Piper Sandler maintains $7 target on Nektar stock post-event

Published 25/02/2025, 06:18
Piper Sandler maintains $7 target on Nektar stock post-event

Tuesday, Piper Sandler reaffirmed its Overweight rating and $7.00 price target on Nektar Therapeutics (NASDAQ:NKTR), representing significant upside from the current price of $0.85, following an investor and analyst event. According to InvestingPro data, analyst targets for the stock range from $1.30 to $7.00, with the company currently appearing undervalued based on Fair Value analysis. The event focused on the development of REZPEG in treating new onset Type 1 Diabetes (T1D) and featured discussions with key opinion leaders (KOLs) on the subject.

The company recently announced a clinical trial agreement with TrialNet to investigate this therapeutic avenue. During the event, three KOLs presented insights on the role of regulatory T cells (Tregs) in T1D management and the potential advantages of REZPEG, an IL-2Rα agonist. While the company maintains a strong liquidity position with a current ratio of 4.24 and more cash than debt on its balance sheet, InvestingPro analysis indicates the company is quickly burning through cash. The discussions also covered the design of a Phase 2 trial for T1D, which is expected to begin in 2025 and will involve approximately 66 participants.

Analysts highlighted that the event provided a comprehensive understanding of the immune imbalance in T1D patients and the mechanistic rationale for using IL-2 targeted therapies. REZPEG’s selective induction of Tregs and its increased half-life set it apart from the current standard of care. These unique properties could help restore immune homeostasis in T1D patients and potentially enhance their quality of life.

Piper Sandler’s positive outlook on Nektar Therapeutics is based on the potential for REZPEG to significantly expand its indications. The company is also anticipating Phase 2b readouts for REZOLVE-AD in the second quarter of 2025 and REZOLVE-AA in the second half of 2025. With revenue growth of 5.53% in the last twelve months and a market capitalization of $157 million, investors seeking deeper insights can access comprehensive analysis and 8 additional ProTips through InvestingPro’s detailed research report.

In other recent news, Nektar Therapeutics has announced the completion of enrollment for its Phase 2b clinical trial, REZOLVE-AD, which is evaluating the efficacy of rezpegaldesleukin in treating moderate-to-severe atopic dermatitis. The trial has enrolled 396 patients and aims to report topline data from its induction phase in 2025. In related developments, the U.S. Food and Drug Administration has granted Fast Track designation to rezpegaldesleukin for atopic dermatitis, potentially accelerating its development and review process. Meanwhile, Nektar has also teamed up with TrialNet to study rezpegaldesleukin in stage 3 type 1 diabetes mellitus patients, highlighting the drug’s potential in multiple autoimmune conditions.

Additionally, Nektar Therapeutics has undergone a significant leadership change with the resignation of Mary Tagliaferri, its Senior Vice President and Chief Medical (TASE:BLWV) Officer, for personal reasons. Brian Kotzin has been appointed as the interim Chief Medical Officer, bringing extensive experience in immunology and pharmaceutical development. Analyst firm B. Riley has initiated coverage on Nektar with a Buy rating, citing the potential of rezpegaldesleukin as a market disruptor in atopic dermatitis treatment. The recent sale of Nektar’s PEGylation manufacturing business has bolstered the company’s financial position, providing over $300 million in cash to support operations into mid-2026.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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