Nektar Therapeutics Reports Second Quarter 2025 Financial Results

Rhea-AI Summary

Nektar Therapeutics (Nasdaq: NKTR) reported Q2 2025 financial results, with cash and investments of $175.9 million as of June 30, 2025, down from $269.1 million in December 2024. The company raised additional $107.5 million through a secondary offering in July 2025, extending operations into Q1 2027.

Key financial metrics include Q2 2025 revenue of $11.2 million (down from $23.5 million in Q2 2024) and a net loss of $41.6 million ($2.95 per share). The company reported significant progress with rezpegaldesleukin in Phase 2b studies for atopic dermatitis, achieving statistical significance in primary and secondary endpoints. The FDA granted Fast Track designation for rezpegaldesleukin in alopecia areata treatment.

Positive

• FDA granted Fast Track designation for rezpegaldesleukin in alopecia areata treatment
• Successful completion of $115 million public offering in July 2025
• Phase 2b study for rezpegaldesleukin achieved statistical significance in atopic dermatitis treatment
• Cash runway extended into Q1 2027 with secondary offering proceeds
• Operating costs decreased from $73.3M to $47.4M year-over-year in Q2

Negative

• Revenue declined 52% to $11.2M in Q2 2025 from $23.5M in Q2 2024
• Net loss of $41.6M in Q2 2025
• Non-cash losses of $2.4M from Gannet BioChem equity investment in Q2 2025
• Cash position decreased from $269.1M to $175.9M over six months

Insights

Biotech Investment Analyst

Nektar reports significant rezpegaldesleukin clinical success amid declining revenue and continued losses, with extended cash runway into 2027.

Nektar's Q2 2025 financial results show both challenges and opportunities. The company's cash position decreased to $175.9 million from $269.1 million at year-end 2024, representing a burn rate of approximately $93 million over six months. However, the $107.5 million net proceeds from July's secondary offering extends their runway into Q1 2027, giving them critical breathing room for clinical development.

Revenue declined significantly to $11.2 million versus $23.5 million in Q2 2024 (-52%), primarily due to the strategic divestiture of their Huntsville manufacturing facility. Operating expenses decreased to $47.4 million from $73.3 million year-over-year (-35%), though R&D expenses remained stable at around $30 million quarterly as the company prioritizes its pipeline.

The net loss of $41.6 million ($2.95 per share) improved from $52.4 million ($3.76 per share) in Q2 2024, showing better financial discipline. However, the company recorded a $2.4 million non-cash loss from its equity investment in Gannet BioChem.

The most significant positive development is rezpegaldesleukin's Phase 2b data in atopic dermatitis, which demonstrated statistical significance on both primary and key secondary endpoints. This T-regulatory cell biologic showed rapid onset of action and potential differentiation from competing mechanisms. FDA Fast Track designation for rezpegaldesleukin in alopecia areata further validates its potential.

Nektar is advancing its pipeline with NKTR-0165 (targeting TNFR2 receptor) in IND-enabling studies planned for clinical entry in 2026, and a new bispecific antibody (NKTR-0166) in preclinical development. Their strategic focus on T-regulatory cell therapeutics for autoimmune conditions represents a novel mechanistic approach with significant market potential given the millions of patients suffering from these chronic disorders.

Immunology Clinical Development Expert

Nektar's rezpegaldesleukin shows breakthrough efficacy in atopic dermatitis with unique T-reg mechanism differentiating it from competitors.

The Phase 2b data for rezpegaldesleukin represents a potential scientific breakthrough in treating inflammatory skin conditions. The REZOLVE-AD study results are particularly impressive, demonstrating statistically significant improvements in the primary endpoint (EASI score reduction) and multiple challenging secondary endpoints including EASI-75, EASI-90, itch reduction via NRS, vIGA-AD scores, and affected body surface area (BSA).

