Nektar Therapeutics

What they do

Nektar Therapeutics is a clinical-stage, research-based biopharmaceutical company developing immunomodulatory agents for autoimmune diseases and cancer. Its pipeline includes rezpegaldesleukin for atopic dermatitis, alopecia areata, and type 1 diabetes, NKTR-0165 (preclinical), NKTR-0166, and NKTR-255 for oncology. The company has no approved products and generates revenue primarily from collaboration agreements and royalty payments.

Revenue drivers

• Collaboration revenue — Revenue from partnerships, including a collaboration with TrialNet for rezpegaldesleukin in type 1 diabetes, and prior arrangements with Lilly and Merck KGaA. Total annual revenue was $55.2M in 2025, down from $98.4M in 2024.
• Rezpegaldesleukin development milestones — Potential milestone payments from collaborations, such as the TrialNet agreement, though no specific amounts are disclosed.
• Legacy royalty and license income — Minimal recurring revenue from past partnerships; revenue has declined as programs have been deprioritized.

Recent performance

In Q2 2026, Nektar reported revenue of $10.1 million, down from $11.2 million in Q2 2025. First-half 2026 revenue was $21.0 million versus $21.6 million in the prior year. Net loss for Q2 2026 was $40.6 million ($1.23 per share), compared to $41.6 million ($2.95 per share) in Q2 2025. R&D expense rose to $39.1 million in Q2 2026 from $29.9 million a year earlier, driven by Phase 3 preparation. Cash and investments stood at $1,023.4 million as of June 30, 2026, up from $245.8 million at year-end 2025, partly due to a $373.8 million public offering in April 2026.

Strategy

Nektar is prioritizing rezpegaldesleukin as its lead program, advancing it into a Phase 3 ZENITH AD program in atopic dermatitis, with a planned registrational trial in alopecia areata in early 2027. The company plans to reduce spending on earlier-stage programs like NKTR-255 and NKTR-0165 to focus resources on rezpegaldesleukin. Management also intends to continue investing in new drug candidates and potential in-licensing opportunities. The company aims to file a BLA for rezpegaldesleukin in 2029.

Risks

• Clinical trial failure — Rezpegaldesleukin is highly dependent on Phase 3 outcomes; past programs like the Lilly SLE trial failed and did not advance.
• Dependence on single lead asset — Future success hinges on rezpegaldesleukin; no approved products and limited revenue provide little buffer if trials fail.
• Cash burn and financing risk — Despite $1.02 billion cash, ongoing losses (net loss of $85.5M in H1 2026) and rising R&D costs may require further dilution.
• Regulatory and manufacturing challenges — BLA submission planned for 2029; delays in manufacturing or regulatory interactions could impact timelines and cash runway.

Outlook

Management expects R&D expense to increase significantly in 2026 to support the Phase 3 ZENITH AD program. Cash runway is projected into Q3 2028, covering initial Phase 3 data readouts expected in mid-2028. The company plans to initiate ZENITH AD-1 and AD-2 in July 2026, with ZENITH AD-3 and a registrational alopecia areata trial to follow, aiming for a BLA submission in 2029.