NEKTAR THERAPEUTICS Q3 FY2024 earnings call

• Advancement of REZPEG: Phase 2 studies in ectopic dermatitis (400-patient Phase 2b study on track with top line data in first half of 2025) and alopecia areata (86-patient Phase 2b study on track with top line data in second half of 2025); Phase 1b data published in Nature Communications bolstered clinical plan. • NKTR-165: Preclinical data showed selective enhancement of Treg cell function, conducting IND enabling studies with goal of IND submission in second half of 2025, and designing TNFR2 containing bispecific molecules. • NKTR-422: Preclinical data selected for oral presentation at 2024 ACR Convergence meeting, potential in acute and chronic inflammation. • NKTR-255: Data published in blood and ASH, showed ability to enhance CAR-T therapies, and presented late breaking abstract at SITC on recovering radiation induced lymphopenia in NSCLC patients. • Sale of PEG manufacturing facility: Signed agreement to sell Huntsville facility to Ampersand Capital Partners, receiving $90 million, deal closes on December 2nd.

No specific absolute financial performance and revenue contribution percentages provided for product segments, but discussed progress in various pipelines including REZPEG in atopic dermatitis and alopecia areata studies, NKTR-165's IND enabling studies, NKTR-422's preclinical data, NKTR-255 in oncology, and the sale of the PEG manufacturing facility.

• Revenue: Expect full year 2024 revenue between $90 million and $95 million, including $60 million to $65 million in non-cash royalties and $30 million to $35 million in product sales. • R&D expense: Anticipate full year 2024 R&D expense between $120 million and $130 million with approximately $10 million in non-cash expense. • G&A expense: Expect full year 2024 G&A expense between $75 million and $80 million with non-cash portion approximately $12 million. • Cash runway: Proceeds from sale extend cash runway into fourth quarter of 2026, expect to end 2024 with approximately $265 million in cash and investments.

• Ongoing litigation: Litigation against Eli Lilly, in process of mediation, unable to comment on damages or timeline in detail.

Q: Could you quantify how close we're getting to bringing both the AD and AA studies to the finish line?

A: Started AD trial in Oct 2023, top line data in first half of 2025; AA study started later, top line data in second half of 2025, will update clinicaltrials.gov when enrollment complete.

Q: When could damages be publicly specified in litigation against Eli Lilly?

A: Can't comment on ongoing lawsuit, in mediation process.

Q: Baseline characteristics of REZPEG AD trial patients?

A: Fully blinded study, will provide clear baseline traits and top line data for different doses vs placebo.

Q: Do serum proteomic biomarkers in AD stay reduced after REZPEG therapy stopped?

A: Phase 1b study collected data up to week 12, Phase 2 study will collect data through maintenance and follow up.

Q: Timing shift in alopecia study?

A: Study began later, enrollment in Canada, US, Europe, on projected timelines.

Q: Other cell populations in SITC poster?

A: Assessed NK cell effects, phenotypic analysis, T-cell populations, and recovery of specific cell populations.

Q: Off-treatment control in AD study?

A: After 52 weeks of total treatment, patients followed for 52 weeks with no further treatment to assess remittance effect.