SAN CARLOS, Calif., Nov 07, 2007 /PRNewswire-FirstCall via COMTEX News Network/ -- Nektar Therapeutics (Nasdaq: NKTR) announced today the company's financial results for the third quarter that ended September 30, 2007.
Revenue totaled $56.3 million in the third quarter of 2007 compared to $58.6 million in the third quarter of 2006. For the nine months ended September 30, 2007, Nektar reported total revenue of $207.3 million compared to $147.8 million in the same period in 2006.
Cash, cash equivalents, and short-term investments were $452.6 million at September 30, 2007 compared to $406.8 million at June 30, 2007.
Nektar reported a net loss of $18.6 million or $0.20 per share in the third quarter of 2007 compared to a net loss of $19.6 million or $0.22 per share in the same period of 2006.
For the nine months ended September 30, 2007, net loss was $71.8 million or $0.78 per share compared to a net loss of $115.9 million or $1.29 per share in the same period in 2006.
"We've made great progress reshaping Nektar this year," said Howard W. Robin, president and chief executive officer of Nektar. "We realigned the company's business and research activities around our PEGylation and pulmonary technology platforms, built a strong executive team, signed a new strategic partnership with Bayer, and are moving two proprietary programs into Phase 2 clinical trials. Finally, for the first time in Nektar's history, we expect almost no operating cash burn for the year."
Mr. Robin will host a conference call today for analysts and investors beginning at 2:00 p.m. Pacific time to discuss the company's performance. This conference call will be available via webcast and can be accessed through a link that is posted on the Investor Relations section of the Nektar website, http://www.nektar.com. The web broadcast of the conference call will be available for replay through November 14, 2007.
To access the conference call, follow these instructions:
Dial: (800) 299-6183 (U.S.); (617) 801-9713 (international)
Passcode: 21153437 (Howard Robin is the host)
Audio replay dial-in and passcode:
Dial: (888) 286-8010 (U.S.);(617) 801-6888 (international)
Passcode: 86766898
About Nektar
Nektar Therapeutics is a biopharmaceutical company with a mission to develop and enable differentiated therapeutics with its industry-leading pulmonary and PEGylation technology platforms. Nektar pulmonary and PEGylation technology, expertise, manufacturing capabilities and know-how have enabled ten approved products for partners, which include the world's leading pharmaceutical and biotechnology companies. Nektar also develops its own products by applying its pulmonary and PEGylation technology platforms to
existing medicines with the objective to enhance performance, such as improving efficacy, safety and compliance.
This press release contains forward-looking statements that reflect the company's current views as to its financial plan, expectations regarding the progress, potential, and clinical plans for the company's proprietary product candidates in clinical development, the value of the company's technology platforms, business development potential with respect to potential future partnerships and overall prospects for the company's business. These forward-looking statements involve risks and uncertainties, including but not limited to: (i) the company's proprietary product candidates and those of certain of its partners are in the early phases of clinical development and the risk of failure is high and can occur at any stage prior to regulatory approval, (ii) the timing or success of the commencement or end of clinical trial phases is subject to a number of uncertainties including but not limited to patient enrollment, regulatory requirements and clinical outcomes, the company's or its partner's ability to obtain regulatory approval of its proprietary product candidates, (iii) the company's or its partner's success in obtaining regulatory approvals for product candidates, (iv) the company may not successfully complete new collaborative arrangements with respect to our product candidates, or if any arrangements we do negotiate do not include sufficiently favorable commercial terms, we may not receive an adequate return on these investments and our results of operations and financial condition would suffer (v) the company's patent applications for its proprietary or partner product candidates may not issue, patents that have issued may not be enforceable, or intellectual property licenses from third parties may be required in the future, and (vi) the outcome of any existing or future intellectual property or other litigation related to the company's proprietary product candidates. Other important risks and uncertainties are detailed in the company's reports and other filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q. Actual results could differ materially from the forward-looking statements contained in this press release. The company undertakes no obligation to update forward-looking statements, whether as a result of new information, future events or otherwise.
Tim Warner, 650-283-4915
twarner@nektar.com
Stephan Herrera, 415-488-7699
sherrera@nektar.com
Jennifer Ruddock, 650-631-4954
jruddock@nektar.com
NEKTAR THERAPEUTICS
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share information)
Unaudited Unaudited
Three-Months Ended Nine-Months Ended
September 30, September 30,
2007 2006 2007 2006
Revenue:
Product sales and royalties $37,497 $43,521 $159,818 $103,564
Contract research 18,824 15,111 47,436 44,250
Total revenue 56,321 58,632 207,254 147,814
Operating costs and expenses:
Cost of goods sold 27,457 31,179 123,469 76,947
Research and development 35,773 36,005 114,265 106,860
General and administrative 12,426 13,422 42,339 60,878
Litigation Settlement - - - 17,710
Impairment of long lived
assets - - - 1,156
Amortization of other
intangible assets 237 708 710 3,331
Total operating costs and
expenses 75,893 81,314 280,783 266,882
Loss from operations (19,572) (22,682) (73,529) (119,068)
Interest income 5,519 6,060 16,444 17,316
Interest expense (4,773) (5,255) (14,408) (15,335)
Other Income 206 2,273 189 1,181
Loss before provision for income
taxes (18,620) (19,604) (71,304) (115,906)
Provision for income taxes - - (500) -
Net loss $(18,620) $(19,604) $(71,804) $(115,906)
Basic and diluted net loss per
share $(0.20) $(0.22) $(0.78) $(1.29)
Shares used in computing basic
and diluted net loss per share 92,028 90,017 91,764 89,550
NEKTAR THERAPEUTICS
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
September 30, December 31,
2007 2006
(unaudited) (1)
ASSETS
Current assets:
Cash and cash equivalents $174,713 $63,760
Short-term investments 277,931 394,880
Accounts receivable, net of
allowance 36,805 47,148
Inventory 17,175 14,656
Other current assets 8,147 14,595
Total current assets 514,771 535,039
Long-term investments - 8,337
Property and equipment, net 135,317 133,812
Goodwill 78,431 78,431
Other intangible assets, net 2,917 3,626
Other assets 6,849 8,932
Total assets $738,285 $768,177
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $4,421 $7,205
Accrued compensation 11,796 12,994
Accrued expenses 24,564 17,942
Interest payable 1,130 3,814
Capital lease obligations, current
portion 1,134 711
Deferred revenue, current portion 43,636 16,409
Convertible subordinated notes,
current portion 66,627 102,653
Other current liabilities 3,371 3,586
Total current liabilities 156,679 165,314
Convertible subordinated notes 315,000 315,000
Capital lease obligations 21,987 19,759
Deferred revenue 58,247 23,697
Other long-term liabilities 15,469 17,347
Total liabilites 567,382 541,117
Commitments and contingencies
Stockholders' equity:
Preferred stock - -
Common stock 9 9
Capital in excess of par value 1,299,173 1,283,982
Accumulated other comprehensive
income 518 62
Accumulated deficit (1,128,797) (1,056,993)
Total stockholders' equity 170,903 227,060
Total liabilities and stockholders'
equity $738,285 $768,177
(1) The consolidated balance sheet at December 31, 2006 has been derived
from the audited financial statements at that date but does not
include all of the information and notes required by generally
accepted accounting principles in the United States for complete
financial statements. Certain 2006 amounts have been reclassified
between line items to conform with the 2007 presentation.
SOURCE Nektar Therapeutics
http://www.nektar.com
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