Cash and investments in marketable securities at
"I am very pleased with Nektar's performance this year," said
Revenue in the second quarter of 2013 was
Total operating costs and expenses in the second quarter of 2013 were
Research and development expenses in the second quarter of 2013 were
General and administrative expense was
Non-cash interest expense incurred in connection with the
Net loss in the second quarter of 2013 was
The company also announced upcoming presentations at the following medical meetings and scientific congresses during the third and fourth quarters of 2013:
2013
- Abstract Title: "The Discovery of a Multi-arm Polymer Conjugated Taxane with Improved Efficacy in a Tumor Xenograft Model", Ren, M., et al.
- Poster Session: "
Division of Medicinal Chemistry " - Date:
September 8, 2013 , 7:00 p.m. Eastern Time
- Poster Session: "
2013 53rd ICAAC Annual Meeting,
- Abstract Title: "NKTR-223: Gram-Negative Activity of a Novel Polymer Conjugated Antimicrobial Peptide with a Superior Safety Profile", VanderVeen, L. A., et al.
- Poster Session: "Targeting the Gram-negative outer membrane"
- Date:
September 12, 2013 ,11:00 a.m. — 1:00 p.m. Mountain Time
- Abstract Title: "Etirinotecan Pegol Prolongs Survival in an Experimental Model of Brain Metastasis of Human Triple Negative Breast Cancer",
Hoch , U., et al.- Poster Session: "Breast Cancer — Advance Disease"
- Date:
September 30, 2013 ,2:00 p.m. — 4:30 p.m. Central European Summer Time
Cytokines 2013,
- Abstract Title: "Modulation of Cytokine Activity Through Advanced Polymer Conjugation", Kirk, P., et al.
- Poster Session II
- Date:
October 1, 2013 ,6:00 p.m. — 7:30 p.m. Pacific Time
- Abstract Title: "What's 'Mu' Got to Do With It: Understanding the Role of Opioids in Neuropathic Pain ", Choi, I., et al.
- Poster Session 68: "Pain Models: Pharmacology I"
- Date:
November 9, 2013 ,1:00 p.m. — 5:00 p.m. Pacific Time
Conference Call to Discuss Second Quarter 2013 Financial Results
Nektar management will host a conference call to review the results beginning at
This press release and a live audio-only Webcast of the conference call can be accessed through a link that is posted on the home page and Investor Relations section of the Nektar website: http://www.nektar.com. The web broadcast of the conference call will be available for replay through
To access the conference call, follow these instructions:
Dial: (877) 881.2183 (U.S.); (970) 315.0453 (international)
Passcode: 23081302 (
In the event that any non-GAAP financial measure is discussed on the conference call that is not described in the press release, or explained on the conference call, related information will be made available on the Investor Relations page at the Nektar website as soon as practical after the conclusion of the conference call.
About Nektar
Nektar's technology has enabled eight approved products in the U.S. or
Nektar is headquartered in
Cautionary Note Regarding Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: "anticipate," "intend," "plan," "expect," "believe," "should," "may," "will" and similar references to future periods. Examples of forward-looking statements include, among others, the projected regulatory submission dates for naloxegol, the projected availability of Phase 2 clinical study results for NKTR-181 and the value and potential of our technology and research and development pipeline. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, anticipated events and trends, the economy and other
future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results to differ materially from those indicated in the forward-looking statements include, among others, (i) our drug candidates and those of our collaboration partners are in various stages of clinical development and the risk of failure is high and can unexpectedly occur at any stage prior to regulatory approval for numerous reasons including safety and efficacy findings even after positive findings in previous preclinical and clinical
