance	$	55,167	$	100,211	$	155,378
Non-cash royalty revenue	(17,496)		(15,197)		(32,693)
Non-cash interest expense	2,538		10,019		12,557
Amortization of transaction costs	—		417		417
Liabilities related to the sales of future royalties, net – ending balance	$	40,209	$	95,450	$	135,659

Accumulated Other Comprehensive Income (Loss)

The following table summarizes the changes in accumulated other comprehensive income (loss) by component (in thousands):


	Foreign currency translation		Available-for-sale securities		Accumulated Other Comprehensive Income
Balance at December 31, 2022	$	(5,131)	$	(1,776)	$	(6,907)
Foreign currency translation adjustments	139		—		139
Unrealized gain on available-for-sale securities	—		1,087		1,087
Balance at March 31, 2023	$	(4,992)	$	(689)	$	(5,681)
Foreign currency translation adjustments	13		—		13
Unrealized gain on available-for-sale securities	—		244		244
Reclassification adjustments to income	(1,026)		—		(1,026)
Balance at June 30, 2023	$	(6,005)	$	(445)	$	(6,450)

The reclassification from accumulated other comprehensive loss relates to the closure of one of our foreign subsidiaries and has been included within interest income and other income (expense), net in our Condensed Consolidated Statement of Operations.

Condensed Consolidated Financial Statement Details - Schedule of Property, Plant and Equipment (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Property, Plant and Equipment [Line Items]
Depreciable property, plant and equipment at cost	$ 129,730	$ 154,652
Less: accumulated depreciation	(107,637)	(124,731)
Depreciable property, plant and equipment, net	22,093	29,921
Construction in process	461	2,530
Property, plant and equipment, net	22,554	32,451
Building and leasehold improvements
Property, Plant and Equipment [Line Items]
Depreciable property, plant and equipment at cost	62,526	74,889
Computer equipment and computer software
Property, Plant and Equipment [Line Items]
Depreciable property, plant and equipment at cost	24,623	26,205
Manufacturing equipment
Property, Plant and Equipment [Line Items]
Depreciable property, plant and equipment at cost	25,404	25,052
Laboratory equipment
Property, Plant and Equipment [Line Items]
Depreciable property, plant and equipment at cost	13,109	24,243
Furniture, fixtures and other
Property, Plant and Equipment [Line Items]
Depreciable property, plant and equipment at cost	$ 4,068	$ 4,263

Organization and Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization and Summary of Significant Accounting Policies

Organization

We are a research-based biopharmaceutical company headquartered in San Francisco, California and incorporated in Delaware. We (individually or with a partner) are developing a pipeline of drug candidates that utilize our advanced polymer conjugate technology platforms, which are designed to enable the development of new molecular entities that target known mechanisms of action. Our research and development pipeline of new investigational drugs includes investigational treatments in the field of immunotherapy.

Our research and development activities have required significant ongoing investment to date and are expected to continue to require significant investment. As a result, we expect to continue to incur substantial losses and negative cash flows from operations in the future. We have financed our operations primarily through cash generated from licensing, collaboration and manufacturing agreements and financing transactions. As of June 30, 2023, we had approximately $409.4 million in cash and investments in marketable securities.

Results of Clinical Trial Programs and the Restructuring Plans

In March and April 2022, we announced that our registrational trials of bempegaldesleukin in combination with Opdivo® in metastatic melanoma, renal cell carcinoma and locally advanced or metastatic urothelial cancer under our Strategic Collaboration Agreement (BMS Collaboration Agreement) with Bristol-Myers Squibb Company (BMS) did not meet their primary endpoints. Based on these results, in April 2022, we announced our decisions to discontinue all development of bempegaldesleukin in combination with checkpoint inhibitors, including these trials, our registrational trial in adjuvant melanoma under our BMS Collaboration Agreement, and our Phase 2/3 study of bempegaldesleukin in combination with Keytruda® in squamous cell cancer of the head and neck under our Co-Development Agreement with SFJ Pharmaceuticals. See Note 5 for additional information regarding our BMS Collaboration Agreement and Co-Development Agreement with SFJ Pharmaceuticals. Pursuant to the BMS Collaboration Agreement, we and BMS continue our efforts to wind down the bempegaldesleukin program.

In April 2022, we also announced new strategic reorganization and cost restructuring plans (together, the 2022 Restructuring Plan), pursuant to which we completed an approximately 70% reduction of our workforce during 2022 and sold our research facility in India in December 2022.

On February 23, 2023, we announced the topline data from the Phase 2 study of rezpegaldesleukin in adult patients with systemic lupus erythematosus (SLE) (Phase 2 Lupus Study) under our collaboration agreement with Eli Lilly and Company (Lilly). Lilly notified us that it does not intend to advance rezpegaldesleukin into Phase 3 development for SLE. On April 27, 2023, we announced that we would be regaining the full rights to rezpegaldesleukin from Lilly, and the collaboration agreement has subsequently terminated. We are initiating a Phase 2b study of rezpegaldesleukin in patients with moderate-to-severe atopic dermatitis in 2023. We will also explore other auto-immune indications for the development of rezpegaldesleukin.

On August 7, 2023, we announced that the efficacy data previously generated by Lilly for rezpegaldesleukin that were presented at the European Academy of Dermatology and Venereolgy (EADV) conference in September 2022 were incorrectly calculated by Lilly. The erroneous data were reported in connection with the Phase 1b study of rezpegaldesleukin in adult patients with atopic dermatitis (Phase 1b AD Study) and the Phase 1b study of rezpegaldesleukin in adult patients with psoriasis. We reported that the new and corrected data from the Phase 1b AD Study demonstrate that 12 weeks of rezpegaldesleukin at the 24 µg/kg dose resulted in a mean Eczema Area Severity Index (EASI) score improvement of 83% with a p-value of 0.002 as compared to placebo and an EASI-75 response rate of 41%.

Pursuant to plans approved by our Board of Directors (the Board) on March 29, 2023, we announced on April 17, 2023, a new strategic reprioritization and cost restructuring plan (the 2023 Restructuring Plan). Under the 2023 Restructuring Plan, we are reducing our San Francisco-based workforce by approximately 60%, which was substantially completed by June 2023.

We have incurred and expect to incur significant costs resulting from the 2022 and 2023 Restructuring Plans. See Note 6 for additional information on the effect on our Condensed Consolidated Financial Statements.

Basis of Presentation and Principles of Consolidation

Our Condensed Consolidated Financial Statements include the financial position, results of operations and cash flows of Nektar Therapeutics and our wholly-owned subsidiaries. We have eliminated all intercompany accounts and transactions in consolidation.

We prepared our Condensed Consolidated Financial Statements following the requirements of the Securities and Exchange Commission (SEC) for interim reporting. As permitted under those rules, we may condense or omit certain footnotes or other financial information that are normally required by U.S. generally accepted accounting principles (GAAP) for annual periods. In the opinion of management, these financial statements include all normal and recurring adjustments that we consider necessary for the fair presentation of our financial position and operating results.

Our Condensed Consolidated Financial Statements are denominated in U.S. dollars. Accordingly, changes in exchange rates between the applicable foreign currency and the U.S. dollar will affect the translation of each foreign subsidiary’s financial results into U.S. dollars for purposes of reporting our consolidated financial results. We include translation gains and losses in accumulated other comprehensive loss in the stockholders’ equity section of our Condensed Consolidated Balance Sheets.

Our comprehensive loss consists of our net loss plus our foreign currency translation gains and losses and unrealized gains and losses on available-for-sale securities. There were no significant reclassifications out of accumulated other comprehensive loss to the statements of operations during the three and six months ended June 30, 2023 and 2022 except as otherwise disclosed below in Note 3.

The accompanying Condensed Consolidated Financial Statements are unaudited. The Condensed Consolidated Balance Sheet data as of December 31, 2022 was derived from the audited consolidated financial statements which are included in our Annual Report on Form 10-K for the year ended December 31, 2022 filed with the SEC on February 28, 2023. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the consolidated financial statements and the accompanying notes to those financial statements.

Revenue, expenses, assets, and liabilities can vary during each quarter of the year. The results and trends in these interim Condensed Consolidated Financial Statements are not necessarily indicative of the results to be expected for the full year or any other period.

