1. BlackBerry for biotech: A company that once had significant market excitement and promise for its innovative products (experimental drugs), but whose core offerings largely failed in clinical trials, leading to a drastic reduction in operations and a struggle to find its next successful path.

• Adynovate (pegadacase): An extended half-life recombinant Factor VIII therapy for Hemophilia A, developed using Nektar's PEGylation technology and licensed to Takeda.
• Movantik/Moventig (naloxegol): An oral peripherally-acting mu-opioid receptor antagonist for opioid-induced constipation, developed using Nektar's technology and licensed to AstraZeneca.
• Cimzia (certolizumab pegol): A PEGylated TNF-alpha inhibitor for autoimmune diseases like Crohn's disease and rheumatoid arthritis, developed using Nektar's technology and licensed to UCB.
• Bempegaldesleukin (BEMPEG): Formerly Nektar's lead immuno-oncology asset, an IL-2 pathway agonist developed with BMS, which failed in multiple late-stage clinical trials and was discontinued.
• Rezpegaldesleukin (NKTR-358): An investigational IL-2 selective agonist developed with Eli Lilly for autoimmune diseases, currently in Phase 2 clinical trials.

Nektar Therapeutics (NKTR) primarily sells to other companies, specifically larger pharmaceutical firms, through collaboration, licensing, and partnership agreements rather than directly to individuals. Their business model involves developing drug candidates and then partnering with other companies for further development, commercialization, and distribution, often receiving upfront payments, milestone payments, and potential royalties.

Based on recent financial reports, their major customer/partner for collaboration revenue is:

• Eli Lilly and Company (NYSE: LLY)

Historically, Bristol-Myers Squibb (BMS) was a significant partner, but that key collaboration was terminated in 2022.

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Howard W. Robin, President & Chief Executive Officer

Howard W. Robin joined Nektar Therapeutics in January 2007 and has over 40 years of successful biopharmaceutical experience. Prior to Nektar, he served as President and Chief Executive Officer of Sirna Therapeutics from 2001 to 2006, where he successfully re-launched the company, leading to its acquisition by Merck for $1.1 billion. Before Sirna, Mr. Robin spent 20 years at Berlex Laboratories, where he held positions including Corporate Vice President and General Manager of their U.S. Therapeutics division, and Vice President of Finance and Business Development and CFO.

Sandra Gardiner, Interim Chief Financial Officer

Sandra Gardiner was appointed acting Chief Financial Officer of Nektar Therapeutics in April 2023. She is a partner at FLG Partners, a CFO services firm, and brings over 30 years of experience as an EVP and CFO in both private and public Life Sciences companies. Her past roles include serving as CFO of Pulse Biosciences, Inc., a publicly traded medtech company, and holding CFO positions at VC-backed Aptus Endosystems, Inc., Ventus Medical, Inc., Vermillion, Inc., and Lipid Sciences, Inc. Ms. Gardiner has raised over $1 billion in capital and completed two M&A transactions.

Jonathan Zalevsky, Ph.D., Chief Research & Development Officer

Jonathan Zalevsky was appointed Nektar's Chief Research & Development Officer in October 2019 and joined the company in 2015. He has over 20 years of experience in the biotechnology and pharmaceutical industries. Prior to Nektar, Dr. Zalevsky was Global Vice President and Head of the Inflammation Drug Discovery Unit at Takeda Pharmaceuticals and held research and development positions at Xencor, where he oversaw the discovery and development of Xencor's first four clinical-stage assets.

John Northcott, Senior Vice President and Chief Commercial Officer

John Northcott joined Nektar Therapeutics in December 2019 as Senior Vice President and Chief Commercial Officer. He brings extensive commercial experience in oncology and other therapeutic areas. Before Nektar, Mr. Northcott served as the Chief Commercial Officer of Pharmacyclics from 2015 to 2019, where he led all commercial functions for Imbruvica. He also held commercial roles at Genentech and the Roche Group, including International Business Leader for Avastin.

Robert Bacci, Chief People Officer and Head of Quality & Facilities

Robert Bacci joined Nektar in 2001 and was appointed Chief People Officer and Head of Quality & Facilities in 2024. He has over 25 years of professional experience, including previous roles as an industrial hygienist and an affiliate faculty member in the MS Program in Organizational Leadership at Union University and Institute.

The key risks to Nektar Therapeutics' business include its heavy reliance on successful clinical development and regulatory approvals, significant financial challenges, and intense competition within the biotechnology sector.

1. Clinical Development and Regulatory Approval Risks: As a clinical-stage biopharmaceutical company, Nektar Therapeutics' viability is critically dependent on the successful outcome of its drug candidates in clinical trials and subsequent regulatory approvals. The inherent uncertainty of clinical trials means that delays or unfavorable results can severely impact the company's financial position and growth prospects. This risk is underscored by past setbacks, such as the failure of rezpegaldesleukin (NKTR-358) in a Phase II study for lupus, which led to its partner, Eli Lilly, discontinuing further development in that indication. The company's business will be significantly harmed if its lead candidates, particularly rezpegaldesleukin, do not continue to advance successfully through clinical studies. Furthermore, potential changes in regulatory standards, such as a higher bar for drug approvals under new FDA leadership, could further impact Nektar's pipeline.
2. Financial Health and Capital Requirements: Nektar Therapeutics faces substantial financial challenges, characterized by consistent net losses and a negative Return on Invested Capital (ROIC), indicating that the company is not generating sufficient returns to cover its cost of capital. The company has significant future capital requirements to fund its ongoing research and development activities. This necessitates careful financial management and may require additional fundraising efforts, potentially through debt or equity financing, which could dilute existing shareholders' ownership or increase the company's debt burden. An Altman Z-Score placing the company in the distress zone suggests a potential risk of bankruptcy.
3. Intense Competition and Market Dynamics: The biotechnology sector in which Nektar Therapeutics operates is highly competitive. The company faces competition from numerous established pharmaceutical companies and other biotechnology firms, many of which possess greater financial resources and more extensive research and development capabilities. This intense competition can significantly affect the success of Nektar's drug development programs, market penetration, and ability to achieve commercial success, even with approved therapies.

