Nektar Posts Wider Loss, Maintains View - Analyst Blog
May 15 2013 - 7:26AM
Zacks
Nektar Therapeutics (NKTR) reported a loss of
48 cents per share in the first quarter of 2013, wider than the
year-ago loss of 34 cents and the Zacks Consensus Estimate of a
loss of 41 cents. The wider loss during the quarter was primarily
due to higher expenses.
Quarter in Details
Total revenues in the reported quarter jumped 28.2% to $23.0
million. The increase in quarterly revenues was primarily due to
higher product sales. Revenues in the first quarter of 2013 were
also boosted by the inclusion of non-cash royalty revenues from the
sale of future royalties pertaining to UCB’s
(UCBJF) Cimzia and Roche Holdings' (RHHBY)
Mircera.
In Feb 2012, the company had sold all its rights to receive
future royalty payments on net sales of Cimzia and Mircera to
Royalty Pharma for $124 million. Revenues however missed the Zacks
Consensus Estimate of $25 million.
Total revenues comprised net product revenues, royalty revenues,
non-cash royalty revenues, license and collaboration revenues and
others.
Nektar’s net product revenues of approximately $11.8 million
were up 70.1% during the reported quarter.
Nektar’s royalty revenues decreased 89.8% to $0.3 million during
the quarter. The company’s license, collaboration and other
revenues also decreased during the reported quarter. The company
recorded license, collaboration and other revenues of $6.5 million,
down 17.3%.
Research and development (R&D) expenses were up 30.0% to
$45.6 million in the first quarter of 2013. R&D expenses during
the quarter increased primarily due to higher clinical expenses
related to its pipeline.
The company expects to complete the enrolment process for the
phase III BEACON study on NKTR-102 for the treatment of patients
suffering from metastatic breast cancer by the third quarter of
this year. The company expects data from the study in 2014.
NKTR-102 is also being developed for the treatment of ovarian
cancer.
Nektar’s general and administrative (G&A) expenses also
increased 6.9% to $11.1 million during the quarter.
2013 Outlook
Apart from disclosing its financial results, Nektar also
maintained its guidance for 2013. The company still expects total
revenues in the range of $200–$210 million, including potential
milestone payments of $95 million. The revenue guidance also
includes $20 million of non-cash royalty revenues in relation to
Cimzia and Mircera.
Nektar reiterated its R&D expenses for 2013 in the range of
$200 million to $220 million. Nektar’s G&A expenses for 2013
are also maintained in the range of $42–$44 million.
Nektar, a biopharma company, currently carries a Zacks Rank #4
(Sell). However, other biopharma stocks such as Jazz
Pharmaceuticals (JAZZ) currently look better positioned
carrying a Zacks Rank #1 (Strong Buy).
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