Use of Estimates

The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Accounting estimates and assumptions are inherently uncertain.

Actual results could differ materially from those estimates and assumptions. As appropriate, we assess estimates each period, update them to reflect current information, and generally reflect any changes in estimates in the period first identified.

Significant Concentrations

Our customers are primarily pharmaceutical companies that are located in the U.S. and Europe and with whom we have multi-year arrangements. Our accounts receivable balance contains billed and unbilled trade receivables from product sales, milestones (to the extent that they have been achieved and are due from the counterparty), and other contingent payments, as well as reimbursable costs from collaborative research and development agreements. We generally do not require collateral from our customers. We perform a regular review of our customers’ credit risk and payment histories, including payments made after period end. Historically, we have not experienced credit losses from our accounts receivable. We have not recorded reserves for credit losses for the three and six months ended June 30, 2023 and 2022, nor have recorded such an allowance as of June 30, 2023 or December 31, 2022.

We are dependent on our suppliers and contract manufacturers to provide raw materials and drugs of appropriate quality and reliability and to meet applicable contract and regulatory requirements. In certain cases, we rely on single sources of supply of one or more critical materials. Consequently, in the event that supplies are delayed or interrupted for any reason, our ability to develop and produce our drug candidates, our ability to supply comparator drugs for our clinical trials, or our ability to meet our supply obligations could be significantly impaired, which could have a material adverse effect on our business, financial condition and results of operations.

For our available-for-sale securities, we have significant concentrations of issuers in the banking and financial services industries. While our investment policy requires that we only invest in highly-rated securities and limit our exposure to any single issuer, various factors may materially affect the financial condition of issuers. Additionally, pursuant to our investment policy, we

may sell securities before maturity if the issuer’s credit rating has been downgraded below our minimum credit rating requirements, which may result in a loss on the sale. Accordingly, if various factors result in downgrades below our minimum credit rating requirements and if we decide to sell these securities, we may experience losses on such sales.

Restructuring

We recognize restructuring charges related to reorganization plans that have been committed to by management when liabilities have been incurred. In connection with these activities, we record restructuring charges at fair value for:

•contractual or other employee termination benefits provided that the obligations result from services already rendered based on rights that vest or accumulated when the payment of benefits becomes probable and the amount can be reasonably estimated,

•one-time employee termination benefits on the communication date from management to the employees provided that management has committed to a plan of termination, the plan identifies the employees and their expected termination dates, the details of termination benefits are complete, and it is unlikely that changes to the plan will be made or the plan will be withdrawn,

•contract termination costs when we cancel the contract in accordance with its terms, and

•costs to be incurred over the remaining contract term without economic benefit to us at the cease-use date.

For one-time employee terminations benefits, we recognize the liability in full on the communication date when future services are not required or amortize the liability ratably over the service period, if required. The fair value of termination benefits reflects our estimates of expected utilization of certain Company-funded post-employment benefits.

See Note 6 for additional information on the severance expense that we recognized for employees terminated in connection with our reductions-in-force.

Impairment of Goodwill

Goodwill is assessed for impairment on an annual basis and whenever events and circumstances indicate that it may be impaired. Factors that may indicate potential impairment and trigger an impairment test include, but are not limited to, current economic, market and geopolitical conditions, including a significant, sustained decline in our stock price and market capitalization compared to the net book value; an adverse change in legal factors, business climate or operational performance of the business; or significant changes in the ability of the reporting unit to generate positive cash flows for our strategic business objectives. If the carrying value of the reporting unit, including goodwill, exceeds the reporting unit’s fair value, we will recognize a goodwill impairment loss, and we will write down goodwill such that the carrying value of the reporting unit equals its fair value, provided that we cannot reduce goodwill below zero.

See Note 6 for additional information regarding the impairment charges we recorded in connection with our goodwill.

Long-Lived Asset Impairment

We assess the impairment of long-lived assets whenever events or changes in business circumstances indicate that the carrying amounts of the assets may not be fully recoverable. In the case of property, plant and equipment and right-of-use assets for our leases, we determine whether there has been an impairment by comparing the carrying value of the asset to the anticipated undiscounted net cash flows associated with the asset. If such cash flows are less than the carrying value, we write down the asset to its fair value, which may be measured as anticipated net cash flows associated with the asset, discounted at a rate that we believe a market participant would utilize to reflect the risks associated with the cash flows, such as credit risk.

See Note 6 for additional information regarding the impairment charges we recorded in connection with our leased facilities and certain property and equipment.

Net Loss per Share

For all periods presented in the Condensed Consolidated Statements of Operations, the net loss available to common stockholders is equal to the reported net loss. We calculate basic net loss per share based on the weighted-average number of common shares outstanding during the periods presented. For the three and six months ended June 30, 2023 and 2022, basic and diluted net loss per share are the same due to our net losses and the requirement to exclude potentially dilutive securities which would have an antidilutive effect on net loss per share. We excluded shares underlying the weighted average outstanding stock options, restricted stock units (RSUs) and performance stock units (PSUs), as follows (in thousands):


	Three Months Ended June 30,		Six Months Ended June 30,
	2023	2022	2023	2022
Potentially dilutive securities	21,317	20,543	22,049	21,435

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($) shares in Thousands, $ in Thousands	Total	Common Shares	Capital in Excess of Par Value	Accumulated Other Comprehensive Loss	Accumulated Deficit
Beginning balance (in shares) at Dec. 31, 2021		185,468
Beginning balance at Dec. 31, 2021	$ 679,508	$ 19	$ 3,516,641	$ (4,157)	$ (2,832,995)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Shares issued under equity compensation plans (in shares)		806
Shares issued under equity compensation plans	188		188
Stock-based compensation	20,961		20,961
Comprehensive income (loss)	(92,768)			(2,375)	(90,393)
Ending balance (in shares) at Mar. 31, 2022		186,274
Ending balance at Mar. 31, 2022	607,889	$ 19	3,537,790	(6,532)	(2,923,388)
Beginning balance (in shares) at Dec. 31, 2021		185,468
Beginning balance at Dec. 31, 2021	679,508	$ 19	3,516,641	(4,157)	(2,832,995)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Comprehensive income (loss)	(253,495)
Ending balance (in shares) at Jun. 30, 2022		187,405
Ending balance at Jun. 30, 2022	458,732	$ 19	3,549,360	(8,191)	(3,082,456)
Beginning balance (in shares) at Mar. 31, 2022		186,274
Beginning balance at Mar. 31, 2022	607,889	$ 19	3,537,790	(6,532)	(2,923,388)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Shares issued under equity compensation plans (in shares)		1,131
Shares issued under equity compensation plans	467		467
Stock-based compensation	11,103		11,103
Comprehensive income (loss)	(160,727)			(1,659)	(159,068)
Ending balance (in shares) at Jun. 30, 2022		187,405
Ending balance at Jun. 30, 2022	$ 458,732	$ 19	3,549,360	(8,191)	(3,082,456)
Beginning balance (in shares) at Dec. 31, 2022	188,560	188,560
Beginning balance at Dec. 31, 2022	$ 366,638	$ 19	3,574,719	(6,907)	(3,201,193)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Shares issued under equity compensation plans (in shares)		675
Shares issued under equity compensation plans	0		0
Stock-based compensation	10,019		10,019
Comprehensive income (loss)	(135,792)			1,226	(137,018)
Ending balance (in shares) at Mar. 31, 2023		189,235
Ending balance at Mar. 31, 2023	$ 240,865	$ 19	3,584,738	(5,681)	(3,338,211)
Beginning balance (in shares) at Dec. 31, 2022	188,560	188,560
Beginning balance at Dec. 31, 2022	$ 366,638	$ 19	3,574,719	(6,907)	(3,201,193)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Comprehensive income (loss)	$ (187,683)
Ending balance (in shares) at Jun. 30, 2023	190,119	190,119
Ending balance at Jun. 30, 2023	$ 196,958	$ 19	3,592,722	(6,450)	(3,389,333)
Beginning balance (in shares) at Mar. 31, 2023		189,235
Beginning balance at Mar. 31, 2023	240,865	$ 19	3,584,738	(5,681)	(3,338,211)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Shares issued under equity compensation plans (in shares)		884
Shares issued under equity compensation plans	18		18
Stock-based compensation	7,966		7,966
Comprehensive income (loss)	$ (51,891)			(769)	(51,122)
Ending balance (in shares) at Jun. 30, 2023	190,119	190,119
Ending balance at Jun. 30, 2023	$ 196,958	$ 19	$ 3,592,722	$ (6,450)	$ (3,389,333)

- Definition

Amount of equity (deficit) attributable to parent. Excludes temporary equity and equity attributable to noncontrolling interest.

