UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
8-K
CURRENT
REPORT
Pursuant
to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date
of report (Date of earliest event reported): April 30, 2015
NEKTAR
THERAPEUTICS
(Exact
Name of Registrant as Specified in Charter)
Delaware |
0-24006 |
94-3134940 |
(State or Other Jurisdiction of Incorporation) |
(Commission
File Number) |
(IRS Employer
Identification No.) |
|
|
|
455
Mission Bay Boulevard South
San
Francisco, California 94158
(Address
of Principal Executive Offices and Zip Code)
Registrant’s
telephone number, including area code: (415) 482-5300
Check
the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant
under any of the following provisions:
☐ |
Written
communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
☐ |
Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
☐ |
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
☐ |
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
|
|
Item 2.02 |
Results
of Operations and Financial Condition. |
On
April 30, 2015, Nektar Therapeutics, a Delaware corporation (“Nektar”), issued a press release (the “Press Release”)
announcing its financial results for the quarter ended March 31, 2015. A copy of the Press Release is furnished herewith
as Exhibit 99.1.
On
April 23, 2015, Nektar announced that it would hold a Webcast conference call on April 30, 2015 to review financial results for
the quarter ended March 31, 2015. This conference call is accessible through a link that is posted on the home page and Investor
Relations section of the Nektar website: http://www.nektar.com.
The
information in this report, including the exhibit hereto, is being furnished and shall not be deemed “filed” for purposes
of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section or Sections
11 and 12(a)(2) of the Securities Act of 1933, as amended. The information contained herein and in the accompanying exhibit shall
not be incorporated by reference into any filing with the Securities and Exchange Commission made by Nektar Therapeutics, whether
made before or after the date hereof, regardless of any general incorporation language in such filing.
Item 9.01 |
Financial
Statements and Exhibits. |
Exhibit
No. |
|
Description |
|
|
99.1 |
|
Press release titled
“Nektar Therapeutics Reports Financial Results for the First Quarter of 2015” issued by Nektar Therapeutics on
April 30, 2015. |
SIGNATURES
Pursuant
to the requirement of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf
by the undersigned thereunto duly authorized.
|
|
|
|
|
|
|
|
By: |
/s/
Gil M. Labrucherie |
|
|
|
Gil
M. Labrucherie |
|
|
|
General
Counsel and Secretary |
|
|
|
|
Date: |
April
30, 2015
|
EXHIBIT
INDEX
Exhibit
No. |
|
Description |
|
|
99.1 |
|
Press release titled
“Nektar Therapeutics Reports Financial Results for the First Quarter of 2015” issued by Nektar Therapeutics on
April 30, 2015. |
News
Release
Nektar
Therapeutics Reports Financial Results for the
First
Quarter of 2015
SAN
FRANCISCO, Calif., April 30, 2015 -- Nektar Therapeutics (Nasdaq: NKTR) today reported its financial results for the first
quarter ended March 31, 2015.
Cash
and investments in marketable securities at March 31, 2015 were $325.8 million as compared to $262.8 million at December 31, 2014.
Our cash and investments in marketable securities at March 31, 2015 includes a $100.0 million milestone payment received from
AstraZeneca in Q1 2015 for the first commercial sale of Movantik™(naloxegol) in the U.S.
"The
recent U.S. launch of Movantik by AstraZeneca is progressing well and this first-in-class medicine to treat OIC is now being made
available in several European countries," said Howard W. Robin, President and Chief Executive Officer of Nektar. "In
the first quarter, we initiated enrollment for the SUMMIT-07 efficacy study of NKTR-181 in patients with chronic low back pain.
We are also finalizing preparations for our new cancer immunotherapy, NKTR-214, to enter clinical studies this year. With the
recent launch of Movantik and the anticipated approval of BAX 855 in Q4, we are beginning to see important new medicines emerging
from our late-stage pipeline that should drive Nektar's near-term revenue. Importantly, we have three additional partnered drug
candidates in Phase 3 which are expected to have data readouts in 2016 and should continue to build our revenue base in the future."
Revenue
for the first quarter of 2015 was $108.8 million as compared to $19.8 million in the first quarter of 2014. The increase in revenue
in the first quarter of 2015 as compared to the first quarter of 2014 is due to the recognition of $90.0 million of the $100.0
million milestone payment from AstraZeneca following the first commercial sale of Movantik in the U.S. Revenue also included non-cash
royalty revenue, related to our 2012 royalty monetization, of $4.0 million and $5.8 million in the three months ended March 31,
2015 and 2014, respectively. This non-cash royalty revenue is offset by non-cash interest expense.
