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On Tuesday, H.C. Wainwright reiterated a Buy rating on Nektar Therapeutics (NASDAQ:NKTR) shares with a price target of $6.50, representing significant upside potential from the current price of $0.85. According to InvestingPro data, analysts’ consensus remains cautiously optimistic, with price targets ranging from $1.30 to $7.00. The stock appears undervalued based on InvestingPro’s Fair Value analysis. The affirmation came after Nektar announced its collaboration with TrialNet for a Phase 2 study to evaluate rezpeg, a potential treatment for type 1 diabetes mellitus (T1D). The study is a randomized, double-blind, placebo-controlled trial designed to enroll around 66 adult and pediatric patients with new-onset Stage 3 T1D within 100 days of their diagnosis.
Patients participating in the trial will be assigned in a 2:1 ratio to either the treatment or placebo group. Those receiving the treatment will be administered 12 µg/kg of rezpeg every other week for a total of 26 weeks. The primary goal of the study is to measure the C-peptide response to a Mixed Meal Tolerance Test at the 12-month mark, which includes both the treatment period and a 6-month follow-up phase. Secondary objectives of the study will focus on safety, pharmacokinetics, pharmacodynamics, and metabolic assessments, such as HbA1c levels and insulin usage.
The collaboration with TrialNet allows Nektar to advance the study of rezpeg without the need to invest its own funds. TrialNet will sponsor the Phase 2 study, while Nektar will provide rezpeg for the trial and retain all rights to the treatment. This strategic move is particularly important given that InvestingPro analysis shows the company is quickly burning through cash, though it maintains a strong current ratio of 4.24 and holds more cash than debt on its balance sheet. This strategic partnership is viewed positively as it adds another opportunity for Nektar to potentially bring rezpeg to market.
The study is slated to begin patient enrollment in 2025. H.C. Wainwright’s analyst expressed optimism about Nektar’s strategic move, stating that the company’s management is creating an additional avenue for rezpeg’s success. The firm’s maintained Buy rating and price target reflect confidence in the potential value rezpeg could bring to Nektar’s portfolio. With earnings scheduled for February 27, investors can access comprehensive analysis and 8 additional key ProTips through InvestingPro’s detailed research reports.
In other recent news, Nektar Therapeutics has made notable advancements in its clinical programs. The company announced that its drug candidate, rezpegaldesleukin, has received Fast Track designation from the U.S. Food and Drug Administration for treating moderate-to-severe atopic dermatitis in patients aged 12 and older. This designation aims to expedite the drug’s development and review process. Nektar has also reached its enrollment target for the Phase 2b REZOLVE-AD clinical trial, which is investigating rezpegaldesleukin’s efficacy in treating atopic dermatitis, with topline data expected in the second quarter of 2025.
Additionally, Nektar has partnered with TrialNet to conduct a Phase 2 study of rezpegaldesleukin in stage 3 type 1 diabetes patients, focusing on the drug’s safety and potential efficacy. The study will involve approximately 70 participants and aims to preserve C-peptide levels over 12 months. Piper Sandler has maintained its Overweight rating on Nektar, with a price target of $7, highlighting the potential of REZPEG in expanding its indications.
In a leadership update, Nektar announced that Mary Tagliaferri, MD, has stepped down as Senior Vice President and Chief Medical (TASE:BLWV) Officer for personal reasons. Brian Kotzin, MD, has been appointed as the interim Chief Medical Officer, bringing extensive experience in immunology and development. These developments indicate Nektar’s ongoing commitment to advancing its therapeutic pipeline in autoimmune and inflammatory diseases.
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