What makes this development scientifically significant is rezpegaldesleukin's novel mechanism targeting T-regulatory (Treg) cells. Unlike conventional approaches that broadly suppress inflammation or target specific cytokines, this first-in-class biologic aims to restore immune homeostasis by enhancing Treg function. The rapid onset of action and meaningful itch reduction are particularly valuable clinical attributes, as pruritus significantly impacts quality of life in atopic dermatitis patients.

The FDA's Fast Track designation for rezpegaldesleukin in severe-to-very severe alopecia areata suggests regulatory recognition of both the unmet need and the therapy's potential. This designation is only granted when preliminary clinical evidence indicates a therapy may demonstrate substantial improvement over available options.

The expansion of Nektar's T-reg platform with NKTR-0165 targeting the TNFR2 receptor represents a thoughtful pipeline strategy. TNFR2 is preferentially expressed on Tregs and activating this pathway could enable more tissue-specific immunomodulation with potentially fewer systemic effects than broader approaches. The bispecific antibody NKTR-0166 further leverages this scientific understanding by combining TNFR2 targeting with another validated mechanism.

The upcoming 52-week rezpegaldesleukin data in early 2026 will be crucial for assessing durability of response and long-term safety. Similarly, the alopecia areata Phase 2b results expected in December 2025 will help determine if this Treg mechanism has broader applications across multiple autoimmune conditions. If successful across these indications, Nektar's platform could represent a paradigm shift in treating autoimmune disorders by addressing fundamental immune dysregulation rather than merely suppressing symptoms.

SAN FRANCISCO, Aug. 7, 2025 /PRNewswire/ -- Nektar Therapeutics (Nasdaq: NKTR) today reported financial results for the second quarter ended June 30, 2025.

Cash and investments in marketable securities on June 30, 2025 were $175.9 million as compared to $269.1 million on December 31, 2024. Nektar's cash and marketable securities at June 30, 2025 do not include $107.5 million of approximate net proceeds from the secondary offering closed on July 2, 2025.  With the net proceeds from the secondary offering, we expect our cash and investments in marketable securities to support our operations into the first quarter of 2027.

"This quarter, we announced transformative data for rezpegaldesleukin from the Phase 2b study in patients with moderate to severe atopic dermatitis," said Howard W. Robin, President and CEO of Nektar. "The 16-week induction data demonstrated that rezpegaldesleukin resulted in a rapid onset of EASI response and itch relief and showcased the advantage of a broad-based Treg mechanism over other mechanistic approaches in development to treat atopic dermatitis. We look forward to seeing the effect of continued treatment with rezpegaldesleukin when we report the 52-week data in early 2026. In alopecia areata, we will report the data from a separate Phase 2b study in December of this year.  We believe the data from both randomized studies will demonstrate the potential of rezpegaldesleukin to provide a new treatment paradigm for patients with chronic and serious diseases that significantly impact quality of life.  As a first-in-class, T regulatory cell biologic, rezpegaldesleukin is poised to become an important novel mechanism to treat millions of patients with autoimmune disorders."

"We are proceeding in our IND-enabling studies for our next T reg program, NKTR-0165, which targets the TNFR2 receptor to stimulate tissue-specific T regulatory cells," continued Robin. "Our goal is to advance NKTR-0165 into the clinic in 2026. Finally, we are making significant progress on advancing preclinical studies with a new bispecific antibody, NKTR-0166, which combines the TNFR2 epitope with a validated antibody target."

Summary of Financial Results

Revenue in the second quarter of 2025 was $11.2 million as compared to $23.5 million in the second quarter of 2024. Revenue for the first half of 2025 was $21.6 million as compared to $45.1 million in the first half of 2024. Revenue has decreased year over year because we no longer recognize product sales due to the sale of the Huntsville manufacturing facility in December 2024.

Total operating costs and expenses in the second quarter of 2025 were $47.4 million as compared to $73.3 million in the second quarter of 2024. Total operating costs and expenses in the first half of 2025 were $102.4 million as compared to $130.3 million in the first half of 2024. Operating costs and expenses for the first half of 2025 decreased due to the elimination of cost of goods sold following the sale of the Huntsville manufacturing facility, as well as a decrease in restructuring and impairment charges.  

