Nektar assumed with a Buy at BTIG

BTIG assumed coverage of Nektar (NKTR) with a Buy rating and $4 price target. There is a compelling disconnect between rezpegaldesleukin’s broad potential in I&I – Immunology & Inflammation – and where Nektar currently trades, ahead of Phase 2b atopic dermatitis and alopecia areata data expected in the first half of next year and mid-2025, respectively, the analyst tells investors in a research note. This promising Treg expanding therapy was in a prior collaboration with Eli Lilly (LLY) that soured for reasons likely unrelated to the drug’s merits, and the stock has not fully recovered since the collaboration termination, though there is a clear path to upside unlocked through additional clinical data and litigation that could shine light on the true reasons why Eli Lilly walked away from Rezpeg and left several inaccuracies for Nektar to correct, the firm added.