+ References

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+ Details

Cash and Investments in Marketable Securities (Tables)

6 Months Ended

Jun. 30, 2023

Fair Value Disclosures [Abstract]

Schedule of Cash and Investments in Marketable Securities, Including Cash Equivalents

Cash and investments in marketable securities, including cash equivalents, are as follows (in thousands):


	Estimated Fair Value at
	June 30, 2023		December 31, 2022
Cash and cash equivalents	$	50,728	$	88,227
Short-term investments	358,704		416,750
Total cash and investments in marketable securities	$	409,432	$	504,977

Schedule of Portfolio of Cash and Investments in Marketable Securities

Our portfolio of cash and investments in marketable securities includes (in thousands):


	Fair Value Hierarchy Level	June 30, 2023								December 31, 2022
		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Fair Value
Corporate notes and bonds	2	$	21,466	$	—	$	(70)	$	21,396	$	83,522
Corporate commercial paper	2	304,389		—		(370)		304,019		344,204
Obligations of U.S. government agencies	2	25,792		—		(5)		25,787		—
Available-for-sale investments		$	351,647	$	—	$	(445)	$	351,202	$	427,726
Money market funds	1							38,597		47,054
Certificates of deposit	2							7,502		21,399
Cash	N/A							12,131		8,798
Total cash and investments in marketable securities								$	409,432	$	504,977

Restructuring, Impairment and Costs of Terminated Program, and Impairment of Goodwill - Summary of Restructuring Costs (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		18 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023
Restructuring Cost and Reserve [Line Items]
Impairment of other property, plant and equipment	$ 13,300	$ 57,321	$ 26,455	$ 57,321
Restructuring, impairment and costs of terminated program	16,554	106,045	37,747	107,520
2022 Restructuring Plan
Restructuring Cost and Reserve [Line Items]
Clinical trial expense, other third-party and employee costs for the wind down of the bempegaldesleukin program	1,356	20,408	2,954	20,408
Severance and benefit expense	0	27,750	0	27,750
Impairment of other property, plant and equipment	13,255	57,321	13,255	57,321
Contract termination and other restructuring costs	0	566	878	2,041	$ 11,800
Restructuring, impairment and costs of terminated program	14,611	$ 106,045	17,087	$ 107,520
2023 Restructuring Plan
Restructuring Cost and Reserve [Line Items]
Severance and benefit expense	1,943		7,426
Impairment of other property, plant and equipment	0		13,200
Contract termination and other restructuring costs	0		34
Restructuring, impairment and costs of terminated program	$ 1,943		$ 20,660

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References + Details

Organization and Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($)	1 Months Ended	3 Months Ended		6 Months Ended
	Apr. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Organization And Summary Of Significant Accounting Policies [Line Items]
Cash and investments in marketable securities		$ 409,432,000		$ 409,432,000		$ 504,977,000
Accounts receivable, credit loss expense (reversal)		$ 0	$ 0	$ 0	$ 0
Employee Severance \| 2022 Restructuring Plan
Organization And Summary Of Significant Accounting Policies [Line Items]
Workforce termination, percentage	70.00%
Employee Severance \| 2023 Restructuring Plan
Organization And Summary Of Significant Accounting Policies [Line Items]
Workforce termination, percentage				60.00%

License and Collaboration Agreements

6 Months Ended

Jun. 30, 2023

License And Collaboration Agreements [Abstract]

License and Collaboration Agreements

We have entered into various collaboration agreements including license agreements and collaborative research, development and commercialization agreements with various pharmaceutical and biotechnology companies. Under these collaboration arrangements, we are entitled to receive license fees, upfront payments, milestone and other contingent payments, royalties, sales milestone payments, and payments for the manufacture and supply of our proprietary PEGylation materials and/or reimbursement for research and development activities. We generally include our costs of performing these services in research and development expense, except for costs for product sales to our collaboration partners which we include in cost of goods sold. We analyze our agreements to determine whether we should account for the agreements within the scope of ASC 808, and, if so, we analyze whether we should account for any elements under ASC 606.

Eli Lilly and Company (Lilly): Rezpegaldesleukin (previously referred to as NKTR-358)

On July 23, 2017, we entered into a worldwide license agreement (the Lilly Agreement) with Eli Lilly and Company (Lilly) to co-develop rezpegaldesleukin, a novel immunological drug candidate that we invented, pursuant to which we received an initial payment of $150.0 million and were eligible for up to $250.0 million in additional development and regulatory

milestones. The Lilly Agreement provided that, during Phase 1B and Phase 2 development, we would share development costs wherein 75% of the costs are borne by Lilly and 25% of the costs are borne by us.

On February 23, 2023, we announced the topline data from the Phase 2 study (Phase 2 Lupus Study) of rezpegaldesleukin in adult patients with systemic lupus erythematosus (SLE). Although the Phase 2 Lupus Study did not meet its primary endpoint, patients who received the middle dose within the modified intent-to-treat population, defined as all patients who were randomized and received at least one dose of rezpegaldesleukin, demonstrated improvement in SLEDAI-2K score as compared to placebo. Nonetheless, Lilly notified us that it does not intend to advance rezpegaldesleukin into Phase 3 development for SLE.

On April 23, 2023, we received from Lilly a notice of at-will termination of the Lilly Agreement. On April 27, 2023, we announced that we would regain full rights to rezpegaldesleukin from Lilly, and the Lilly Agreement has subsequently terminated. Following the return of our rights to develop rezpegaldesleukin, we bear all costs of development. We are initiating a Phase 2b study of rezpegaldesleukin in patients with moderate-to-severe atopic dermatitis in 2023. We will also explore other auto-immune indications for the development of rezpegaldesleukin.

On August 7, 2023, we announced that the efficacy data previously generated by Lilly for rezpegaldesleukin that were presented at the EADV conference in September 2022 were incorrectly calculated by Lilly. The erroneous data were reported in connection with the Phase 1b study of rezpegaldesleukin in adult patients with atopic dermatitis (Phase 1b AD Study) and the Phase 1b study of rezpegaldesleukin in adult patients with psoriasis. We reported that the new and corrected data from the Phase 1b AD Study demonstrate that 12 weeks of rezpegaldesleukin at the 24 µg/kg dose resulted in a mean EASI score improvement of 83% with a p-value of 0.002 as compared to placebo and an EASI-75 response rate of 41%.

Bristol-Myers Squibb Company (BMS): Bempegaldesleukin, also referred to as NKTR-214

Effective April 3, 2018, we entered into a Strategic Collaboration Agreement (the BMS Collaboration Agreement) and a Share Purchase Agreement with BMS. Pursuant to the BMS Collaboration Agreement, we and BMS have jointly developed bempegaldesleukin in combination with BMS’s Opdivo®. The parties share the internal and external development costs for bempegaldesleukin in combination regimens based on each party’s relative ownership interest in the compounds included in the regimens. In accordance with the agreement, the parties share development costs for bempegaldesleukin in combination with Opdivo®, 67.5% of costs to BMS and 32.5% to Nektar. The parties share costs for the manufacturing and pre-commercial costs of bempegaldesleukin, 35% of the costs to BMS and 65% to Nektar.

Upon the effective date of the BMS Collaboration Agreement in April 2018, BMS paid us a non-refundable upfront cash payment of $1.0 billion and purchased 8,284,600 shares of our common stock pursuant to the Share Purchase Agreement for total additional cash consideration of $850.0 million. In 2020, we received additional non-refundable milestone payments of $50.0 million.

As discussed in Note 1, in April 2022, we announced that BMS and we decided to discontinue all development of bempegaldesleukin in combination with Opdivo®. The decision to terminate the program does not affect the cost-sharing provisions under the BMS Collaboration Agreement. Pursuant to the BMS Collaboration Agreement, we and BMS continue our efforts to wind down the bempegaldesleukin program.