studies; (ii) the timing of the commencement or end of clinical trials and the commercial launch of our drug candidates may be delayed or unsuccessful due to regulatory delays, slower than anticipated patient enrollment, manufacturing challenges, changing standards of care, evolving regulatory requirements, clinical trial design, clinical outcomes, competitive factors, or delay or failure in ultimately obtaining regulatory approval in one or more important markets; (iii) acceptance, review and approval decisions for new drug applications by health authorities is an uncertain and evolving process and health authorities retain significant discretion at all stages of the regulatory review and approval decision process; (iv) scientific discovery of new medical breakthroughs is an inherently uncertain process and the future success of the application of our technology platform to potential
new drug candidates is therefore highly uncertain and unpredictable and one or more research and development programs could fail; and (v) certain other important risks and uncertainties set forth in our Quarterly Report on Form 10-Q filed with the
Nektar Investor Inquiries: |
|
|
(415) 482-5585 |
|
(212) 966-3650 |
Nektar Media Inquiries: |
|
|
(415) 817-2549 |
|
(646) 500-7631 |
| ||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||
(In thousands) | ||||||
(Unaudited) | ||||||
ASSETS |
|
|
(1) | |||
Current assets: |
||||||
Cash and cash equivalents |
$ 41,432 |
$ 25,437 |
||||
Short-term investments |
160,453 |
251,757 |
||||
Accounts receivable |
6,041 |
5,805 |
||||
Inventory |
20,479 |
18,269 |
||||
Other current assets |
6,018 |
13,363 |
||||
Total current assets |
234,423 |
314,631 |
||||
Restricted cash |
25,000 |
25,000 |
||||
Property and equipment, net |
67,849 |
72,215 |
||||
Goodwill |
76,501 |
76,501 |
||||
Other assets |
9,036 |
9,443 |
||||
Total assets |
$ 412,809 |
$ 497,790 |
||||
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) |
||||||
Current liabilities: |
||||||
Accounts payable |
$ 5,572 |
$ 2,863 |
||||
Accrued compensation |
11,087 |
8,773 |
||||
Accrued expenses |
11,356 |
8,008 |
||||
Accrued clinical trial expenses |
16,935 |
17,500 |
||||
Deferred revenue, current portion |
22,113 |
21,896 |
||||
Interest payable |
6,917 |
7,083 |
||||
Other current liabilities |
16,297 |
12,414 |
||||
Total current liabilities |
90,277 |
78,537 |
||||
Senior secured notes |
125,000 |
125,000 |
||||
Capital lease obligations, less current portion |
9,901 |
11,607 |
||||
Liability related to sale of future royalties, less current portion |
124,074 |
128,266 |
||||
Deferred revenue, less current portion |
93,516 |
96,551 |
||||
Deferred gain |
1,967 |
2,404 |
||||
Other long-term liabilities |
8,623 |
8,407 |
||||
Total liabilities |
453,358 |
450,772 |
||||
Commitments and contingencies |
||||||
Stockholders' equity (deficit) : |
||||||
Preferred stock |
- |
- |
||||
Common stock |
11 |
11 |
||||
Capital in excess of par value |
1,628,967 |
1,617,744 |
||||
Accumulated other comprehensive loss |
(1,336) |
(357) |
||||
Accumulated deficit |
(1,668,191) |
(1,570,380) |
||||
Total stockholders' equity (deficit) |
(40,549) |
47,018 |
||||
Total liabilities and stockholders' equity (deficit) |
$ 412,809 |
$ 497,790 |
(1) The consolidated balance sheet at | |||||||||||
| |||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||
(In thousands, except per share information) | |||||||
(Unaudited) | |||||||
Three Months Ended |
Six Months Ended | ||||||
June 30, |
| ||||||
2013 |
2012 |
2013 |
2012 | ||||
Revenue: |
|||||||
Product sales |
$ 10,324 |
$ 9,694 |
$ 22,134 |
$ 16,639 | |||