R&D expense in the second quarter of 2025 was $29.9 million as compared to $29.7 million for the second quarter of 2024. R&D expense in the first half of 2025 was $60.4 million as compared to $57.1 million for the first half of 2024. R&D expense increased for the first half of 2025 primarily due to an increase in expenses for the development of rezpegaldesleukin and NKTR-0165, partially offset by a decrease in expense for the development of NKTR-255.

G&A expense was $17.1 million in the second quarter of 2025 as compared to $20.5 million in the second quarter of 2024. G&A expense was $41.4 million in the first half of 2025 as compared to $40.7 million in the first half of 2024. G&A expense increased slightly in the first half of 2025 due to an increase in legal expenses, partially offset by decreases in facilities and stock-based compensation expenses.

Non-cash restructuring and impairment charges were not material in the second quarter and first half of 2025. Non-cash restructuring and impairment charges in the second quarter of 2024 were $13.3 million and $14.3 million in the first half of 2024. These non-cash charges were related to the declining San Francisco commercial real estate market and real estate lease obligations held by Nektar.

In the first quarter of 2025, we began accounting for our investment in the new portfolio company, Gannet BioChem, under the equity method of accounting which calculates our gain or loss based on the change in our share of Gannet BioChem's equity each quarter. This resulted in non-cash losses from the equity method investment of $2.4 million in the second quarter of 2025 and $6.8 million in the first half of 2025.

Net loss for the second quarter of 2025 was $41.6 million or $2.95 basic and diluted loss per share as compared to a net loss of $52.4 million or $3.76¹ basic and diluted loss per share in the second quarter of 2024. Net loss in the first half of 2025 was $92.5 million or $6.57 basic and diluted loss per share as compared to a net loss of $89.2 million or $6.63¹ basic and diluted loss per share in the first half of 2024. Excluding the $2.4 million and $6.8 million non-cash loss from our equity method investment in Gannet BioChem, net loss, on a non-GAAP basis, for the second quarter and first half of 2025 were $39.2 million and $85.6 million, respectively, or $2.78 and $6.08 basic and diluted loss per share, respectively.

_________________________

1 The per share amounts have been retrospectively adjusted to reflect a one-for-fifteen reverse stock split completed on June 8, 2025.

Recent Business Highlights

• In July of 2025, the U.S. Food and Drug Administration (FDA) granted Fast Track designation for rezpegaldesleukin for the treatment of severe-to-very severe alopecia areata (AA) in adults and pediatric patients 12 years of age and older who weigh at least 40 kilograms.
• In July of 2025, Nektar announced the successful closing of a public offering of its common stock including the full exercise of underwriters' option to purchase additional shares, raising $115 million in gross proceeds. 
• In June of 2025, Nektar announced that the REZOLVE-AD study achieved statistical significance on the primary endpoint at week 16 for mean percent change in EASI score from baseline for all rezpegaldesleukin arms versus placebo and achieved statistical significance for key secondary endpoints at week 16, including EASI-75, EASI-90, Itch NRS, vIGA-AD and BSA. The rapid onset of EASI reduction and magnitude of itch improvement show potential differentiation of this novel regulatory T-cell mechanism as a first and best-in-class immune-modulator.
• In June of 2025, Nektar collaborators at the Fred Hutchinson Cancer Center presented oral data for NKTR-255 as adjunctive treatment to cell therapy at the 30^th Annual European Hematological Association (EHA) Congress entitled, "Enhanced CAR T-cell Expansion and Durable Complete Responses with NKTR-255 Plus Lisocabtagene Maraleucel in Relapsed/Refractory Large B-cell Lymphoma."

Conference Call to Discuss Second Quarter 2025 Financial Results

Nektar management will host a conference call to review the results beginning at 5:00 p.m. Eastern Time/2:00 p.m. Pacific Time on August 7, 2025.

