Nektar Therapeutics NKTR reported a loss of 40 cents per share in the second quarter of 2015, wider than the Zacks Consensus Estimate of a loss of 27 cents and the year-ago loss of 26 cents per share.
Revenues in the second quarter of 2015 were $22.7 million, down 20.5% from the year-ago, well short of the Zacks Consensus Estimate of $46 million.
Quarter in Detail
Total revenues comprised net product revenues, royalty revenues, non-cash royalty revenues, license and collaboration revenues and others.
License, collaboration and other revenues during the quarter fell 63.9% from the year-ago quarter to $6.2 million. We note that Nektar has an agreement with AstraZeneca AZN for Movantik, which is approved for the treatment of opioid-induced constipation (OIC), in adult patients with chronic, non-cancer pain.
Nektar’s net product sales and royalty revenues were $11.7 million during the reported quarter, up 98.8% from the year-ago-period. Non-cash royalty revenues related to the sale of future royalties decreased 2% year over year to $4.7 million.
Research and development (R&D) expenses increased 23.7% year over year to $45.4 million, primarily due to the initiation of a phase III study on NKTR-181 in patients with low back pain.
General and administrative (G&A) expenses increased 5.9% year over year to $10.2 million during the quarter.
Pipeline Update
Nektar has made significant progress with its pipeline so far. Baxalta Inc. BXLT filed a biologics license application with the FDA for the approval of BAX 855 for the treatment of hemophilia A. Baxalta plans to launch BAX 855 later in 2015, upon approval. Nektar has an agreement with Baxter for BAX 855.
2015 Outlook Maintained
Nektar continues to expect total revenues in the range of $215 million to $225 million (including non-cash royalty revenue of $19 million). The company expects to recognize $40 million in milestone payment in the fourth quarter for the first commercial sale of Moventig in Germany or the UK.
The Zacks Consensus Estimate for total revenues currently stands at $231 million.
R&D expense is expected in the range of $185 million to $195 million. SG&A spend is expected to be in the $42 million – $44 million range.
Nektar currently carries a Zacks Rank #2 (Buy). AMAG Pharmaceuticals, Inc. AMAG is a better-ranked stock in the health care sector sporting a Zacks Rank #1 (Strong Buy).
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