Nektar Therapeutics Announces Second Quarter 2007 Financial Results
SAN CARLOS, Calif., Aug. 8 /PRNewswire-FirstCall/ -- Nektar Therapeutics
(Nasdaq: NKTR) announced today the company's financial results for the second
quarter that ended on June 30, 2007.
Revenue totaled $65.9 million compared to $60.2 million in the second
quarter of 2006. For the six months ended June 30, 2007, Nektar reported total
revenue of $150.9 million compared to $89.2 million in the same period in 2006.
Cash, cash equivalents, and short-term investments were $406.8 million at
June 30, 2007 compared to $398.3 million at March 31, 2007.
Nektar reported a net loss of $27.5 million or $0.30 per share (which
included $4.4 million of stock-based compensation charges and $7.7 million
related to a workforce reduction charge) in the second quarter of 2007 compared
to a net loss of $62.8 million or $0.70 per share in the same period of 2006
(which included $14.4 million of stock-based compensation charges).
For the six months ended June 30, 2007, net loss was $53.2 million or $0.58
per share compared to $96.3 million or $1.08 per share in the same period in
2006.
"From both a business development and operational perspective, this was a
breakthrough quarter for Nektar," said Howard W. Robin, President and Chief
Executive Officer. "Earlier this week, we announced an exceptional collaboration
with Bayer HealthCare for the development and co-commercialization of NKTR-061
(inhaled amikacin) to treat gram negative pneumonias. Additionally, we generated
positive cash flow for the quarter and our cash and investments increased by
$8.5 million. Going forward, we will continue to build value in both our
Pulmonary and PEGylation business units. That means striking new partnerships
and moving our proprietary clinical programs forward according to schedule."
Mr. Robin will host a conference call today for analysts and investors
beginning at 2:00 p.m. Pacific Time/5:00 p.m. Eastern Time to discuss the
company's performance. This conference call will be available via webcast and
can be accessed through a link that is posted on the Investor Relations section
of the Nektar website, http://www.nektar.com. The web broadcast of the
conference call will be available for replay through August 22, 2007.
To access the conference call via telephone, follow these instructions:
Dial: (800) 299-0433 (U.S.); (617) 801-9712 (international).
Passcode: 10086899 (Howard Robin is the host).
Audio replay dial-in and passcode:
Dial: (888) 286-8010 (U.S.);(617) 801-6888 (international)
Passcode: 59029899
About Nektar
Nektar Therapeutics is a biopharmaceutical company with a mission to develop
and enable differentiated therapeutics with its industry-leading pulmonary and
PEGylation technology platforms. Nektar pulmonary and PEGylation technology,
expertise, manufacturing capabilities and know-how have enabled nine approved
products for partners, which include the world's leading pharmaceutical and
biotechnology companies. Nektar also develops its own products by applying its
pulmonary and PEGylation technology platforms to existing medicines with the
objective to enhance performance, such as improving efficacy, safety and
compliance.
This press release contains forward-looking statements that reflect the
company's current views as to its financial plan, expectations regarding the
progress, potential, and clinical plans for the company's proprietary product
candidates in clinical development, the value of the company's technology
platforms, business development potential with respect to potential future
partnerships and overall prospects for the company's business. These
forward-looking statements involve risks and uncertainties, including but not
limited to: (i) the company's proprietary product candidates and those of
certain of its partners are in the early phases of clinical development and the
risk of failure is high and can occur at any stage prior to regulatory approval,
(ii) the company's or its partner's ability to obtain regulatory approval of its
proprietary product candidates, (iii) the company's or its partner's success in
obtaining regulatory approvals for product candidates, (iv) the company's patent
applications for its proprietary or partner product candidates may not issue,
patents that have issued may not be enforceable, or intellectual property
licenses from third parties may be required in the future, and (v) the outcome
of any existing or future intellectual property or other litigation related to
the company's proprietary product. Other important risks and uncertainties are
detailed in the company's reports and other filings with the Securities and
Exchange Commission, including its most recent Annual Report on Form 10-K and
Quarterly Report on Form 10-Q. Actual results could differ materially from the
forward-looking statements contained in this press release. The company
undertakes no obligation to update forward-looking statements, whether as a
result of new information, future events or otherwise.