Royalty revenues |
351 |
290 |
676 |
3,467 | |||
Non-cash royalty revenue related to sale of future royalties |
3,828 |
3,469 |
8,221 |
3,469 | |||
License, collaboration and other revenue |
19,359 |
10,231 |
25,835 |
18,058 | |||
Total revenue |
33,862 |
23,684 |
56,866 |
41,633 | |||
Operating costs and expenses: |
|||||||
Cost of goods sold |
5,011 |
7,203 |
16,672 |
15,910 | |||
Research and development |
52,230 |
33,201 |
97,848 |
68,286 | |||
General and administrative |
9,226 |
10,268 |
20,057 |
20,682 | |||
Impairment of long-lived assets |
- |
- |
- |
1,675 | |||
Total operating costs and expenses |
66,467 |
50,672 |
134,577 |
106,553 | |||
Loss from operations |
(32,605) |
(26,988) |
(77,711) |
(64,920) | |||
Non-operating income (expense): |
|||||||
Interest income |
209 |
630 |
523 |
1,262 | |||
Interest expense |
(4,656) |
(2,562) |
(9,301) |
(5,109) | |||
Non-cash interest expense on liability related to sale of future royalties |
(5,485) |
(5,369) |
(11,028) |
(7,155) | |||
Other income (expense), net |
(6) |
97 |
123 |
757 | |||
Total non-operating expense, net |
(9,938) |
(7,204) |
(19,683) |
(10,245) | |||
Loss before provision for income taxes |
(42,543) |
(34,192) |
(97,394) |
(75,165) | |||
Provision for income taxes |
205 |
93 |
417 |
217 | |||
Net loss |
|
$ (34,285) |
$ (97,811) |
$ (75,382) | |||
Basic and diluted net loss per share |
$ (0.37) |
$ (0.30) |
$ (0.85) |
$ (0.66) | |||
Weighted average shares outstanding used in computing basic and diluted net loss per share |
115,544 |
114,649 |
115,427 |
114,590 | |||
| ||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||
(In thousands) | ||||
(Unaudited) | ||||
Six Months Ended | ||||
2013 |
2012 | |||
Cash flows from operating activities: |
||||
Net loss |
$ (97,811) |
$ (75,382) | ||
Adjustments to reconcile net loss to net cash used in operating activities: |
||||
Non-cash interest expense on liability related to sale of future royalties |
11,028 |
7,155 | ||
Non-cash royalty revenue related to sale of future royalties |
(8,221) |
(3,469) | ||
Stock-based compensation |
8,601 |
8,035 | ||
Depreciation and amortization |
7,281 |
6,952 | ||
Impairment of long-lived assets |
- |
1,675 | ||
Other non-cash transactions |
159 |
688 | ||
Changes in operating assets and liabilities: |
||||
Accounts receivable |
(236) |
(6,423) | ||
Inventory |
(2,210) |
(2,059) | ||
Other assets |
5,508 |
8,176 | ||
Accounts payable |
2,631 |
80 | ||
Accrued compensation |
2,314 |
(2,288) | ||
Accrued expenses |
3,280 |
191 | ||
Accrued clinical trial expenses |
(565) |
654 | ||
Deferred revenue |
(2,818) |
1,075 | ||
Interest payable |
(166) |
- | ||
Other liabilities |
(1,223) |
(269) | ||
Net cash used in operating activities |
(72,448) |
(55,209) | ||
Cash flows from investing activities: |
||||
Maturities of investments |
200,477 |
179,766 | ||
Purchases of investments |
(109,400) |
(120,410) | ||
Purchases of property and equipment |
(794) |
(3,172) | ||
Net cash provided by investing activities |
90,283 |
56,184 | ||
Cash flows from financing activities: |
||||
Payment of capital lease obligations |
(1,466) |
(1,151) | ||
(Repayment of) proceeds from sale of future royalties, net of |
(3,000) |
119,589 | ||
Proceeds from shares issued under equity compensation plans |
2,621 |
1,337 | ||
Net cash (used in) provided by financing activities |
(1,845) |
119,775 | ||
Effect of exchange rates on cash and cash equivalents |
5 |
92 | ||
Net increase in cash and cash equivalents |
15,995 |
120,842 | ||
Cash and cash equivalents at beginning of period |
25,437 |
15,312 | ||
Cash and cash equivalents at end of period |
$ 41,432 |
$ 136,154 | ||
Supplemental disclosure of cash flow information: |
||||
Cash paid for interest |
$ 9,070 |
$ 5,179 | ||
SOURCE
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