Nektar Therapeutics (symbol: NKTR) is a biopharmaceutical company focused on developing novel therapies for autoimmune disorders, chronic inflammatory conditions, and cancer. The addressable markets for their main product candidates are as follows:

Rezpegaldesleukin (REZPEG, NKTR-358)

• Atopic Dermatitis: Approximately 30 million people in the United States are affected by atopic dermatitis. The global addressable market for atopic dermatitis is expected to reach nearly $30 billion by 2033.
• Alopecia Areata: Nearly 6.7 million people in the U.S. and 160 million worldwide develop alopecia areata in their lifetime. Nektar estimates a potential market opportunity of an additional $1 billion in the U.S. for Rezpegaldesleukin if it is introduced as the first biologic in the setting of alopecia areata.

NKTR-255

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Bempegaldesleukin (BEMPEG, NKTR-214)

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• Advancement and Potential Commercialization of REZPEG in Atopic Dermatitis (AD): Rezpegaldesleukin (REZPEG) is Nektar's lead product candidate, and its Phase 2b REZOLVE-AD study for atopic dermatitis achieved statistical significance in June 2025. Nektar plans to advance REZPEG into Phase 3 development for AD, targeting a significant market with high unmet needs for new treatments. Further data from the RESOLVE-AD study is anticipated in Q1 2026.
• Progression and Market Entry of REZPEG in Alopecia Areata (AA): Top-line data from the Phase 2b RESOLVE-AA study for severe-to-very severe alopecia areata is expected in December 2025. Positive results could position REZPEG as the first biologic treatment for this condition, potentially opening up a new therapeutic option for patients and a new revenue stream for Nektar. The FDA has also granted Fast Track designation for this indication.
• Strategic Partnerships and Licensing for Pipeline Candidates: As a clinical-stage biotechnology company, Nektar is actively engaged in developing novel therapies. Future revenue growth is highly dependent on securing strategic partnerships for its lead programs, such as REZPEG, particularly as it moves into expensive Phase 3 trials. These collaborations can provide significant upfront payments, milestone payments, and future royalties.
• Development of NKTR-0165 (TNFR2 Agonist Antibody Program): Nektar is advancing NKTR-0165, its TNFR2 agonist antibody program, through IND-enabling studies in 2025, with an Investigational New Drug (IND) filing targeted for the end of the year. This program holds potential for treating multiple sclerosis, ulcerative colitis, and vitiligo, and successful progression could lead to future licensing agreements or commercialization opportunities.
• Expansion of REZPEG into New Indications like Type 1 Diabetes: Beyond dermatological conditions, Nektar plans to evaluate REZPEG in Type 1 Diabetes, with potential for clinical advancements in 2026. Successful expansion into new therapeutic areas could significantly broaden REZPEG's market potential and contribute to long-term revenue growth.

Share Repurchases

No significant share repurchase programs or activities were identified for Nektar Therapeutics within the 3-5 year timeframe (2020-2025).

Share Issuance

• In July 2025, Nektar Therapeutics completed a public offering of common stock, raising $115 million in gross proceeds by selling 4,893,618 shares at $23.50 per share, with net proceeds of approximately $107.2 million.
• The company raised additional capital through an at-the-market (ATM) offering, with net proceeds of $34.3 million in September 2025 and $38.3 million in October 2025.
• In June 2024, the board approved an increase of 8,000,000 shares available for issuance under the Amended and Restated 2017 Performance Incentive Plan.

Inbound Investments

• In December 2020, Nektar sold rights to receive royalties on future worldwide sales of ADYNOVATE/ADYNOVI and MOVANTIK/MOVANTIG, with potential payments ranging from $210.0 million to $240.0 million depending on a 2025 threshold.
• An amendment to the 2020 Purchase and Sale Agreement in March 2024 removed the royalty cap in exchange for a $15.0 million payment to Nektar.

Outbound Investments

• In the first quarter of 2025, Nektar began accounting for its investment in a new portfolio company, Gannet BioChem, under the equity method, incurring non-cash losses from this investment in subsequent quarters of 2025.
• In November 2024, Nektar sold its commercial PEGylation manufacturing business in Huntsville, Alabama, to Ampersand Capital Partners for an enterprise value of $90 million, consisting of $70 million in cash and $20 million in equity ownership in the new company.

Capital Expenditures

Specific dollar amounts for capital expenditures were not readily available in the provided information. However, Nektar Therapeutics emphasizes significant multi-year capital commitment to advance its drug candidates through research and development.