NEKTAR THERAPEUTICS
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share information)
Unaudited Unaudited
Three-Months Ended Six-Months Ended
June 30, June 30,
2007 2006 2007 2006
Revenue:
Product sales and royalties $49,302 $47,147 $122,321 $60,043
Contract research 16,615 13,076 28,612 29,139
Total revenue 65,917 60,223 150,933 89,182
Operating costs and expenses:
Cost of goods sold 39,490 36,773 96,012 45,768
Research and development 41,000 40,610 78,492 72,011
General and administrative 13,178 27,083 29,913 47,456
Litigation Settlement -- 17,710 -- 17,710
Amortization of other
intangible assets 237 1,259 473 2,623
Total operating costs and expenses 93,905 123,435 204,890 185,568
Loss from operations (27,988) (63,212) (53,957) (96,386)
Interest income 5,452 6,374 10,925 11,256
Interest expense (4,702) (4,938) (9,635) (10,080)
Other expense, net (22) (1,055) (16) (1,092)
Loss before provision for income
taxes (27,260) (62,831) (52,683) (96,302)
Provision for income taxes (250) -- (500) --
Net loss $(27,510) $(62,831) $(53,183) $(96,302)
Basic and diluted net loss per
share $(0.30) $(0.70) $(0.58) $(1.08)
Shares used in computing basic and
diluted net loss per share 91,804 89,697 91,630 89,312
NEKTAR THERAPEUTICS
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
June 30, 2007 December 31, 2006
(unaudited) (1)
ASSETS
Current assets:
Cash and cash equivalents $82,856 $63,760
Short-term investments 323,933 394,880
Accounts receivable, net of
allowance 49,829 47,148
Inventory 17,228 14,656
Other current assets 9,520 14,595
Total current assets 483,366 535,039
Long-term investments -- 8,337
Property and equipment, net 131,024 133,812
Goodwill 78,431 78,431
Other intangible assets, net 3,153 3,626
Other assets 7,491 8,932
Total assets $703,465 $768,177
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $2,941 $7,205
Accrued compensation 14,376 12,994
Accrued expenses 16,342 17,942
Interest payable 3,106 3,814
Capital lease obligations, current
portion 811 711
Deferred revenue, current portion 13,762 16,409
Convertible subordinated notes,
current portion 66,627 102,653
Other current liabilities 3,362 3,586
Total current liabilities 121,327 165,314
Convertible subordinated notes 315,000 315,000
Capital lease obligations 19,328 19,759
Deferred revenue 43,296 23,697
Other long-term liabilities 15,834 17,347
Total liabilities 514,785 541,117
Commitments and contingencies
Stockholders' equity:
Preferred stock -- --
Common stock 9 9
Capital in excess of par value 1,298,380 1,283,982
Accumulated other comprehensive
income 467 62
Accumulated deficit (1,110,176) (1,056,993)
Total stockholders' equity 188,680 227,060
Total liabilities and stockholders'
equity $703,465 $768,177
(1) The consolidated balance sheet at December 31, 2006 has been derived from
the audited financial statements at that date but does not include all of
the information and notes required by generally accepted accounting
principles in the United States for complete financial statements. Certain
2006 amounts have been reclassified between line items to conform with the
2007 presentation.
Tim Warner, 650-283-4915 (investors)
twarner@nektar.com
Stephan Herrera, 415-488-7699 (investors)
sherrera@nektar.com
Jennifer Ruddock, 650-631-4954 (media)
jruddock@nektar.com
SOURCE Nektar Therapeutics