Nektar Therapeutics Q4 FY2025 earnings call

2025 was pivotal with progress in immunology and inflammation pipeline. Phase 2 studies of Respag Aldesleukin in atopic dermatitis, alopecia areata, and type 1 diabetes. Positive results from phase 2b studies of Rezpeg in atopic dermatitis and alopecia areata. Long-term monthly/quarterly dosing results from Resolve AD showed durability. Respag has unique Treg mechanism, differentiated efficacy, safety, and dosing. Phase 3 studies in atopic dermatitis to start in June, alignment with FDA on dose and design. Plans for phase 3 in alopecia areata, including 52-week data. Other pipeline programs like NKTR-0165 and NKTR-0166 with preclinical data and academic collaborations

Revenue was $21.8 million for the fourth quarter and $55.2 million for the full year 2025. R&D expenses were $29.7 million for the fourth quarter and $117.3 million for the full year. G&A expenses were $11.2 million for the fourth quarter and $68.7 million for the full year. Non-cash interest expense for the fourth quarter was $9.8 million and $26.2 million for the full year. Net loss for the fourth quarter was $36.1 million or $1.78 basic and diluted net loss per share. For the full year of 2025, net loss was $164.1 million or $9.73 basic and diluted net loss per share. 2026 guidance: Non-cash royalty revenue expected between $40M - $45M; R&D expense range $200M - $250M; G&A expense range $60M - $65M; non-cash interest expense range $30M - $35M; end 2026 cash and investments expected $400M - $460M

Preliminary 2026 guidance: Non-cash royalty revenue between $40M - $45M; R&D expense $200M - $250M; G&A expense $60M - $65M; non-cash interest expense $30M - $35M; end 2026 cash and investments $400M - $460M. Expect updated 2026 budget when phase 3 program starts in June

Q: Given congrats on presenting RESOLVE AA study at AAD, what new data could be seen and what ResPEG needs to show to be competitive.

A: Presentation in April will show data from 16-week extension. Need to show efficacy similar to low-dose JAK inhibitors in alopecia.

Q: Regarding phase 3 program in atopic dermatitis, would ACQ-5 data be in label and percentage of bio-experienced patients.

A: ACQ-5 included, plan to include in label. Roughly 25% bio-experienced, 75% naive.

Q: Formulation and ISR mitigation for phase 3.

A: Respag is low-volume, plan to launch in auto-injector. 99% ISRs mild-moderate, managed with cold compresses.

Q: In alopecia areata, dosing of patients reaching SALT 20 and impact on clinical adoption.

A: Data in April will show all patients in extension. Treg mechanism offers different profile.

Q: EASI-100 importance and incremental data in alopecia.

A: EASI-100 important for complete clearance. Data in April on extension, off-therapy data later.

Q: Type 1 diabetes study details and differentiation.

A: TrialNet selected Respag, study to evaluate Treg effect. Differentiated by outpatient dosing and safety.

Q: Patients in alopecia extension and LADY trial.

A: 23 patients in extension, LADY trial scheduled for September 8.

Q: Macro developments in atopic dermatitis and take on Pfizer's tri-specific asset.

A: Pfizer's data interesting, Respag's Treg mechanism offers holistic efficacy, market large with room for multiple agents