Nektar stock price target raised to $69 from $2 at Jefferies on AD data

Published 24/06/2025, 21:28
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Investing.com - Jefferies raised its price target on Nektar Therapeutics (NASDAQ:NKTR) to $69.00 from $2.00 on Tuesday, maintaining a Buy rating following positive Phase 2b atopic dermatitis (AD) data for the company’s Rezpeg treatment.

The statistically significant Phase 2b results matched Jefferies’ "Phase 1b like" scenario, which had projected a substantial stock movement given low market expectations. The data reinforced confidence in Rezpeg’s potential as a novel biologic with strong efficacy and safety in a disease area where approximately 30-40% of patients do not adequately respond to standard of care treatments.

Nektar plans to hold an end-of-Phase 2 meeting with regulators by year-end 2025, with potential Phase 3 initiation in 2026. The company remains open to partnership opportunities for Rezpeg’s Phase 3 study, which could alter this timeline.

Jefferies’ dramatic price target increase reflects several adjustments to their model, including increasing the probability of success to 45% from 20%, accounting for Nektar’s 15-to-1 reverse stock split, and making operational expense adjustments.

Maintenance data for Rezpeg is expected in early 2026, which could further differentiate the treatment from competitors by highlighting its durability, maintenance capabilities, and more convenient dosing schedule for long-term use.

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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