This press release and live audio-only webcast of the conference call can be accessed through a link that is posted on the Home Page and Investors section of the Nektar website: https://ir.nektar.com/. The web broadcast of the conference call will be available for replay through September 8, 2025.

To access the conference call by phone, please pre-register at Nektar Earnings Call Registration. All registrants will receive dial-in information and a PIN allowing them to access the live call. 

About Nektar Therapeutics

Nektar Therapeutics is a clinical-stage biotechnology company focused on developing treatments that address the underlying immunological dysfunction in autoimmune and chronic inflammatory diseases. Nektar's lead product candidate, rezpegaldesleukin (REZPEG, or NKTR-358), is a novel, first-in-class regulatory T cell stimulator being evaluated in two Phase 2b clinical trials, one in atopic dermatitis and one in alopecia areata. Nektar's pipeline also includes a preclinical bivalent tumor necrosis factor receptor type II (TNFR2) antibody and bispecific programs, NKTR-0165 and NKTR-0166, and a modified hematopoietic colony stimulating factor (CSF) protein, NKTR-422. Nektar, together with various partners, is also evaluating NKTR-255, an investigational IL-15 receptor agonist designed to boost the immune system's natural ability to fight cancer, in several ongoing clinical trials. Nektar is headquartered in San Francisco, California. For further information, visit www.nektar.com and follow Nektar on LinkedIn.

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements which can be identified by words such as: "will," "expect," "develop," "potential," "advance," "plan," "target," "believe," and similar references to future periods. Examples of forward-looking statements include, among others, statements regarding the therapeutic potential of, and future development plans for, rezpegaldesleukin, NKTR-0165, NKTR-0166, NKTR-422, and NKTR-255. 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 statements regarding the therapeutic potential of rezpegaldesleukin, NKTR-0165, NKTR-0166, NKTR-422 and NKTR-255 are based on preclinical and clinical findings and observations and are subject to change as research and development continue; (ii) rezpegaldesleukin, NKTR-0165, NKTR-0166, NKTR-422 and NKTR-255 are investigational agents and continued research and development for these drug candidates is subject to substantial risks, including negative safety and efficacy findings in future clinical studies (notwithstanding positive findings in earlier preclinical and clinical studies); (iii) rezpegaldesleukin, NKTR-0165, NKTR-0166, NKTR-422 and NKTR-255 are in clinical development and the risk of failure is high and can unexpectedly occur at any stage prior to regulatory approval; (iv) the timing of the commencement or end of clinical trials and the availability of clinical data 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; (v) a Fast Track designation does not increase the likelihood that rezpegaldesleukin will receive marketing approval in the United States; (vi) patents may not issue from our patent applications for our drug candidates, patents that have issued may not be enforceable, or additional intellectual property licenses from third parties may be required; and (vii) certain other important risks and uncertainties set forth in our Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on May 9, 2025. Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.

Contacts:

For Investors:

Corey Davis, Ph.D.
LifeSci Advisors, LLC
cdavis@lifesciadvisors.com 
212-915-2577

Ahu Demir, Ph.D.
LifeSci Advisors, LLC
ademir@lifesciadvisors.com
212-915-3820

For Media:

Madelin Hawtin
LifeSci Communications
603-714-2638

 

