Nektar price target lowered to $3 from $5 at SVB Securities

SVB Securities analyst Daina Graybosch lowered the firm’s price target on Nektar to $3 from $5 and keeps a Market Perform rating on the shares following topline Phase 2 ISLAND-SLE results for rezpegaldesleukin in patients with moderate-to-severe systemic erythematosus lupus. The analyst said that although rezpeg demonstrated some encouraging signals of clinical activity in SLE, they understand Lilly’s (LLY) decision to discontinue efforts based on "inconsistent clinical outcomes and a narrow therapeutic window weighed against a justifiably high internal go/no-go bar in SLE." SVB sees "considerable uncertainty going forward for rezpeg," and in the next months, sees "potential upside, downside, and muddy scenarios for Nektar."