Cash and investments in marketable securities at December 31, 2017 were $353.2 million as compared to $389.1 million at December 31, 2016.
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SAN FRANCISCO, March 1, 2018 /PRNewswire/ -- Nektar Therapeutics (Nasdaq: NKTR) today reported its financial results for the fourth quarter and year ended December 31, 2017. Cash and investments in marketable securities at December 31, 2017 were $353.2 million as compared to $389.1 million at December 31, 2016. This does not include $1.85 billion in upfront payments from the new Bristol-Myers Squibb collaboration, which was announced on February 14, 2018. "This past year was truly transformational for Nektar as we achieved a number of successes with Nektar medicines across our three key therapeutic areas of immuno-oncology, immunology and pain," said Howard W. Robin, President and Chief Executive Officer of Nektar. "In the area of pain, we completed a successful Phase 3 program for NKTR-181 in over 2,100 patients and healthy volunteers that will comprise our NDA submission in the second quarter of this year. In immunology, we entered into a major partnership with Eli Lilly for NKTR-358, a potential first-in-class T regulatory resolution therapeutic, which will be developed to treat a broad range of auto-immune disorders. Finally, in immuno-oncology, the clinical success we achieved with NKTR-214 led to a groundbreaking collaboration with Bristol-Myers Squibb that now enables us to broadly and rapidly advance NKTR-214 into over 20 registrational trials in up to 15,000 patients." Summary of Financial Results Revenue for the fourth quarter of 2017 was $95.5 million as compared to $37.5 million in the fourth quarter of 2016. Revenue in the fourth quarter of 2017 included a total of $60.0 million of non-recurring revenue related to a new sublicense agreement, a contract settlement agreement and the recognition of deferred revenue from several collaboration agreements. Revenue for the year ended December 31, 2017 was $307.7 million as compared to $165.4 million in 2016. Revenue in 2017 included recognition of $130.1 million of the $150.0 million upfront payment from Nektar's collaboration with Eli Lilly & Company for the development and commercialization of NKTR-358. Total operating costs and expenses in the fourth quarter of 2017 were $119.5 million as compared to $69.6 million in the fourth quarter of 2016. Total operating costs and expenses increased primarily as a result of higher research and development (R&D) expense. Total operating costs and expenses for the year ended December 31, 2017 were $367.4 million as compared to $278.3 million in 2016. R&D expense in the fourth quarter of 2017 was $81.4 million as compared to $50.2 million for the fourth quarter of 2016. R&D expense for the year ended December 31, 2017 was $268.5 million as compared to $203.8 million in 2016. R&D expense was higher in 2017 as compared to 2016 primarily because of expenses for our pipeline programs, including the completion of Phase 3 clinical studies for NKTR-181, Phase 1/2 clinical studies of NKTR-214 and NKTR-358, and IND-enabling activities for NKTR-262 and NKTR-255. General and administrative (G&A) expense was $12.3 million in the fourth quarter of 2017 as compared to $12.8 million in the fourth quarter of 2016. G&A expense for the year ended December 31, 2017 was $52.4 million as compared to $44.3 million in 2016. Net loss for the fourth quarter of 2017 was $33.8 million or $0.21 loss per share as compared to a net loss of $42.2 million or $0.28 loss per share in the fourth quarter of 2016. Net loss for the year ended December 31, 2017 was $96.7 million or $0.62 loss per share as compared to a net loss of $153.5 million or $1.10 loss per share in 2016. 2017 and Year-to-Date Business Highlights
The company also announced upcoming presentations at the following scientific congresses during the first half of 2018: American Association for Cancer Research (AACR) Annual Meeting 2018, Chicago, IL:
Antigen-Specific Immune Tolerance Drug Development Summit 2018, Boston, MA:
American Academy of Pain Medicine 34th Annual Meeting, Vancouver, BC:
Treg Directed Therapy for Autoimmune Disorders Meeting, Boston, MA:
3rd Annual Advances in Immuno-Oncology Congress, London, U.K.:
College on Problems of Drug Dependence 80th Annual Scientific Meeting, San Diego, CA:
Conference Call to Discuss Fourth Quarter and Year-End 2017 Financial Results This press release and a live audio-only Webcast of the conference call can be accessed through a link that is posted on the home page and Investors section of the Nektar website: http://ir.nektar.com/. The web broadcast of the conference call will be available for replay through Monday, April 2, 2018. To access the conference call, follow these instructions: Dial: (877) 881.2183 (U.S.); (970) 315.0453 (international) In the event that any non-GAAP financial measure is discussed on the conference call that is not described in the press release, or explained on the conference call, related information will be made available on the Investors page at the Nektar website as soon as practical after the conclusion of the conference call. About Nektar Therapeutics
Cautionary Note Regarding Forward-Looking Statements Contact: Jodi Sievers of Nektar Therapeutics For Media: NEKTAR THERAPEUTICS
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
ASSETS December 31, 2017 (1) December 31, 2016 (1)
----------------- -----------------
Current assets:
Cash and cash equivalents $4,762 $59,640
Short-term investments 291,370 329,462
Accounts receivable, net 5,014 15,678
Inventory 10,726 11,109
Other current assets 14,948 10,063
--------------------
Total current assets 326,820 425,952
Long-term investments 57,088 -
Property, plant and equipment, net 47,463 65,601
Goodwill 76,501 76,501
Other assets 994 817
--- ---
Total assets $508,866 $568,871
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $4,782 $2,816
Accrued compensation 8,263 18,280
Accrued clinical trial expenses 9,461 7,958
Other accrued expenses 10,064 4,711
Interest payable 4,198 4,198
Liability related to refundable upfront
payment - 12,500
Deferred revenue, current portion 18,949 14,352
Other current liabilities 446 7,407
--------------------
Total current liabilities 56,163 72,222
Senior secured notes, net 245,207 243,464
Liability related to the sale of future royalties, net 94,655 105,950
Deferred revenue, less current portion 19,021 51,887
Other long-term liabilities 5,992 7,223
----- -----
Total liabilities 421,038 480,746
Commitments and contingencies
Stockholders' equity:
Preferred stock - -
Common stock 15 15
Capital in excess of par value 2,207,865 2,111,483
Accumulated other comprehensive loss (2,111) (2,363)
Accumulated deficit (2,117,941) (2,021,010)
-------------------
Total stockholders' equity 87,828 88,125
Total liabilities and stockholders'
equity $508,866 $568,871
====================================
(1) The consolidated balance
sheets at December 31, 2017 and
2016 have been derived from the
audited financial statements at
those dates but do not include
all of the information and
notes required by generally
accepted accounting principles
in the United States for
complete financial statements.