NEKTAR THERAPEUTICS
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
ASSETS								June 30, 2025		December 31, 2024(1)(2)
Current assets:
	Cash and cash equivalents							$                    42,988		$                         44,252
	Short-term investments							132,915		210,974
	Other current assets							10,663		6,066
		Total current assets						186,566		261,292
Long-term investments								-		13,869
Property and equipment, net								2,988		3,411
Operating lease right-of-use assets								7,585		8,413
Equity method investment in Gannet BioChem								5,371		12,218
Other assets								5,024		4,647
		Total assets						$                  207,534		$                      303,850
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current liabilities:
	Accounts payable							14,281		11,560
	Accrued expenses							35,099		29,972
	Operating lease liabilities, current portion							22,011		19,868
		Total current liabilities						71,391		61,400
Operating lease liabilities, less current portion								74,145		82,696
Liabilities related to the sales of future royalties, net								80,573		91,776
Other long-term liabilities								5,636		7,241
		Total liabilities						231,745		243,113
Commitments and contingencies
Stockholders' equity:
	Preferred stock							-		-
	Common stock							1		1
	Capital in excess of par value							3,667,487		3,659,885
	Treasury stock							(3,000)		(3,000)
	Accumulated other comprehensive income (loss)							(14)		61
	Accumulated deficit							(3,688,685)		(3,596,210)
		Total stockholders' equity (deficit)						(24,211)		60,737
	Total liabilities and stockholders' equity							$                  207,534		$                      303,850
(1) The consolidated balance sheet at December 31, 2024 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.
(2) All share and per share amounts have been retrospectively adjusted to reflect a one-for-fifteen reverse stock split

 

NEKTAR THERAPEUTICS
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share information)
(Unaudited)
								Three months ended June 30,				Six months ended June 30,
								2025		2024(2)		2025		2024(2)
Revenue:
	Product sales							$                             -		$                           6,640		$                             -		$                     12,674
	Non-cash royalty revenue related to the sales of future royalties							11,175		16,790		21,635		32,298
	License, collaboration and other revenue							-		59		-		156
Total revenue								11,175		23,489		21,635		45,128
Operating costs and expenses:
	Cost of goods sold							-		9,740		-		18,274
	Research and development							29,886		29,724		60,366		57,132
	General and administrative							17,072		20,510		41,418		40,659
	Restructuring and impairment							447		13,289		616		14,264
Total operating costs and expenses								47,405		73,263		102,400		130,329
	Loss from operations							(36,230)		(49,774)		(80,765)		(85,201)
Non-operating income (expense):
	Non-cash interest expense on liabilities related to the sales of future royalties							(5,394)		(6,408)		(10,368)		(11,939)
	Interest income							1,969		3,901		4,843		8,121
	Other income (expense), net							260		(36)		526		(135)
Total non-operating income (expense), net								(3,165)		(2,543)		(4,999)		(3,953)
Loss before provision (benefit) for income taxes and equity method investment								(39,395)		(52,317)		(85,764)		(89,154)
Provision (benefit) for income taxes								(188)		46		(136)		11
Loss before equity method investment								(39,207)		(52,363)		(85,628)		(89,165)
Loss from equity method investment								(2,386)		-		(6,847)		-
Net loss								$                   (41,593)		$                       (52,363)		$                   (92,475)		$                   (89,165)
Basic and diluted net loss per share								$                       (2.95)		$                           (3.76)		$                       (6.57)		$                       (6.63)
Weighted average shares outstanding used in computing basic and diluted net loss per share								14,087,307		13,921,378		14,074,545		13,452,164
(2) All share and per share amounts have been retrospectively adjusted to reflect a one-for-fifteen reverse stock split

 

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SOURCE Nektar Therapeutics

FAQ

What were Nektar Therapeutics (NKTR) key financial results for Q2 2025?

Nektar reported Q2 2025 revenue of $11.2 million, cash position of $175.9 million, and a net loss of $41.6 million ($2.95 per share).

What progress did NKTR make with rezpegaldesleukin in Q2 2025?

Rezpegaldesleukin achieved statistical significance in Phase 2b study for atopic dermatitis and received FDA Fast Track designation for alopecia areata treatment.

How much did Nektar raise in their July 2025 public offering?

Nektar raised $115 million in gross proceeds through a public offering of common stock, including full exercise of underwriters' option.

What is Nektar's current cash runway following the secondary offering?

With the additional $107.5 million from the secondary offering, Nektar expects its cash to support operations into the first quarter of 2027.

How did NKTR's operating costs change in Q2 2025 compared to Q2 2024?

Operating costs decreased to $47.4 million in Q2 2025 from $73.3 million in Q2 2024, primarily due to elimination of manufacturing costs and reduced restructuring charges.