Cash and investments in marketable securities at September 30, 2017 were $412.2M as compared to $389.1M at December 31, 2016.
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SAN FRANCISCO, Nov. 7, 2017 /PRNewswire/ -- Nektar Therapeutics (Nasdaq: NKTR) today reported its financial results for the third quarter ended September 30, 2017. Cash and investments in marketable securities at September 30, 2017 were $412.2 million as compared to $389.1 million at December 31, 2016. The cash balance includes the $150.0 million upfront payment from Nektar's collaboration with Eli Lilly & Company for the development and commercialization of NKTR-358. "Nektar's immuno-oncology portfolio continues to expand as we add novel drug candidates to our growing pipeline," said Howard W. Robin, President and CEO of Nektar. "NKTR-214 is the first I-O agent to both increase tumor-infiltrating lymphocytes (TILs) and increase PD-1 expression on human immune cells, which uniquely complements checkpoint inhibition and other anti-cancer mechanisms. As the majority of cancer patients have tumors that do not express PD-L1 and these patients receive limited benefit from treatment with checkpoint inhibitors, the potential of NKTR-214 to help patients is significant. Finally, based on recent positive conversations with the agency regarding our regulatory plans for NKTR-181, we are now planning to submit an NDA for NKTR-181 by April 2018 with our data package of over 2,100 patients and healthy volunteers." Revenue in the third quarter of 2017 was $152.9 million as compared to $36.3 million in the third quarter of 2016. Year-to-date revenue for 2017 was $212.2 million as compared to $128.0 million in the first nine months of 2016. Revenue in 2017 included recognition of $127.6 million of the $150.0 million upfront payment from Nektar's collaboration with Eli Lilly & Company for the development and commercialization of NKTR-358. Total operating costs and expenses in the third quarter of 2017 were $83.4 million as compared to $69.2 million in the third quarter of 2016. Year-to-date total operating costs and expenses in 2017 were $247.9 million as compared to $208.7 million for the same period in 2016. Total operating costs and expenses increased primarily as a result of increased research and development (R&D) expense. Research and development expense in the third quarter of 2017 was $65.7 million as compared to $52.0 million in the third quarter of 2016. Year-to-date R&D expense for 2017 was $187.0 million as compared to $153.6 million for the same period in 2016. R&D expense was higher in the third quarter and first nine months of 2017 as compared to the same periods in 2016 primarily because of expenses for our pipeline programs, including Phase 3 clinical studies for NKTR-181, Phase 1/2 clinical studies of NKTR-214 and NKTR-358 and IND-enabling activities for NKTR-262 and NKTR-255. General and administrative expense was $12.1 million in the third quarter of 2017 as compared to $10.3 million in the third quarter of 2016. G&A expense in the first nine months of 2017 was $40.0 million as compared to $31.5 million for the same period in 2016. G&A expense in the first nine months of 2017 includes a $3.3 million charge for a litigation settlement related to a cross-license agreement. Net income in the third quarter of 2017 was $60.9 million or $0.39 basic income per share as compared to net loss of $43.2 million or $0.32 basic loss per share in the third quarter of 2016. Net loss in the first nine months of 2017 was $62.9 million or $0.41 basic loss per share as compared to $111.3 million or $0.82 basic loss per share in the first nine months of 2016. The company also announced upcoming presentations at the following scientific congresses during the fourth quarter of 2017: Society for Immunotherapy in Cancer (SITC) 32nd Annual Meeting, National Harbor, MD: Oral Presentation: "PIVOT-02: Preliminary safety, efficacy and biomarker results from the Phase 1/2 study of CD-122-biased agonist NKTR-214 plus nivolumab in patients with locally advanced/metastatic solid tumors" Poster #P77: "The Novel IL-2 Cytokine Immune Agonist NKTR-214 Harnesses the Adaptive and Innate Immune System for the Treatment of Solid Cancers" Poster #P140: "NKTR-214 enhances anti-tumor T-cell immune responses induced by checkpoint blockade or vaccination" Poster #P274: "Combination of NKTR-214 and radiotherapy (RT) to reverse anergy and expand tumor-specific CD8 T-Cells" Poster #P275: "Harnessing the innate and adaptive immune system to eradicate treated and distant untreated solid tumors" Poster #P332: "Pre-clinical efficacy and tolerability of NKTR-255, a polymer-conjugated IL-15 for immuno-oncology" Poster #434: "Great Apes Adenoviral vaccine encoding neoantigens synergizes with immunomodulators to cure established tumors in mice" American College of Neuropsychopharmacology 56th Annual Meeting, Palm Springs, CA: Poster #T166: "Abuse potential of NKTR-181 in recreational opioid users: results from a randomized, double-blind crossover oral study" Conference Call to Discuss Third Quarter 2017 Financial Results This press release and a 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: http://ir.nektar.com/index.cfm. The web broadcast of the conference call will be available for replay through Monday, December 11, 2017. To access the conference call, follow these instructions: In the event that any non-GAAP financial measure is discussed on the conference call that is not described in the press release, or explained on the conference call, related information will be made available on the Investor Relations page at the Nektar website as soon as practical after the conclusion of the conference call. About Nektar Cautionary Note Regarding Forward-Looking Statements Contact: NEKTAR THERAPEUTICS
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
ASSETS September 30, 2017 December 31, 2016 (1)
------------------ -----------------
Current assets:
Cash and cash
equivalents $37,967 $59,640
Short-term
investments 314,600 329,462
Accounts
receivable, net 3,314 15,678
Inventory 13,654 11,109
Other current
assets 13,260 10,063
Total current assets 382,795 425,952
Long-term investments 59,596 -
Property, plant and equipment, net 62,396 65,601
Goodwill 76,501 76,501
Other assets 767 817
--- ---
Total assets $582,055 $568,871
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $8,563 $2,816
Accrued
compensation 19,088 18,280
Accrued clinical
trial expenses 7,000 7,958
Other accrued
expenses 9,302 4,711
Interest payable 4,198 4,198
Capital lease
obligations,
current portion 2,482 2,908
Liability
related to
refundable
upfront payment 12,500 12,500
Deferred
revenue,
current portion 25,491 14,352
Other current
liabilities 3,920 4,499
Total current liabilities 92,544 72,222
Senior secured notes, net 244,771 243,464
Liability related to the sale of future
royalties, net 98,394 105,950
Deferred revenue, less current portion 56,225 51,887
Other long-term liabilities 5,959 7,223
----- -----
Total liabilities 497,893 480,746
Commitments and contingencies
Stockholders' equity:
Preferred stock - -
Common stock 15 15
Capital in
excess of par
value 2,170,169 2,111,483
Accumulated
other
comprehensive
loss (1,907) (2,363)
Accumulated
deficit (2,084,115) (2,021,010)
Total stockholders' equity 84,162 88,125
Total
liabilities and
stockholders'
equity $582,055 $568,871
(1) The consolidated balance
sheet at December 31, 2016 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.