We determined that the BMS Collaboration Agreement falls within the scope of ASC 808. Based on the cost sharing percentages described above, we recognized BMS’ reimbursement of our expenses as a reduction of research and development expense and our reimbursement of BMS’ expenses as research and development expense. As discussed in Note 6, beginning in the second quarter of 2022, we began reporting clinical trial, other third-party costs and employee costs for the wind down of the bempegaldesleukin program in restructuring, impairment and costs of terminated program. Accordingly, during the three months ended June 30, 2022, we recorded $7.6 million, as a reduction of such expense for the net reimbursement from BMS. During the six months ended June 30, 2022, we recorded $24.9 million as a reduction of research and development expense for the net reimbursement from BMS for the reimbursement recorded in the three months ended March 31, 2022. The net reimbursement payable to BMS for the three and six months ended June 30, 2023 was not significant.

SFJ Pharmaceuticals

On February 12, 2021, we entered into a Co-Development Agreement (the SFJ Agreement) with SFJ Pharmaceuticals XII, L.P., a SFJ Pharmaceuticals Group company (SFJ), pursuant to which SFJ would pay up to $150.0 million to support a Phase 2/3 study of bempegaldesleukin in combination with Keytruda® (pembrolizumab) in metastatic or unresectable recurrent squamous cell carcinoma of the head and neck (the SCCHN Clinical Trial). SFJ had primary responsibility for the clinical trial management of the SCCHN Clinical Trial, and we were the sponsor of the SCCHN Clinical Trial. The SFJ Agreement provided for us to pay up to $637.5 million in Success Payments in the event of FDA approval of bempegaldesleukin in up to three indications.

We accounted for the SFJ Agreement as a derivative liability, which we remeasured to fair value at each reporting date. We recorded increases to the liability for non-cash research and development expense as SFJ conducted the SCCHN Clinical Trial and for cash receipts from SFJ to us to support our internal costs of conducting the trial. We presented the gain (loss) from the remeasurement as change in fair value of development derivative liability in our Condensed Consolidated Statements of Operations.

At March 31, 2022, due to the negative results of the metastatic melanoma trial and initial discussions with SFJ, we concluded that it was remote that SFJ and we would continue the SCCHN Clinical Trial. Accordingly, the fair value of the development derivative liability was reduced to zero as of March 31, 2022, and we recognized a corresponding gain in change in fair value of development derivative liability. In April 2022, we announced that SFJ and we agreed to discontinue the SCCHN Clinical Trial. Accordingly, SFJ will not be entitled to any Success Payments, and SFJ has the responsibility to wind down the SCCHN Clinical Trial at its sole cost. SFJ has no right to seek reimbursement from us for any costs incurred for the SCCHN Clinical Trial.

The following table presents the change in the derivative liability for the six months ended June 30, 2022:


	Fair Value Hierarchy Level	Six Months Ended June 30, 2022
Fair value at beginning of period	3	$	27,726
Non-cash research and development expense		4,951
Cash receipts from SFJ		750
Change in the fair value of development derivative liability		(33,427)
Fair value at end of period	3	$	—

Other

We have other collaboration agreements that have resulted in commercialized products for our collaborations partners. Under these agreements, we may sell our proprietary PEGylation materials for use in these products, and we are entitled to receive royalties based on net sales of these products as well as sales milestones. As discussed in Note 3, we have sold our rights to receive royalties from these other collaboration agreements. Our non-cash royalty revenue, which totaled $16.3 million and $33.8 million for the three and six months ended June 30, 2022 and totaled $15.8 million and $32.7 million for the three and six months ended June 30, 2023, respectively, represents revenue for granting licenses which we had satisfied in prior periods.

Additionally, we have a collaboration agreement for a product under development, under which we are entitled to up to a total of $40.0 million of regulatory milestones, as well as sales milestones upon achievement of annual sales targets and royalties based on net sales of commercialized products, if any. However, given the current phase of development of the potential product under this collaboration agreement, we cannot estimate the probability or timing of achieving these milestones, and, therefore, have excluded all development milestones from the transaction price for this agreement.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Revenue:
Total revenue	$ 20,499	$ 21,585	$ 42,093	$ 46,407
Operating costs and expenses:
Cost of goods sold	6,994	5,115	14,054	10,430
Research and development	29,681	42,740	60,150	149,993
General and administrative	17,869	20,521	38,950	47,860
Restructuring, impairment and costs of terminated program	16,554	106,045	37,747	107,520
Impairment of goodwill	0	0	76,501	0
Total operating costs and expenses	71,098	174,421	227,402	315,803
Loss from operations	(50,599)	(152,836)	(185,309)	(269,396)
Non-operating income (expense):
Change in fair value of development derivative liability	0	0	0	33,427
Non-cash interest expense on liabilities related to the sales of future royalties	(6,152)	(7,228)	(12,557)	(14,757)
Interest income and other income (expense), net	5,582	1,096	9,616	1,491
Total non-operating income (expense), net	(570)	(6,132)	(2,941)	20,161
Loss before provision for income taxes	(51,169)	(158,968)	(188,250)	(249,235)
Provision (benefit) for income taxes	(47)	100	(110)	226
Net loss	$ (51,122)	$ (159,068)	$ (188,140)	$ (249,461)
Basic net loss per share (in dollars per share)	$ (0.27)	$ (0.85)	$ (0.99)	$ (1.34)
Diluted net loss per share (in dollars per share)	$ (0.27)	$ (0.85)	$ (0.99)	$ (1.34)
Weighted average shares outstanding used in computing basic net loss per share (in shares)	189,656	186,800	189,268	186,323
Weighted average shares outstanding used in computing diluted net loss per share (in shares)	189,656	186,800	189,268	186,323
Product sales
Revenue:
Total revenue	$ 4,658	$ 5,312	$ 9,376	$ 11,000
Non-cash royalty revenue related to the sales of future royalties
Revenue:
Total revenue	15,832	16,264	32,693	33,825
License, collaboration and other revenue
Revenue:
Total revenue	$ 9	$ 9	$ 24	$ 1,582

Restructuring, Impairment and Costs of Terminated Program, and Impairment of Goodwill - Restructuring Reserve Rollforward (Details) - Employee Severance - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		12 Months Ended
	Jan. 31, 2023	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022
Restructuring Reserve [Roll Forward]
Restructuring reserve, beginning balance	$ 3,299	$ 5,483	$ 3,299
Expense recognized during the period		1,943	5,483	$ 30,900
Payments during the period	(3,300)	(6,624)	(3,299)
Restructuring reserve, ending balance		802	5,483	3,299
2023 Restructuring Plan
Restructuring Reserve [Roll Forward]
Restructuring reserve, beginning balance	0	5,483	0
Expense recognized during the period		1,943	5,483
Payments during the period		(6,624)	0
Restructuring reserve, ending balance		802	5,483	0
2022 Restructuring Plan
Restructuring Reserve [Roll Forward]
Restructuring reserve, beginning balance	$ 3,299	0	3,299
Expense recognized during the period		0	0
Payments during the period		0	(3,299)
Restructuring reserve, ending balance		$ 0	$ 0	$ 3,299

Organization and Summary of Significant Accounting Policies - Weighted Average Outstanding Stock Options (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Stock Options, RSUs And PSUs
Organization And Summary Of Significant Accounting Policies [Line Items]
Potentially dilutive securities (in shares)	21,317	20,543	22,049	21,435

License and Collaboration Agreements - Fair Value of Derivative Liabilities (Details) - Fair Value, Level 3 - Development Derivative Liability $ in Thousands	6 Months Ended
	Jun. 30, 2022 USD ($)
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value at beginning of period	$ 27,726
Non-cash research and development expense	4,951
Cash receipts from SFJ	750
Change in the fair value of development derivative liability	(33,427)
Fair value at end of period	$ 0

