Nektar Therapeutics (NKTR) AI Stock Analysis

• Market Cap: $1.05B
• Dividend Yield: N/A
• Average Volume (3M): 1.16M
• Price to Earnings (P/E): ―
• Beta (1Y): 3.91
• Revenue Growth: -19.56%
• EPS Growth: 35.55%
• Country: US
• Employees: 61
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -2.95
• Shares Outstanding: 19,018,574
• 10 Day Avg. Volume: 1,712,328
• 30 Day Avg. Volume: 1,160,843
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.35
• Enterprise Value/Revenue: 4.87
• Enterprise Value/Gross Profit: 5.86
• Enterprise Value/Ebitda: -4.07
• 1Y Price Target: $101.17
• Price Target Upside: 83.48% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 56 Neutral
• Price Target: $26.00 ▼(-52.85% Downside)

Nektar Therapeutics' overall stock score is primarily impacted by its weak financial performance, which poses significant risks. However, positive earnings call sentiment and corporate events provide some optimism, supported by strong technical indicators suggesting bullish momentum. Valuation concerns remain due to ongoing financial losses.

Positive Factors

Clinical Advancements

Successful Phase IIb results for REZPEG in atopic dermatitis highlight potential for a first-in-class treatment, bolstering Nektar's pipeline strength and market potential.

Regulatory Progress

FDA Fast Track designation expedites regulatory review, enhancing Nektar's ability to bring REZPEG to market faster, potentially capturing significant market share.

Financial Position

The strengthened financial position from recent equity financing extends operational runway, supporting continued R&D and strategic initiatives without immediate capital pressure.

Negative Factors

Revenue Decline

Persistent revenue decline indicates challenges in product commercialization and market penetration, potentially impacting long-term growth and sustainability.

High Leverage

High leverage and negative equity pose risks to financial stability, limiting flexibility and increasing vulnerability to market fluctuations.

Profitability Challenges

Significant negative profit margins highlight ongoing operational inefficiencies and cost management issues, which could hinder future profitability and investment appeal.

Nektar Therapeutics Business Overview & Revenue Model

Company Description

Nektar Therapeutics, a biopharmaceutical company, focuses on discovering and developing medicines in areas of unmet medical need in the United States and internationally. The company's products include Bempegaldesleukin, a CD122-preferential interleukin-2 (IL-2) pathway agonist, which is in phase 3 clinical trial to treat metastatic melanoma, renal cell carcinoma, muscle-invasive bladder cancer, squamous cell carcinoma of the head and neck, and adjuvant melanoma; phase 2 clinical trial for the treatment of renal cell carcinoma, non-small cell lung cancer, and urothelial cancer; phase 1/2A clinical trial to treat squamous cell carcinoma of the head and neck; phase 1/2 clinical trial for the treatment of solid tumors; and phase 1B clinical trial to treat COVID-19. It is also developing NKTR-358, a cytokine Treg stimulant that is in phase 2 clinical trial for the treatment of systemic lupus erythematosus and ulcerative colitis, as well as phase 1B clinical trial to treat atopic dermatitis and psoriasis; NKTR-255, an IL-15 receptor agonist, which is in phase 1/2 clinical trial for the treatment of non-Hodgkin's lymphoma and multiple myeloma, and head and neck cancer and colorectal cancer; and NKTR-262, a toll-like receptor agonist that is in phase 1/2 clinical trial to treat solid tumors, as well as various other drug candidates. The company has collaboration agreements with Takeda Pharmaceutical Company Ltd.; AstraZeneca AB; UCB Pharma S.A.; F. Hoffmann-La Roche Ltd; Bausch Health Companies Inc.; Pfizer Inc.; Amgen Inc.; UCB Pharma (Biogen); Bristol-Myers Squibb Company; Baxalta Incorporated; Eli Lilly and Company; Merck KGaA; and SFJ Pharmaceuticals, Inc. Nektar Therapeutics was incorporated in 1990 and is headquartered in San Francisco, California.

How the Company Makes Money

Nektar Therapeutics generates revenue primarily through the development and commercialization of its pharmaceutical products, including licensing agreements and collaborations with larger pharmaceutical companies. The company earns money from upfront payments, milestone payments, and royalties on sales from its partnered products. Significant partnerships with major pharmaceutical companies, including Bristol-Myers Squibb and Eli Lilly, contribute to its revenue through collaborative research and development efforts. Additionally, Nektar may also generate revenue from grants and funding for its research initiatives.

Nektar Therapeutics Financial Statement Overview

Summary

Nektar Therapeutics faces significant financial challenges, with declining revenues, high leverage, and negative profitability. The company's financial health is strained, as evidenced by negative equity and cash flow issues. While there are minor improvements in cash flow growth, the overall financial position remains precarious, requiring strategic adjustments to improve stability and profitability.

