Nektar Therapeutics prices $100 million public offering of common stock

Published 01/07/2025, 12:22
Nektar Therapeutics prices $100 million public offering of common stock

SAN FRANCISCO - Nektar Therapeutics (NASDAQ:NKTR) has priced its underwritten public offering of $100 million of common stock at $23.50 per share, the clinical-stage biotechnology company announced Tuesday. The offering comes as the stock trades at $25.84, having delivered an impressive 85% return over the past six months, according to InvestingPro data.

The offering consists of 4,255,320 shares, with underwriters granted a 30-day option to purchase up to an additional 638,298 shares at the same public offering price, less underwriting discounts and commissions.

The transaction is expected to close on Wednesday, July 2, subject to customary closing conditions. Jefferies and Piper Sandler are serving as joint bookrunning managers, with BTIG, LLC as passive bookrunner and H.C. Wainwright & Co. as co-manager.

Nektar intends to use the proceeds for general corporate purposes, including research and development, clinical development, and manufacturing costs to support its drug candidates. With a current ratio of 3.24 and annual revenue of $87.25 million, the company maintains strong liquidity despite burning through cash rapidly, as highlighted by InvestingPro analysis.

The company’s lead product candidate, rezpegaldesleukin (REZPEG), is currently being evaluated in two Phase 2b clinical trials for atopic dermatitis and alopecia areata. Nektar’s pipeline also includes a preclinical bivalent tumor necrosis factor receptor type II antibody and other immunotherapy programs.

The offering is being made pursuant to a shelf registration statement on Form S-3 that was filed with the SEC on March 28, 2025, and declared effective on April 1, 2025.

According to the press release statement, the securities are only being offered by means of a prospectus supplement and accompanying prospectus that form part of the registration statement. For investors seeking deeper insights into Nektar’s financial health and market position, InvestingPro offers comprehensive analysis with 15+ additional ProTips and a detailed research report, helping investors make more informed decisions.

In other recent news, Nektar Therapeutics announced a public offering of its common stock and pre-funded warrants, which aims to raise funds for general corporate purposes such as research and development. Jefferies and Piper Sandler are managing the offering, which includes an option for underwriters to purchase an additional 15% of shares. Meanwhile, Nektar’s experimental drug rezpegaldesleukin demonstrated promising results in a Phase 2b study for moderate-to-severe atopic dermatitis, meeting both primary and key secondary endpoints. The drug showed significant improvements in the Eczema Area and Severity Score (EASI) and was well-tolerated, with injection site reactions being the most common side effect. The company plans to release further data for this drug in alopecia areata by the end of 2025. Additionally, Nektar is preparing to present top-line data from the REZOLVE-AD trial in June 2025, with a webcast planned to discuss the findings. These developments highlight Nektar’s ongoing efforts to advance its pipeline of immunology therapies.

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