Restructuring, Impairment and Costs of Terminated Program, and Impairment of Goodwill - Narrative (Details) - USD ($) $ in Thousands	1 Months Ended		3 Months Ended				6 Months Ended		12 Months Ended	18 Months Ended
	Jan. 31, 2023	Apr. 30, 2022	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Jun. 30, 2023
Restructuring Cost and Reserve [Line Items]
Impairment expense for facilities			$ 13,255	$ 11,500		$ 52,201	$ 24,755	$ 52,200
Impairment of other property, plant and equipment				1,700		5,120	1,700
Impairment of goodwill			0	$ 76,500		0	76,501	0
Impairment of other property, plant and equipment			13,300			57,321	26,455	57,321
Nektar 214 \| Research and Development Expense \| Bristol Myers Squibb Company
Restructuring Cost and Reserve [Line Items]
Reimbursement of expenses						7,600		24,900
Third St. Facility
Restructuring Cost and Reserve [Line Items]
Impairment expense for facilities			6,200		$ 12,000
Mission Bay Facility
Restructuring Cost and Reserve [Line Items]
Impairment expense for facilities			7,100
2022 Restructuring Plan
Restructuring Cost and Reserve [Line Items]
Contract termination and other restructuring costs			0			566	878	2,041		$ 11,800
Impairment of other property, plant and equipment			13,255			$ 57,321	13,255	$ 57,321
2023 Restructuring Plan
Restructuring Cost and Reserve [Line Items]
Contract termination and other restructuring costs			0				34
Impairment of other property, plant and equipment			$ 0				$ 13,200
Measurement Input, Market Participant Subtenant Borrowing Rate
Restructuring Cost and Reserve [Line Items]
Operating lease, measurement input				7.90%		6.40%
Sublease income, measurement input			8.50%
Employee Severance
Restructuring Cost and Reserve [Line Items]
Restructuring, impairment, and costs of terminated program			$ 1,943	$ 5,483					$ 30,900
Payments during the period	$ 3,300		6,624	3,299
Employee Severance \| 2022 Restructuring Plan
Restructuring Cost and Reserve [Line Items]
Workforce termination, percentage		70.00%
Restructuring, impairment, and costs of terminated program			0	0
Payments during the period			0	3,299
Employee Severance \| 2023 Restructuring Plan
Restructuring Cost and Reserve [Line Items]
Workforce termination, percentage							60.00%
Restructuring, impairment, and costs of terminated program			1,943	5,483
Payments during the period			$ 6,624	$ 0

Condensed Consolidated Financial Statement Details - Narrative (Details) $ in Thousands	3 Months Ended			6 Months Ended
	Jun. 30, 2023 USD ($)	Mar. 31, 2023 USD ($)	Jun. 30, 2022 USD ($)	Jun. 30, 2023 USD ($)	Jun. 30, 2022 USD ($)
Goodwill [Line Items]
Impairment of other property, plant and equipment	$ 13,300		$ 57,321	$ 26,455	$ 57,321
Impairment of goodwill	$ 0	$ 76,500	0	$ 76,501	$ 0
2012 Purchase and Sale Agreement
Goodwill [Line Items]
Royalties liability discount rate	0.10			0.10
2020 Purchase and Sale Agreement
Goodwill [Line Items]
Royalties liability discount rate	0.20			0.20
Property, Plant and Equipment
Goodwill [Line Items]
Impairment of other property, plant and equipment	$ 1,600		$ 14,492	$ 5,063

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 2: http://www.xbrl.org/2003/role/exampleRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 55
-Paragraph 24
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482548/350-20-55-24

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (g)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1A
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1A

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-2

+ Details

Cash and Investments in Marketable Securities - Additional Information (Detail) $ in Millions	Dec. 31, 2022 USD ($)
Fair Value Disclosures [Abstract]
Gross unrealized losses	$ 1.8

Condensed Consolidated Financial Statement Details - Schedule of Liability Related to Sale of Potential Future Royalties (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Liabilities related to the sales of future royalties, net – beginning balance			$ 155,378
Non-cash royalty revenue			(32,693)	$ (33,825)
Non-cash interest expense	$ 6,152	$ 7,228	12,557	$ 14,757
Amortization of transaction costs			417
Liabilities related to the sales of future royalties, net – ending balance	135,659		135,659
2012 Purchase and Sale Agreement
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Liabilities related to the sales of future royalties, net – beginning balance			55,167
Non-cash royalty revenue			(17,496)
Non-cash interest expense			2,538
Amortization of transaction costs			0
Liabilities related to the sales of future royalties, net – ending balance	40,209		40,209
2020 Purchase and Sale Agreement
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Liabilities related to the sales of future royalties, net – beginning balance			100,211
Non-cash royalty revenue			(15,197)
Non-cash interest expense			10,019
Amortization of transaction costs			417
Liabilities related to the sales of future royalties, net – ending balance	$ 95,450		$ 95,450

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 50,728	$ 88,227
Short-term investments	358,704	416,750
Accounts receivable	1,335	5,981
Inventory, net	20,689	19,202
Other current assets	9,602	15,808
Total current assets	441,058	545,968
Property, plant and equipment, net	22,554	32,451
Operating lease right-of-use assets	29,015	53,435
Goodwill	0	76,501
Other assets	1,652	2,245
Total assets	494,279	710,600
Current liabilities:
Accounts payable	2,619	12,980
Accrued expenses	29,142	36,557
Operating lease liabilities, current portion	18,933	18,667
Total current liabilities	50,694	68,204
Operating lease liabilities, less current portion	105,817	112,829
Liabilities related to the sales of future royalties, net	135,659	155,378
Other long-term liabilities	5,151	7,551
Total liabilities	297,321	343,962
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.0001 par value; 10,000 shares authorized; no shares designated or outstanding at June 30, 2023 or December 31, 2022, respectively	0	0
Common stock, $0.0001 par value; 300,000 shares authorized; 190,119 shares and 188,560 shares issued and outstanding at June 30, 2023 and December 31, 2022, respectively	19	19
Capital in excess of par value	3,592,722	3,574,719
Accumulated other comprehensive loss	(6,450)	(6,907)
Accumulated deficit	(3,389,333)	(3,201,193)
Total stockholders’ equity	196,958	366,638
Total liabilities and stockholders’ equity	$ 494,279	$ 710,600

Restructuring, Impairment and Costs of Terminated Program, and Impairment of Goodwill

6 Months Ended

Jun. 30, 2023

Restructuring and Related Activities [Abstract]

Restructuring, Impairment and Costs of Terminated Program, and Impairment of Goodwill

Restructuring, Impairment and Costs of Terminated Program

In connection with our 2022 and 2023 Restructuring Plans, we report the following costs in restructuring, impairment and costs of terminated program:

•Clinical trial expense, other third-party costs and employee costs for the wind down of the bempegaldesleukin program, net of the reimbursement from BMS, initiated in 2022;

•Severance and related benefit costs pursuant to the 2022 and 2023 Restructuring Plans;

•Non-cash impairment of right-of-use assets and property, plant and equipment; and

•Contract termination and other costs associated with these plans.

In prior periods through March 31, 2022, we reported the clinical trial costs, other third-party costs and employee costs related to the bempegaldesleukin program primarily in research and development expense. Beginning in the second quarter of

2022, we began reporting clinical trial, other third-party costs and employee costs for the wind down of the bempegaldesleukin program in restructuring, impairment and costs of terminated program.

2022 Restructuring Plan

As discussed in Note 1, because our registrational trials in bempegaldesleukin did not meet their primary endpoints, we decided to discontinue all development of bempegaldesleukin and wind down the clinical trials studying bempegaldesleukin. In April 2022, we announced the 2022 Restructuring Plan pursuant to which we completed an approximate 70% reduction of our workforce during 2022. We also sold our research facility in India in December 2022 and decided to sublease certain of our leased premises in San Francisco, CA, including our office leased space on Third St. and portions of our office and laboratory space on Mission Bay Blvd. South.

Restructuring, impairment and other costs of terminated program pertaining to the 2022 Restructuring Plan includes the following (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Clinical trial expense, other third-party and employee costs for the wind down of the bempegaldesleukin program	$	1,356	$	20,408	$	2,954	$	20,408
Severance and benefits expense	—		27,750		—		27,750
Impairment of right-of-use assets and property, plant and equipment	13,255		57,321		13,255		57,321
Contract termination and other restructuring costs	—		566		878		2,041
Restructuring, impairment and costs of terminated program	$	14,611	$	106,045	$	17,087	$	107,520

The clinical trial expense, other third-party and employee costs for the wind down of the bempegaldesleukin program for the three and six months ended June 30, 2022 includes a reduction of $7.6 million for the net reimbursement from BMS. The net reimbursement payable to BMS for the three and six months ended June 30, 2023 was not significant.