NEKTAR THERAPEUTICS
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share information)
(Unaudited)
Three Months Ended December 31, Year Ended December 31,
------------------------------- -----------------------
2017 2016 2017 (1) 2016 (1)
---- ---- ---- ----
Revenue:
Product sales $7,791 $13,690 $32,688 $55,354
Royalty revenue 9,574 6,392 33,527 19,542
Non-cash royalty
revenue related to
sale of future
royalties 9,164 7,817 30,531 30,158
License,
collaboration and
other revenue 68,937 9,553 210,965 60,382
------ ----- ------- ------
Total revenue 95,466 37,452 307,711 165,436
Operating costs and expenses:
Cost of goods sold 9,753 6,604 30,547 30,215
Research and
development 81,429 50,232 268,461 203,801
General and
administrative 12,337 12,760 52,364 44,275
Impairment of
equipment and other
costs for
terminated program 15,981 - 15,981 -
Total operating
costs and expenses 119,500 69,596 367,353 278,291
------- ------ ------- -------
Loss from operations (24,034) (32,144) (59,642) (112,855)
Non-operating income (expense):
Interest expense (5,633) (5,550) (22,085) (22,468)
Non-cash interest
expense on
liability related
to sale of future
royalties (5,334) (4,783) (18,869) (19,712)
Interest income and
other income
(expense), net 1,357 721 4,520 2,387
----- --- ----- -----
Total non-operating
expense, net (9,610) (9,612) (36,434) (39,793)
Loss before
provision for
income taxes (33,644) (41,756) (96,076) (152,648)
Provision for income
taxes 182 443 616 876
--- --- --- ---
Net loss $(33,826) $(42,199) $(96,692) $(153,524)
======== ======== ======== =========
Basic and diluted
net loss per share $(0.21) $(0.28) $(0.62) $(1.10)
====== ====== ====== ======
Weighted average
shares outstanding
used in computing
basic and diluted
net loss per share 158,324 149,071 155,953 139,596
======= ======= ======= =======
(1) The consolidated statements
of operations for the years
ended December 31, 2017 and
2016 have been derived from the
audited financial statements as
of those dates but do not
include all of the information
and notes required by generally
accepted accounting principles
in the United States for
complete financial statements.
NEKTAR THERAPEUTICS
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Year Ended December 31,
-----------------------
2017 (1) 2016 (1)
---- ----
Cash flows from operating activities:
Net loss $(96,692) $(153,524)
Adjustments to reconcile net loss to net cash used in operating activities:
Non-cash royalty revenue related to sale of future royalties (30,531) (30,158)
Non-cash interest expense on liability related to sale of
future royalties 18,869 19,712
Stock-based compensation 36,615 25,850
Depreciation and amortization 14,741 15,351
Impairment of equipment from terminated program 15,081 -
Other non-cash transactions (881) (2,185)
Changes in operating assets and liabilities:
Accounts receivable, net 10,664 4,269
Inventory 383 237
Other assets (4,800) (312)
Accounts payable 2,074 518
Accrued compensation (10,017) 12,282
Accrued clinical trial expenses 1,503 (262)
Other accrued expenses 5,774 191
Liability related to refundable upfront payment (12,500) 12,500
Deferred revenue (28,269) (17,615)
Other liabilities (2,428) (3,878)
------ ------
Net cash used in operating activities (80,414) (117,024)
Cash flows from investing activities:
Purchases of investments (404,425) (334,659)
Maturities of investments 347,743 253,682
Sales of investments 37,549 4,969
Purchases of property, plant and equipment (9,676) (6,392)
------ ------
Net cash used in investing activities (28,809) (82,400)
Cash flows from financing activities:
Payment of capital lease obligations (5,131) (5,945)
Proceeds from shares issued under equity compensation plans 59,522 20,287
Issuance of common stock, net of issuance costs - 189,276
--- -------
Net cash provided by financing activities 54,391 203,618
Effect of exchange rates on cash and cash equivalents (46) (124)
--- ----
Net increase (decrease) in cash and cash equivalents (54,878) 4,070
Cash and cash equivalents at beginning of year 59,640 55,570
Cash and cash equivalents at end of year $4,762 $59,640
====== =======
Supplemental disclosure of cash flow information:
Cash paid for interest $20,116 $20,589
======= =======
Cash paid for income taxes $556 $757
==== ====
(1) The consolidated statements
of cash flows for the years
ended December 31, 2017 and
2016 have been derived from the
audited financial statements as
of those dates but do not
include all of the information
and notes required by generally
accepted accounting principles
in the United States for
complete financial statements.
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Company Codes: NASDAQ-NMS:NKTR |
