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On Friday, BTIG reiterated its Buy rating on Nektar Therapeutics (NASDAQ:NKTR) shares, maintaining a price target of $4.00. The stock currently trades at $0.62, having experienced a significant decline of about 56% over the past six months. According to InvestingPro analysis, the stock appears to be trading below its Fair Value, suggesting potential upside opportunity for investors. The firm’s optimism is driven by the anticipated topline results from the Phase 2b trial of REZPEG in atopic dermatitis, expected in June 2025, following the completion of enrollment in January 2025. Analysts at BTIG believe the upcoming data event is significantly derisked, citing positive outcomes from earlier Phase 1b results. They also noted that recent failures in the atopic dermatitis space do not negatively impact Nektar’s prospects and commended the company for its execution of the trial, which they believe reduces the risk of high placebo responses. InvestingPro data reveals that while the company maintains a strong gross profit margin of about 75%, analysts anticipate a sales decline in the current year.
BTIG’s positive outlook is further supported by Nektar’s ongoing development in other areas. The company is on schedule to release data from the Phase 2b trial of REZPEG for a second indication, alopecia areata, in December 2025. Additionally, a Proof of Concept (PoC) trial for REZPEG in Type 1 diabetes, in collaboration with TrialNet and funded by the same, is expected to commence later this year.
Beyond REZPEG, Nektar is progressing its earlier stage pipeline, with plans to submit an Investigational New Drug (IND) application for NKTR-0165, a TNFR2 agonist, around the end of 2025. The company is also set to disclose a new program, NKTR-0166, a bispecific antibody that includes TNFR2 and an undisclosed validated antibody target, which is entering preclinical development.
The financial outlook for Nektar Therapeutics presents a mixed picture. The company reported having $220.7 million in cash and equivalents at the end of the first quarter of 2025. InvestingPro analysis shows that while the company holds more cash than debt and maintains a healthy current ratio of 3.24, it’s quickly burning through its cash reserves. For deeper insights into Nektar’s financial health and detailed analysis, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers. According to company guidance, these funds are expected to be sufficient to support operations into the fourth quarter of 2026. Additionally, BTIG sees potential for further upside from Nektar’s retained rights to dapirolizumab, which is partnered with Biogen (NASDAQ:BIIB), for whom BTIG holds a Neutral rating.
In other recent news, Nektar Therapeutics reported its financial results for the first quarter of 2025, which fell short of expectations. The company announced an earnings per share (EPS) of -$0.24, missing the forecasted -$0.16, and recorded revenue of $10.5 million, below the anticipated $16.31 million. Despite these financial setbacks, Nektar maintains a strong cash position with $220.7 million on hand, providing a buffer for continued investment in research and development. The company highlighted promising clinical advancements, particularly with its T regulatory cell therapy, RespEG, which is undergoing multiple clinical trials. Nektar anticipates significant milestones in its clinical programs, with upcoming results expected for its atopic dermatitis and alopecia areata studies later in 2025. The company is also involved in ongoing litigation with Lilly, which could impact its financial and operational stability. Nektar projects full-year revenue of approximately $40 million and expects its cash runway to extend into the fourth quarter of 2026.
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