As further described below, the impairment charge in the three and six months ended June 30, 2022, includes $52.2 million for the impairment of spaces we planned to sublease under the 2022 Restructuring Plan, primarily for our office lease space on Third St. As the San Francisco office lease market has continued to deteriorate over the past year, we have recognized additional impairment charges for the Third St. space, totaling $12.0 million in the three months ended December 31, 2022, and $6.2 million in the three months ended June 30, 2023. For the portions of our office and laboratory space on Mission Bay Blvd. South that we decided to sublease, we recorded an impairment charge in the three months ended June 30, 2022, based on our initial estimates of sublease income, and an additional $7.1 million impairment charge in the three months ended June 30, 2023 due to the weakening life sciences sublease market.

Through June 30, 2023, we have recognized $11.8 million cumulatively for contract termination and other costs for the 2022 Restructuring Plan.

2023 Restructuring Plan

As discussed in Note 1, pursuant to plans approved by our Board in March 2023, we announced the 2023 Restructuring Plan to further reduce our San Francisco-based workforce by approximately 60%, which was substantially completed by June 30, 2023.

Restructuring, impairment and other costs of terminated program pertaining to the 2023 Restructuring Plan includes the following (in thousands):


	Three Months Ended June 30, 2023		Six Months Ended June 30, 2023
Severance and benefit expense	$	1,943	$	7,426
Impairment of right-of-use assets and property, plant and equipment	—		13,200
Contract termination and other restructuring costs	—		34
Restructuring, impairment and costs of terminated program	$	1,943	$	20,660

Severance and Benefit Expense

Employees affected by the reduction in force under the 2022 and 2023 Restructuring Plans are entitled to receive severance payments and certain Company funded benefits. The restructuring charges are recorded at fair value.

For the 2022 Restructuring Plan, we recognized severance and benefit expense in full for employees who had no requirements for future service upon approval of the 2022 Restructuring Plan by the Board in April 2022. We recognized severance and benefit expense for employees who were required to render services to receive their severance and benefits ratably over the service period. This service period began on the communication date in April 2022 and was completed for all employees during 2022. We recognized $30.9 million in total severance and benefit expense during 2022 and paid the remaining liability of $3.3 million in January 2023.

For the 2023 Restructuring Plan, we recognized a liability of $5.5 million of severance and benefit expense as of March 31, 2023, reflecting severance and benefits which the employees had vested into and for which payment was probable and reasonably estimable as of March 31, 2023. During the three months ended June 30, 2023, we recognized an additional $1.9 million of severance and benefit expense. We do not expect to recognize significant severance expense for the remainder of 2023.

The following table provides details regarding the severance and benefit expense for the three and six months ended June 30, 2023 pursuant to the 2023 Restructuring Plan and a reconciliation of the severance and benefits liability for the three and six months ended June 30, 2023 pursuant to the 2022 and 2023 Restructuring Plans, which we report within accrued expenses on our Condensed Consolidated Balance Sheet (in thousands):


	Six Months Ended June 30, 2023
	2023 Restructuring Plan		2022 Restructuring Plan		Total
Liability balance as of December 31, 2022	$	—	$	3,299	$	3,299
Expense recognized during the period	5,483		—		5,483
Payments during the period	—		(3,299)		(3,299)
Liability balance as of March 31, 2023	$	5,483	$	—	$	5,483
Expense recognized during the period	1,943		—		1,943
Payments during the period	(6,624)		—		(6,624)
Liability balance as of June 30, 2023	$	802	$	—	$	802

Impairment of Long-Lived Assets and Goodwill

In connection with our 2022 Restructuring Plan, we consolidated our operations by exiting all of the office space from our leased facility at 360 Third St. and certain laboratory and office spaces at our leased facility at 455 Mission Bay Blvd. South, both in San Francisco, CA. We have sought to sublease these spaces. We also terminated all research and development activities at our owned facility in India, which we sold in December 2022.

As a result of these plans, we reviewed each of our excess spaces for impairment during the three months ended June 30, 2022. As part of our impairment evaluation of each excess space, we separately compared the estimated undiscounted income for each sublease to the net book value of the related long-term assets, which include right-of-use assets and certain property, plant and equipment, primarily for leasehold improvements (collectively, sublease assets). We estimated sublease income using market participant assumptions, including the length of time to enter into a sublease and lease payments, which we evaluated using current real estate trends and market conditions. If such income exceeded the net book value of the related assets, we did not record an impairment charge. Otherwise, we recorded an impairment charge by reducing the net book value of the assets to their estimated fair value, which we determined by discounting the estimated sublease income using the estimated borrowing rate of a market participant subtenant, which we estimated to be 6.4%. Additionally, we recorded an impairment expense primarily for software which we planned to abandon and certain excess equipment based on the estimated income from selling such assets. We recorded impairment charges as follows (in thousands):


	Three and Six months ended June 30, 2022
	Property, Plant and Equipment		Operating Lease Right-of-Use Assets		Total
Net book value of impaired facilities before write-off	$	16,348	$	70,920	$	87,268
Less: Fair value of impaired facilities — Level 3 of Fair Value Hierarchy	(6,976)		(28,091)		(35,067)
Impairment expense for facilities	9,372		42,829		52,201
Impairment of other property, plant and equipment	5,120		—		5,120
Total impairment of right-of-use assets and property, plant and equipment	$	14,492	$	42,829	$	57,321

There were no impairment charges recognized during the three months ended March 31, 2022.

During the three months ended March 31, 2023, our stock price and resulting market capitalization experienced a significant, sustained decline. Accordingly, we assessed our long-lived assets, including our property, plant and equipment, right-of-use assets and goodwill, for impairment.

As part of our impairment analysis, we first assessed which long-lived assets have identifiable cash flows that are largely independent of the cash flows of other groups of assets.

We concluded that the long-lived assets associated with our leased spaces that we had previously decided to sublease under our 2022 Restructuring Plan continue to have cash flows that are independent of our entity-wide group. We concluded that these sublease assets, for which we had recognized impairment charges during 2022, were recoverable based on estimated sublease income, and therefore we did not record any impairment charges for these long-lived assets for the three months ended March 31, 2023.

During the three months ended March 31, 2023, we next evaluated our remaining long-lived assets for impairment and performed a recoverability test using the undiscounted cash flows approach. We concluded that our net assets were not recoverable within the remaining useful lives. Accordingly, we estimated the fair value of each asset or asset group based on discounted future cash flows of the asset or asset group using a discount rate commensurate with the related risk. For the operating lease asset related to our Mission Bay facility, we estimated the fair value based on market participant assumptions, including the length of time to enter into a sublease, sublease payments, tenant improvement allowances and broker commissions, which we evaluated using current real estate trends and market conditions. We discounted the sublease income using the estimated borrowing rate of a market participant subtenant, which we estimated to be 7.9%. As a result of this analysis, we recorded a non-cash impairment charge of $11.5 million. We also recorded an additional non-cash impairment charge of $1.7 million for certain laboratory equipment.

During the three months ended June 30, 2023, due to the weakening life sciences sublease market, we recorded a non-cash impairment charge of $7.1 million for our lease assets at our Mission Bay facility, and due to the continued depression of the office lease market, we recorded an impairment charge of $6.2 million for our lease assets at our Third. St. facility, both of which we had intended to sublease under our 2022 Restructuring Plan, based on market participant assumptions as described above. We discounted the sublease income using the estimated borrowing rate of a market participant subtenant, which we estimated to be 8.5%.