NEKTAR THERAPEUTICS
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share information)
(Unaudited)
Three Months Ended September 30, Nine Months Ended September
30,
-------------------------------- ---------------------------
2017 2016 2017 2016
---- ---- ---- ----
Revenue:
Product sales $4,448 $14,698 $24,897 $41,664
Royalty revenue 9,302 5,573 23,953 13,150
Non-cash royalty revenue related
to sale of future royalties 8,066 7,692 21,367 22,341
License, collaboration and other
revenue 131,112 8,373 142,028 50,829
Total revenue 152,928 36,336 212,245 127,984
Operating costs and expenses:
Cost of goods sold 5,674 7,033 20,794 23,611
Research and development 65,714 51,951 187,032 153,569
General and administrative 12,055 10,253 40,027 31,515
Total operating costs and expenses 83,443 69,237 247,853 208,695
------ ------ ------- -------
Income (loss) from operations 69,485 (32,901) (35,608) (80,711)
Non-operating income (expense):
Interest expense (5,540) (5,614) (16,452) (16,918)
Non-cash interest expense on
liability related to sale of
future royalties (4,471) (4,902) (13,535) (14,929)
Interest income and other income
(expense), net 1,599 332 3,163 1,666
Total non-operating expense, net (8,412) (10,184) (26,824) (30,181)
Income (loss) before provision for
income taxes 61,073 (43,085) (62,432) (110,892)
Provision for income taxes 202 139 434 433
--- --- --- ---
Net income (loss) $60,871 $(43,224) $(62,866) $(111,325)
======= ======== ======== =========
Net income (loss) per share:
Basic $0.39 $(0.32) $(0.41) $(0.82)
Diluted $0.37 $(0.32) $(0.41) $(0.82)
Weighted average shares outstanding
used in computing net income (loss)
per share:
Basic 156,411 137,094 155,153 136,415
Diluted 162,641 137,094 155,153 136,415
NEKTAR THERAPEUTICS
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Nine Months Ended September 30,
-------------------------------
2017 2016
---- ----
Cash flows from operating activities:
Net loss $(62,866) $(111,325)
Adjustments to
reconcile net loss
to net cash used in
operating
activities:
Non-cash royalty revenue related to
sale of future royalties (21,367) (22,341)
Non-cash interest expense on
liability related to sale of future
royalties 13,535 14,929
Stock-based compensation 25,118 18,793
Depreciation and amortization 12,081 11,502
Other non-cash transactions (1,370) (2,190)
Changes in operating
assets and
liabilities:
Accounts receivable, net 12,364 5,698
Inventory (2,545) 592
Other assets (2,036) 6,041
Accounts payable 5,729 4,799
Accrued compensation 808 9,735
Accrued clinical trial expenses (958) 2,726
Other accrued expenses 4,971 2,386
Liability related to refundable
upfront payment - 12,500
Deferred revenue 15,477 (12,665)
Other liabilities 1,046 (5,793)
----- ------
Net cash used in
operating activities (13) (64,613)
Cash flows from investing activities:
Purchases of investments (314,439) (142,972)
Maturities of investments 261,112 201,449
Sales of investments 8,823 4,969
Purchases of property, plant and
equipment (7,283) (3,741)
------ ------
Net cash (used in)
provided by
investing activities (51,787) 59,705
Cash flows from financing activities:
Payment of capital lease obligations (2,159) (5,376)
Proceeds from shares issued under
equity compensation plans 32,275 18,041
------ ------
Net cash provided by
financing activities 30,116 12,665
Effect of exchange
rates on cash and
cash equivalents 11 (32)
Net (decrease)
increase in cash and
cash equivalents (21,673) 7,725
Cash and cash
equivalents at
beginning of period 59,640 55,570
Cash and cash
equivalents at end
of period $37,967 $63,295
Supplemental disclosure of cash flow information:
Cash paid for
interest $14,989 $15,513
View original content:http://www.prnewswire.com/news-releases/nektar-therapeutics-reports-financial-results-for-the-third-quarter-of-2017-300551330.html SOURCE Nektar Therapeutics |
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Company Codes: NASDAQ-NMS:NKTR |
