SAN CARLOS, Calif., Nov. 6 /PRNewswire-FirstCall/ -- Nektar Therapeutics today announced that it has repurchased 32%, or $100.0 million, of its outstanding convertible debt for approximately 48 cents on the dollar, for a total purchase price of $47.8 million. The company also reported its financial results for the third quarter and nine-months ended September 30, 2008.
"The turnaround at Nektar is now largely complete," said Nektar President and CEO Howard W. Robin. "We have created one of the most robust pipelines in biotech, dramatically improved the company's financial strength, assembled a new management team with a solid track record, and refocused the business around our powerful polymer and conjugate chemistry drug development platform."
Third Quarter 2008 Financial Results
Cash, cash equivalents, and short-term investments were $344.5 million at September 30, 2008 compared to $373.9 million at June 30, 2008.
Revenue for the three month period ended September 30, 2008 was $21.4 million compared to revenue of $56.3 million in the third quarter of 2007. For the first nine months of 2008, revenue was $61.8 million as compared to $207.3 million in the same period of 2007. This decrease in revenue is primarily the result of lower product manufacturing revenues due to the termination of the inhaled insulin collaboration by Pfizer in late 2007.
Nektar has continued to make significant improvements to its operating efficiencies as compared to a year ago. For the first nine months of 2008, the company's general and administrative expense was $37.0 million as compared to $42.3 million for the same period a year ago. Research and development expense was $109.1 million in the first nine months of 2008 as compared to $114.3 million for the same period in 2007. Included in the $109.1 million of overall research and development spending is approximately $66.0 million of new investments in Nektar preclinical and clinical development programs.
Nektar reported a net loss for the quarter ended September 30, 2008 of $37.0 million or $0.40 per share, compared to a net loss of $18.6 million or $0.20 per share in the third quarter of 2007. For the first nine months of 2008, the company reported a net loss of $111.1 million or $1.20 per share, compared to a net loss of $71.8 million or $0.78 per share for the same period in 2007.
Conference Call to Discuss Third Quarter 2008 Financial Results
Nektar will host a conference call today for analysts and investors at 2:00 p.m. Pacific time to discuss the company's third quarter performance. This conference call will be available via webcast and can be accessed through a link that is posted on the Investor Relations section of the Nektar website, http://www.nektar.com. The web broadcast of the conference call will be available for replay through November 20, 2008.
Nektar to Host Annual R&D Day on November 12
Nektar will host its second annual R&D Day meeting on Wednesday, November 12, 2008 from 12:00 pm to 3:30 pm Eastern time at the InterContinental Hotel in New York City. For more information or to RSVP for this event, please visit the investor relations section of the company's website at http://www.nektar.com.
About Nektar
Nektar Therapeutics is a biopharmaceutical company developing novel therapeutics based on its PEGylation and conjugate chemistry technology platforms. Nektar's technology and drug development expertise have enabled nine approved products for partners, which include leading biopharmaceutical companies. Nektar is also developing a robust pipeline of its own high-value therapeutics that addresses unmet medical needs by leveraging and expanding its technology platforms to improve and enable molecules.
For more information on Nektar Therapeutics, please visit http://www.nektar.com.
This press release contains forward-looking statements that reflect the company's current views regarding the status of the company's turnaround, the potential, progress, and clinical plans for the company's proprietary and partnered product pipeline, the value and potential of the company's technology platforms, and the company's financial strength. These forward- looking statements involve risks and uncertainties, including but not limited to: (i) the company's proprietary product candidates and those of its partners are in various stages of clinical development and the risk of failure is high and can occur at any stage prior to regulatory approval; (ii) the timing or success of the commencement or end of clinical trials and commercial launch of partnered products may be delayed or unsuccessful due to slower than anticipated patient enrollment, drug manufacturing challenges, changing standards of care, clinical trial design, clinical outcomes, or delay or failure in obtaining regulatory approval in one or more important markets; (iii) clinical trials are long, expensive and uncertain processes and the risk of failure of any product that is in clinical development and prior to regulatory approval remains high and can occur at any stage due to efficacy, safety or other factors; , and (iv) the risk that the sale of the company's pulmonary business assets to Novartis Pharmaceuticals Corporation may not close or the closing may be delayed, (v) the company's patent applications for its proprietary or partner product candidates may not issue, patents that have issued may not be enforceable, or intellectual property licenses from third parties may be required in the future; and (vi) the outcome of any existing or future intellectual property or other litigation related to the company's proprietary product candidates or complex commercial agreements. Other important risks and uncertainties are detailed in the company's reports and other filings with the Securities and Exchange Commission, including its most recent Quarterly Report on Form 10-Q. Actual results could differ materially from the forward-looking statements contained in this press release. The company undertakes no obligation to update forward-looking statements, whether as a result of new information, future events or otherwise.
CONTACT: Stephan Herrera, +1-415-488-7699, sherrera@nektar.com, or
Jennifer Ruddock, +1-650-631-4954, jruddock@nektar.com, both of Nektar
Therapeutics
Web site: http://www.nektar.com/
