These are top 10 stocks traded on the Robinhood UK platform in July
On Wednesday, B.Riley initiated coverage on shares of Nektar Therapeutics (NASDAQ:NKTR) with a Buy rating and a price target of $4.00. With the stock currently trading at $1.19, analyst targets range up to $7, suggesting significant upside potential according to InvestingPro data. The firm's analysis is based on the potential of NKTR's advanced candidate, REZPEG, which is currently in Phase IIb trials for atopic dermatitis (AD) and alopecia areata (AA).
These trials are close to completing enrollment and are expected to report primary efficacy endpoints in the near future. The company's revenue has shown positive momentum with 5.53% growth in the last twelve months.
Nektar's REZPEG aims to address the core disease etiology of AD by increasing T regulatory cells to reduce inflammation. This approach has shown promise in a Phase IIb study, indicating the possibility of deep remission without ongoing therapy. The successful development of REZPEG could disrupt the current AD treatment market, which is dominated by Sanofi (NASDAQ:SNY)'s Dupixent.
Sanofi's Dupixent has set a high standard of care, generating a market value exceeding $10 billion while treating less than 10% of the moderate-to-severe AD patient population. B.Riley suggests that REZPEG could be a significant player in the evolving AD treatment landscape, which also includes drugs targeting the OX40 ligand/receptor.
The recent sale of Nektar's PEGylation manufacturing business has provided the company with over $300 million in pro forma cash, which is expected to fund operations into mid-2026. InvestingPro analysis shows the company maintains a strong current ratio of 4.24, with liquid assets exceeding short-term obligations.
This financial stability, combined with the clinical progress of REZPEG, contributes to the firm's positive outlook on Nektar Therapeutics' stock. Get access to 10+ additional exclusive ProTips and comprehensive financial analysis with InvestingPro's detailed research report.
In other recent news, Nektar Therapeutics has been making significant strides in its operations and clinical studies. The company recently finalized the sale of its manufacturing facility in Huntsville, Alabama, to an affiliate of Ampersand Capital Partners (WA:CPAP), a move that aligns with the company's strategic initiatives to streamline operations.
On the clinical front, Nektar's lead asset, rezpegaldesleukin (REZPEG), targeting autoimmune disorders, is currently undergoing Phase 2 studies, with top-line data expected in 2025. The company's NKTR-165 and NKTR-422 programs are also progressing, targeting multiple sclerosis and autoimmune diseases respectively.
In terms of financials, Nektar ended its third quarter with a strong cash position of $249 million, and anticipates a year-end increase in cash and investments to about $265 million. Full-year revenue is expected to be between $90 million and $95 million.
In a separate report, Piper Sandler, a leading investment bank, identified Nektar Therapeutics as one of the companies with key Phase 2b readouts expected in 2025. These recent developments highlight Nektar Therapeutics' commitment to advancing its immuno-oncology pipeline and its potential to impact millions of patients worldwide.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.