We report the aggregate non-cash impairment charge of $13.3 million and $26.5 million for the three and six months ended June 30, 2023, respectively, in restructuring, impairment and costs of terminated program in our Condensed Consolidated Statement of Operations. The following table presents a reconciliation of the non-cash impairment charges we recorded for these long-lived assets for the three and six months ended June 30, 2023 (in thousands):


	Three Months Ended June 30, 2023
	Property, Plant and Equipment		Operating Lease Right-of-Use Assets		Total
Net book value of impaired facilities before write-off	$	2,092	$	16,392	$	18,484
Less: Fair value of impaired facilities — Level 3 of Fair Value Hierarchy	(529)		(4,700)		(5,229)
Total impairment of right-of-use assets and property, plant and equipment	1,563		11,692		13,255


	Six Months Ended June 30, 2023
	Property, Plant and Equipment		Operating Lease Right-of-Use Assets		Total
Net book value of impaired facilities before write-off	$	7,206	$	44,826	$	52,032
Less: Fair value of impaired facilities — Level 3 of Fair Value Hierarchy	(3,843)		(23,434)		(27,277)
Impairment expense for facilities	3,363		21,392		24,755
Impairment of other property, plant and equipment	1,700		—		1,700
Total impairment of right-of-use assets and property, plant and equipment	$	5,063	$	21,392	$	26,455

During the three months ended March 31, 2023, due to the significant, sustained decline of our stock price and resulting market capitalization, after we recorded the non-cash impairment charges for our long-lived assets described above, we next assessed goodwill for impairment. We had previously recognized goodwill primarily from our acquisitions of Shearwater Corp. and Aerogen, Inc. in 2001 and 2005, respectively. Accordingly, in accordance with ASC 350-20 Goodwill and ASC 820-10 Fair Value Measurement, we measured the fair value of our reporting unit utilizing both income and market approaches for our entity-wide asset impairment analysis. Based on this analysis, we wrote off all of our goodwill, resulting in a non-cash impairment charge of $76.5 million during the three months ended March 31, 2023, which we reported as impairment of goodwill in our Condensed Consolidated Statements of Operations for the six months ended June 30, 2023.

License and Collaboration Agreements (Tables)

6 Months Ended

Jun. 30, 2023

License And Collaboration Agreements [Abstract]

Schedule of Derivative Liabilities at Fair Value

The following table presents the change in the derivative liability for the six months ended June 30, 2022:


	Fair Value Hierarchy Level	Six Months Ended June 30, 2022
Fair value at beginning of period	3	$	27,726
Non-cash research and development expense		4,951
Cash receipts from SFJ		750
Change in the fair value of development derivative liability		(33,427)
Fair value at end of period	3	$	—

Condensed Consolidated Financial Statement Details - Schedule of Inventory (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Inventory Disclosure [Abstract]
Raw materials	$ 2,045	$ 2,575
Work-in-process	12,879	10,749
Finished goods	5,765	5,878
Total inventory	$ 20,689	$ 19,202

Stock-Based Compensation - Additional Information (Detail)	Jun. 08, 2023 shares
2017 Performance Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate number of shares authorized (in shares)	12,000,000

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

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+ Details

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Pay vs Performance Disclosure
Net loss	$ (51,122)	$ (159,068)	$ (188,140)	$ (249,461)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

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+ Details

Stock-Based Compensation - Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation	$ 7,966	$ 11,103	$ 17,985	$ 32,064
Cost of goods sold
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation	801	649	1,613	1,317
Research and development
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation	3,759	4,751	7,905	16,793
General and administrative
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation	3,406	4,781	8,467	13,032
Restructuring, impairment and other costs of terminated program
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation	$ 0	$ 922	$ 0	$ 922

Commitments and Contingencies (Detail) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Liability for litigation	$ 0	$ 0

Cash and Investments in Marketable Securities

6 Months Ended

Jun. 30, 2023

Fair Value Disclosures [Abstract]

Cash and Investments in Marketable Securities

Cash and investments in marketable securities, including cash equivalents, are as follows (in thousands):


	Estimated Fair Value at
	June 30, 2023		December 31, 2022
Cash and cash equivalents	$	50,728	$	88,227
Short-term investments	358,704		416,750
Total cash and investments in marketable securities	$	409,432	$	504,977

Our portfolio of cash and investments in marketable securities includes (in thousands):


	Fair Value Hierarchy Level	June 30, 2023								December 31, 2022
		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Fair Value
Corporate notes and bonds	2	$	21,466	$	—	$	(70)	$	21,396	$	83,522
Corporate commercial paper	2	304,389		—		(370)		304,019		344,204
Obligations of U.S. government agencies	2	25,792		—		(5)		25,787		—
Available-for-sale investments		$	351,647	$	—	$	(445)	$	351,202	$	427,726
Money market funds	1							38,597		47,054
Certificates of deposit	2							7,502		21,399
Cash	N/A							12,131		8,798
Total cash and investments in marketable securities								$	409,432	$	504,977

For the three and six months ended June 30, 2023 and 2022, there were no transfers between Level 1 and Level 2 of the fair value hierarchy. At December 31, 2022, our gross unrealized losses totaled $1.8 million, and our gross unrealized gains were insignificant.

Restructuring, Impairment and Costs of Terminated Program, and Impairment of Goodwill (Tables)

6 Months Ended

Jun. 30, 2023

Restructuring and Related Activities [Abstract]

Schedule of Restructuring, Impairment and Other Costs of Terminated Program

Restructuring, impairment and other costs of terminated program pertaining to the 2022 Restructuring Plan includes the following (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Clinical trial expense, other third-party and employee costs for the wind down of the bempegaldesleukin program	$	1,356	$	20,408	$	2,954	$	20,408
Severance and benefits expense	—		27,750		—		27,750
Impairment of right-of-use assets and property, plant and equipment	13,255		57,321		13,255		57,321
Contract termination and other restructuring costs	—		566		878		2,041
Restructuring, impairment and costs of terminated program	$	14,611	$	106,045	$	17,087	$	107,520

Restructuring, impairment and other costs of terminated program pertaining to the 2023 Restructuring Plan includes the following (in thousands):


	Three Months Ended June 30, 2023		Six Months Ended June 30, 2023
Severance and benefit expense	$	1,943	$	7,426
Impairment of right-of-use assets and property, plant and equipment	—		13,200
Contract termination and other restructuring costs	—		34
Restructuring, impairment and costs of terminated program	$	1,943	$	20,660


	Six Months Ended June 30, 2023
	2023 Restructuring Plan		2022 Restructuring Plan		Total
Liability balance as of December 31, 2022	$	—	$	3,299	$	3,299
Expense recognized during the period	5,483		—		5,483
Payments during the period	—		(3,299)		(3,299)
Liability balance as of March 31, 2023	$	5,483	$	—	$	5,483
Expense recognized during the period	1,943		—		1,943
Payments during the period	(6,624)		—		(6,624)
Liability balance as of June 30, 2023	$	802	$	—	$	802

Additionally, we recorded an impairment expense primarily for software which we planned to abandon and certain excess equipment based on the estimated income from selling such assets. We recorded impairment charges as follows (in thousands):


	Three and Six months ended June 30, 2022
	Property, Plant and Equipment		Operating Lease Right-of-Use Assets		Total
Net book value of impaired facilities before write-off	$	16,348	$	70,920	$	87,268
Less: Fair value of impaired facilities — Level 3 of Fair Value Hierarchy	(6,976)		(28,091)		(35,067)
Impairment expense for facilities	9,372		42,829		52,201
Impairment of other property, plant and equipment	5,120		—		5,120
Total impairment of right-of-use assets and property, plant and equipment	$	14,492	$	42,829	$	57,321

The following table presents a reconciliation of the non-cash impairment charges we recorded for these long-lived assets for the three and six months ended June 30, 2023 (in thousands):


	Three Months Ended June 30, 2023
	Property, Plant and Equipment		Operating Lease Right-of-Use Assets		Total
Net book value of impaired facilities before write-off	$	2,092	$	16,392	$	18,484
Less: Fair value of impaired facilities — Level 3 of Fair Value Hierarchy	(529)		(4,700)		(5,229)
Total impairment of right-of-use assets and property, plant and equipment	1,563		11,692		13,255


	Six Months Ended June 30, 2023
	Property, Plant and Equipment		Operating Lease Right-of-Use Assets		Total
Net book value of impaired facilities before write-off	$	7,206	$	44,826	$	52,032
Less: Fair value of impaired facilities — Level 3 of Fair Value Hierarchy	(3,843)		(23,434)		(27,277)
Impairment expense for facilities	3,363		21,392		24,755
Impairment of other property, plant and equipment	1,700		—		1,700
Total impairment of right-of-use assets and property, plant and equipment	$	5,063	$	21,392	$	26,455

Condensed Consolidated Financial Statement Details - Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2023	Mar. 31, 2023
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	$ 240,865	$ 366,638
Ending balance	196,958	240,865
Accumulated Other Comprehensive Loss
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	(5,681)	(6,907)
Ending balance	(6,450)	(5,681)
Foreign currency translation
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	(4,992)	(5,131)
Adjustments	13	139
Reclassification adjustments to income	(1,026)
Ending balance	(6,005)	(4,992)
Available-for-sale securities
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	(689)	(1,776)
Adjustments	244	1,087
Ending balance	$ (445)	$ (689)

- Definition

Amount of equity (deficit) attributable to parent. Excludes temporary equity and equity attributable to noncontrolling interest.

