Nektar downgraded to Underperform from Hold at Jefferies

Jefferies analyst Roger Song downgraded Nektar Therapeutics (NKTR) to Underperform from Hold with a price target of $1.50, down from $3.20. The Phase 2 of rezpegaldesleukin in systemic lupus erythematosus did not meet primary endpoint or high efficacy hurdle set by partner Eli Lilly (LLY), the analyst tells investors in a research note. While Nektar does not see readthrough to other indications including Alzheimer’s given different diseases, the firm sees lower confidence and risk of stopping the entire rezpegaldesleukin program. It downgraded the shares to Underperform citing limited near-term upside events.