Income Statement

Nektar Therapeutics has experienced declining revenue over the TTM period, with a negative revenue growth rate of -14.11%. The company also shows negative profit margins, with a net profit margin of -163.17% and an EBIT margin of -119.13%, indicating significant losses relative to revenue. Despite a high gross profit margin of 83.15%, the overall profitability is severely impacted by high operating expenses.

Balance Sheet

The balance sheet reveals a concerning financial structure with a negative stockholders' equity, leading to a negative debt-to-equity ratio of -3.97. This indicates that the company is highly leveraged and may face financial instability. The return on equity is also negative at -493.29%, reflecting poor returns for shareholders.

Cash Flow

Cash flow analysis shows a slight improvement in free cash flow growth at 4.43%, but the company still operates with negative operating cash flow and free cash flow. The operating cash flow to net income ratio is -2.59, suggesting that the company struggles to convert its earnings into cash flow, which is critical for sustaining operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	74.93M	98.43M	90.12M	92.06M	101.91M	152.91M
Gross Profit	62.31M	67.74M	53.48M	70.42M	77.01M	133.44M
EBITDA	-89.75M	-86.70M	-243.11M	-323.87M	-462.97M	-394.33M
Net Income	-122.27M	-118.96M	-276.06M	-368.20M	-523.84M	-444.44M
Balance Sheet
Total Assets	207.53M	303.85M	398.03M	710.60M	1.12B	1.54B
Cash, Cash Equivalents and Short-Term Investments	175.90M	255.23M	303.62M	504.98M	733.96M	1.06B
Total Debt	96.16M	102.56M	117.78M	131.50M	143.18M	150.29M
Total Liabilities	231.75M	243.11M	267.05M	343.96M	437.68M	461.47M
Stockholders Equity	-24.21M	60.74M	130.99M	366.64M	679.51M	1.08B
Cash Flow
Free Cash Flow	-186.07M	-177.18M	-193.47M	-309.68M	-427.65M	-320.55M
Operating Cash Flow	-184.91M	-175.71M	-192.61M	-304.01M	-412.66M	-313.29M
Investing Cash Flow	199.63M	142.57M	139.56M	365.83M	202.78M	496.21M
Financing Cash Flow	314.00K	42.12M	30.00K	1.51M	36.24M	-80.35M

Nektar Therapeutics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 55.14
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NKTR, the sentiment is Positive. The current price of 55.14 is above the 20-day moving average (MA) of 40.30, above the 50-day MA of 30.80, and above the 200-day MA of 17.51, indicating a bullish trend. The MACD of 7.50 indicates Negative momentum. The RSI at 78.61 is Negative, neither overbought nor oversold. The STOCH value of 88.35 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NKTR.

Nektar Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NKTR	56 Neutral	$1.05B	―	-440.80%	―	-19.56%	35.55%
FDMT	52 Neutral	308.24M	-1.78	-31.51%	―	0.00%	0.00%
NKTX	39 Underperform	142.05M	-1.35	0.00%	―	0.00%	26.33%
RAPT	39 Underperform	328.44M	-1.40	0.00%	―	0.00%	43.16%
ALDX	37 Underperform	295.29M	-5.82	0.00%	―	0.00%	-32.74%
KOD	35 Underperform	503.39M	-2.51	0.00%	―	0.00%	-0.69%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Nektar Therapeutics Corporate Events

Nektar Therapeutics Announces Public Offering of Shares

On June 30, 2025, Nektar Therapeutics announced an underwritten public offering of 4,255,320 shares of its common stock, priced at $23.50 per share, expected to close on July 2, 2025. The offering, managed by Jefferies LLC and other underwriters, is projected to yield approximately $93.7 million in net proceeds, with potential to increase to $107.8 million if additional shares are purchased. The funds are intended for general corporate purposes, including research and development and clinical advancement of drug candidates, potentially impacting the company’s financial standing and operational capabilities.

Nektar Therapeutics Regains Nasdaq Compliance by June 2025

On April 3, 2025, Nektar Therapeutics was notified by Nasdaq that it was not in compliance with the Minimum Bid Price Rule, as its stock price had fallen below $1.00 for 30 consecutive trading days. However, by June 23, 2025, the company regained compliance by maintaining a stock price of at least $1.00 for 10 consecutive business days, ensuring its continued listing on The Nasdaq Capital Market.

Nektar Therapeutics Announces Positive Phase 2b Trial Results

On June 24, 2025, Nektar Therapeutics announced the successful results of its Phase 2b REZOLVE-AD clinical trial for rezpegaldesleukin, a treatment for moderate-to-severe atopic dermatitis. The trial, involving 393 patients, showed statistically significant improvements in the primary and key secondary endpoints, including Eczema Area and Severity Score (EASI) and Itch Numerical Rating Score (NRS), across all dosage arms compared to placebo. The treatment demonstrated a robust dose-dependent reduction in inflammatory biomarkers and maintained a consistent safety profile with no increased risk of serious adverse events. These results highlight the potential of rezpegaldesleukin as a first-in-class immune-modulator for dermatological diseases, with further data expected in early 2026.