How Bempegaldesleukin Woes Have Impacted Nektar Therapeutics

by Trefis Team
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Bristol-Myers Squibb
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Nektar Therapeutics (NASDAQ: NKTR), a biopharmaceutical company based in San Francisco, is focused on discovering and developing medicines in areas that include cancer, autoimmune disease, and chronic pain. The stock is down by about 20% over the last month and by almost 50% in the last quarter, after faulty manufacturing of some batches of its immuno-oncology drug bempegaldesleukin impacted its effectiveness during a crucial trial. The drug was being given as a combination therapy with Bristol-Myers Squibb’s Opdivo. This delayed development of the combination therapy, and Bristol-Myers Squibb is likely to decide on whether it will carry out additional studies using the combo in October. The setback has hurt sentiment around the stock and brokerages have been increasingly bearish, with Goldman Sachs slashing its price target for the stock from $54 to $16. Below, we take a look at how the company has performed over the last few years and the outlook over the next 2 years.

View our interactive dashboard analysis on How Bempegaldesleukin Woes Are Hurting Nektar Therapeutics Stock

How does Nektar Therapeutics’ Revenue Growth in 2018 compare with that in prior periods and what’s the forecast?

Total Revenues for Nektar Therapeutics dramatically increased from $308 Mil in 2017 to $1.19 Bil in 2018; an increase of 288%, as the company recognized over $1 billion in revenues from a strategic collaboration with Bristol-Myers Squibb.

This compares with Total Revenues growth of:

  • 15.0% in 2015 compared to 2014
  • -28.3% in 2016 compared to 2015
  • 86.0% in 2017 compared to 2016

We expect Total Revenues to decline by 90% in 2019, due to the unfair comparison with last year as well as lower products and royalty revenue.

How does Nektar Therapeutics’ Total Expense in 2018 compare with that in prior periods and what’s the forecast?

Total Expense for Nektar Therapeutics significantly increased from $404 Mil in 2017 to $511 Mil in 2018; an increase of 26.5%.

This compares with Total Expense growth of:

  • 22.1% in 2015 compared to 2014
  • 2.13% in 2016 compared to 2015
  • 26.9% in 2017 compared to 2016

We expect Total Expense growth to be 3.9% in 2019.

How does Nektar Therapeutics’ EBT in 2018 compare with that in prior periods and what’s the forecast?

EBT for Nektar Therapeutics swung from a loss of $96 million in 2017 to a profit of $682 million in 2018.

We expect EBT to decline to a loss of $420 million in 2019.

How do Nektar Therapeutics’ Net Income and EPS in 2018 compare with that in prior periods and what’s the forecast?

Details about our estimates for Nektar Therapeutics’ Net Income and EPS are available in our interactive dashboard analysis.

 

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