Nektar Therapeutics Announces Second Quarter 2008 Results
Cash, cash equivalents, and short-term investments were $373.9 million atJune 30, 2008 compared to $412.6 million at March 31, 2008.
Revenue for the three month period ended June 30, 2008 was $20.4 millioncompared to revenue of $65.9 million in the second quarter of 2007. For thefirst half of 2008, revenue was $40.4 million as compared to $150.9 million inthe same period of 2007. This decrease in revenue is the result of lowerproduct manufacturing revenues due to the termination of the Exuberacollaboration by Pfizer in late 2007.
Nektar has made significant improvements to our operating efficiencies ascompared to a year ago. For the first half of 2008, the company's general andadministrative expense was $24.8 million as compared to $29.9 million for thesame period a year ago. Research and development expense was $70.9 million inthe first half of 2008 as compared to $78.5 million for the same six monthperiod in 2007. Included in the $70.9 million of overall research anddevelopment spending is approximately $32 million of new investments inNektar's preclinical and clinical development programs.
Nektar reported a net loss for the quarter ended June 30, 2008 of $33.4million or $0.36 per share, compared to a net loss of $27.5 million or $0.30per share in the second quarter of 2007. For the first half of 2008, thecompany reported a net loss of $74.1 million or $0.80 per share, compared to anet loss of $53.2 million or $0.58 per share for the same period in 2007.
The increase in net loss for the second quarter and first half of 2008compared to a year ago is primarily the result of a loss of gross marginassociated with Pfizer's termination of the Exubera collaboration andmaintenance of Exubera manufacturing capacity through April 2008. The finalspending and charges associated with the termination of the Exubera inhaledinsulin program were paid and recorded in the second quarter of 2008.
"Over the past year, Nektar has made excellent progress in expanding andadvancing our pipeline while at the same time maintaining financialdiscipline," said Nektar President and CEO Howard W. Robin. "In 2008, we willhave seven proprietary programs in clinical development and an impressivepreclinical pipeline of important, high-value therapeutics. We have executedon our strategy of building valuable proprietary programs without pursuing anydilutive financings."
Nektar will host a conference call today for analysts and investors at2:00 p.m. Pacific time to discuss the company's second quarter performance.This conference call will be available via webcast and can be accessed througha link that is posted on the Investor Relations section of the Nektar website,www.nektar.com. The web broadcast of the conference call will be available forreplay through August 20, 2008.
Nektar Therapeutics is a biopharmaceutical company that develops andenables differentiated therapeutics with its industry-leading PEGylation andpulmonary drug development platforms. Nektar's technology and drug developmentexpertise have enabled nine approved products for partners, which includeleading biopharmaceutical companies. Nektar is also developing a robustpipeline of its own high-value therapeutics that addresses unmet medical needsby leveraging and expanding its technology platforms to improve and enablemolecules. For more information on Nektar Therapeutics, please visithttp://www.nektar.com.
This press release contains forward-looking statements that reflect thecompany's current views regarding the potential, progress, and clinical plansfor the company's proprietary and partnered product pipeline, and the valueand potential of the company's technology
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