+ References

+ Details

Condensed Consolidated Financial Statement Details (Tables)

6 Months Ended

Jun. 30, 2023

Inventory Disclosure [Abstract]

Schedule of Inventory

Inventory consists of the following (in thousands):


	June 30, 2023		December 31, 2022
Raw materials	$	2,045	$	2,575
Work-in-process	12,879		10,749
Finished goods	5,765		5,878
Total inventory	$	20,689	$	19,202

Schedule of Other Current Assets

Other current assets consist of the following (in thousands):


	June 30, 2023		December 31, 2022
Prepaid research and development expenses	$	3,265	$	7,398
Other prepaid expenses	3,804		5,987
Non-trade receivables and other	2,533		2,423
Total other current assets	$	9,602	$	15,808

Schedule of Property, Plant and Equipment

Property, plant and equipment consists of the following (in thousands):


	June 30, 2023		December 31, 2022
Building and leasehold improvements	$	62,526	$	74,889
Computer equipment and computer software	24,623		26,205
Manufacturing equipment	25,404		25,052
Laboratory equipment	13,109		24,243
Furniture, fixtures and other	4,068		4,263
Depreciable property, plant and equipment at cost	129,730		154,652
Less: accumulated depreciation	(107,637)		(124,731)
Depreciable property, plant and equipment, net	22,093		29,921
Construction in process	461		2,530
Property, plant and equipment, net	$	22,554	$	32,451

Schedule of Goodwill

The following is a reconciliation of the changes in our goodwill for the six months ended June 30, 2023 (in thousands):


	Six months ended June 30, 2023
Goodwill – beginning balance	$	76,501
Impairment of goodwill	(76,501)
Goodwill – ending balance	$	—

Schedule of Accrued Expenses

Accrued Expenses

Accrued expenses consist of the following (in thousands):


	June 30, 2023		December 31, 2022
Accrued compensation	$	10,670	$	9,582
Accrued clinical trial expenses	5,517		12,262
Liability to collaboration partners	4,472		3,808
Accrued contract termination costs	3,084		3,902
Other accrued expenses	5,399		7,003
Total accrued expenses	$	29,142	$	36,557

Schedule of Liability Related to Sale of Potential Future Royalties

The following is a reconciliation of the changes in our liabilities related to the sales of future royalties for the six months ended June 30, 2023 (in thousands):


	Six Months Ended June 30, 2023
	2012 Purchase and Sale Agreement		2020 Purchase and Sale Agreement		Total
Liabilities related to the sales of future royalties, net – beginning balance	$	55,167	$	100,211	$	155,378
Non-cash royalty revenue	(17,496)		(15,197)		(32,693)
Non-cash interest expense	2,538		10,019		12,557
Amortization of transaction costs	—		417		417
Liabilities related to the sales of future royalties, net – ending balance	$	40,209	$	95,450	$	135,659

Schedule of Accumulated Other Comprehensive Income (Loss)

The following table summarizes the changes in accumulated other comprehensive income (loss) by component (in thousands):


	Foreign currency translation		Available-for-sale securities		Accumulated Other Comprehensive Income
Balance at December 31, 2022	$	(5,131)	$	(1,776)	$	(6,907)
Foreign currency translation adjustments	139		—		139
Unrealized gain on available-for-sale securities	—		1,087		1,087
Balance at March 31, 2023	$	(4,992)	$	(689)	$	(5,681)
Foreign currency translation adjustments	13		—		13
Unrealized gain on available-for-sale securities	—		244		244
Reclassification adjustments to income	(1,026)		—		(1,026)
Balance at June 30, 2023	$	(6,005)	$	(445)	$	(6,450)

- Definition

Tabular disclosure of goodwill by reportable segment and in total which includes a rollforward schedule.

+ References

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+ Details

Cash and Investments in Marketable Securities - Portfolio of Cash and Investments in Marketable Securities (Detail) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Gross Unrealized Losses		$ (1,800)
Cash	$ 12,131	8,798
Total cash and investments in marketable securities	409,432	504,977
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Cost	351,647
Gross Unrealized Gains	0
Gross Unrealized Losses	(445)
Fair Value	351,202	427,726
Level 2 \| Corporate notes and bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Cost	21,466
Gross Unrealized Gains	0
Gross Unrealized Losses	(70)
Fair Value	21,396	83,522
Level 2 \| Corporate commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Cost	304,389
Gross Unrealized Gains	0
Gross Unrealized Losses	(370)
Fair Value	304,019	344,204
Level 2 \| Obligations of U.S. government agencies
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Cost	25,792
Gross Unrealized Gains	0
Gross Unrealized Losses	(5)
Fair Value	25,787	0
Level 2 \| Certificates of deposit
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, fair value disclosure	7,502	21,399
Level 1 \| Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, fair value disclosure	$ 38,597	$ 47,054

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Statement of Comprehensive Income [Abstract]
Net loss	$ (51,122)	$ (159,068)	$ (188,140)	$ (249,461)
Other comprehensive income (loss):
Net unrealized gain (loss) on available-for-sale securities	244	(988)	1,331	(3,079)
Net foreign currency translation loss	(1,013)	(671)	(874)	(955)
Other comprehensive income (loss)	(769)	(1,659)	457	(4,034)
Comprehensive loss	$ (51,891)	$ (160,727)	$ (187,683)	$ (253,495)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

+ Details

- Definition

Amount after tax and reclassification adjustments of other comprehensive income (loss).

+ References

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-Paragraph 1B
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482790/220-10-45-1B

Reference 11: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Section 55
-Paragraph 15
-SubTopic 10
-Topic 220
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482739/220-10-55-15

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 220
-SubTopic 10
-Name Accounting Standards Codification
-Section 45
-Paragraph 1A
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482790/220-10-45-1A

+ Details

Cash and Investments in Marketable Securities - Cash and Investments in Marketable Securities, Including Cash Equivalents (Detail) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Estimated Fair Value at
Cash and cash equivalents	$ 50,728	$ 88,227
Short-term investments	358,704	416,750
Total cash and investments in marketable securities	$ 409,432	$ 504,977

Cover Page - shares	6 Months Ended
Cover Page - shares	Jun. 30, 2023	Aug. 01, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2023
Document Transition Report	false
Entity File Number	0-24006
Entity Registrant Name	NEKTAR THERAPEUTICS
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	94-3134940
Entity Address, Address Line One	455 Mission Bay Boulevard South
Entity Address, City or Town	San Francisco
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	94158
City Area Code	415
Local Phone Number	482-5300
Title of 12(b) Security	Common Stock, $0.0001 par value
Trading Symbol	NKTR
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		190,118,673
Amendment Flag	false
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2
Entity Central Index Key	0000906709
Current Fiscal Year End Date	--12-31

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, shares authorized (in shares)	10,000,000	10,000,000
Preferred stock, shares designated (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized (in shares)	300,000,000	300,000,000
Common stock shares, issued (in shares)	190,119,000	188,560,000
Common stock, shares outstanding (in shares)	190,119,000	188,560,000

Condensed Consolidated Financial Statement Details - Schedule of Accrued Expenses (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Inventory Disclosure [Abstract]
Accrued compensation	$ 10,670	$ 9,582
Accrued clinical trial expenses	5,517	12,262
Liability to collaboration partners	4,472	3,808
Accrued contract termination costs	3,084	3,902
Other accrued expenses	5,399	7,003
Total accrued expenses	$ 29,142	$ 36,557

Organization and Summary of Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share

We excluded shares underlying the weighted average outstanding stock options, restricted stock units (RSUs) and performance stock units (PSUs), as follows (in thousands):


	Three Months Ended June 30,		Six Months Ended June 30,
	2023	2022	2023	2022
Potentially dilutive securities	21,317	20,543	22,049	21,435