Total
operating costs and expenses for the first quarter of 2015 were $65.8 million as compared to $56.2 million in the first quarter
of 2014. Total operating costs and expenses increased primarily as a result of increased research and development (R&D) expense.
R&D
expense in the first quarter of 2015 was $47.0 million as compared to $38.3 million for the first quarter of 2014. R&D expense
was higher in the first quarter of 2015 primarily due to the initiation of the Phase 3 efficacy study of NKTR-181 in patients
with chronic low back pain. Additionally, R&D expense in the first quarter of 2015 included costs related to the continued
production of devices for the ongoing Phase 3 studies of Amikacin Inhale, the ongoing Phase 3 study of NKTR-102 in breast cancer,
the ongoing Phase 1 study of NKTR-171, and IND enabling activities for NKTR-214 which will enter the clinic in 2015.
General
and administrative expense was $10.3 million in the first quarter of 2015 as compared to $9.9 million in the first quarter of
2014.
In
Q1 2015, net income was $33.8 million, or $0.26 basic earnings per share. This compared to a net loss of $46.2 million or ($0.37)
basic loss per share in Q1 2014.
Corporate
Highlights
| • | Movantik
launched in the U.S. on March 31, 2015 for the treatment of opioid-induced constipation
(OIC) in adult patients with chronic, non-cancer pain. First commercial sale triggered
$100 million milestone payment to Nektar by partner AstraZeneca. |
| • | New
drug application submitted for BAX 855 to Japan’s Ministry of Health, on April
16, 2015. |
| • | BAX
855 pediatric study completed enrollment. Data from the study will support post-approval
label expansion by Baxter in the U.S. for previously treated pediatric patients and European
regulatory submission in 2016. |
| • | NKTR-181
Phase 3 SUMMIT-07 study in opioid naïve patients with chronic low back pain began
enrollment in February 2015. |
| • | Data
from the Phase 3 BEACON study of NKTR-102 in metastatic breast cancer selected for oral
abstract presentation at the 2015 ASCO Annual Meeting in Chicago. |
Presentation
Details:
Abstract
#1001: "Phase III trial of etirinotecan pegol (EP) versus Treatment of Physician’s Choice (TPC) in patients (pts) with
advanced breast cancer (aBC) whose disease has progressed following anthracycline (A), taxane (T) and capecitabine (C): The BEACON
study.", Perez, E., et al.
Oral
Abstract Session: "Breast Cancer—Triple-Negative/Cytotoxics/Local Therapy"
Date:
June 1, 2015, 3:12 p.m. — 3:24 p.m. Central Time
Conference
Call to Discuss First Quarter 2015 Financial Results
Nektar management
will host a conference call to review the results beginning at 5:00 p.m. Eastern Time/2:00 p.m. Pacific Time today, Thursday,
April 30, 2015.
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
Investor Relations section of the Nektar website: http://www.nektar.com. The web broadcast of the conference call will be available
for replay through Monday, June 1, 2015.
|
To access the conference call, follow these
instructions: |
|
|
|
Dial: (877) 881.2183 (U.S.); (970) 315.0453 (international) |
|
Passcode: 33513793 (Nektar Therapeutics is the host) |
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 Investor Relations page at the Nektar website
as soon as practical after the conclusion of the conference call.
About
Nektar
Nektar
Therapeutics has a robust R&D pipeline in pain, oncology, hemophilia and other therapeutic areas. In the area of pain, Nektar
has an exclusive worldwide license agreement with AstraZeneca for MOVANTIK™ (naloxegol), the first FDA-approved once-daily
oral peripherally-acting mu-opioid receptor antagonist (PAMORA) medication for the treatment of opioid-induced constipation (OIC),
in adult patients with chronic, non-cancer pain. The product is also approved in the European Union as MOVENTIG® and is indicated
for adult patients with OIC who have had an inadequate response to laxatives. The AstraZeneca agreement also includes NKTR-119,
an earlier stage development program that is a co-formulation of MOVANTIK™ and an opioid. NKTR-181, a wholly-owned mu-opioid
analgesic molecule for chronic pain conditions, is in Phase 3 development. NKTR-171, a wholly-owned new sodium channel blocker
being developed as an oral therapy for the treatment of peripheral neuropathic pain, is in Phase 1 clinical development. In hemophilia,
BAX 855, a longer-acting PEGylated Factor VIII therapeutic is in Phase 3 development conducted by partner Baxter. A BLA for BAX
855 was filed by Baxter to the US FDA in December, 2014 and is currently under review. In anti-infectives, Amikacin Inhale is
in Phase 3 studies conducted by Bayer Healthcare as an adjunctive treatment for intubated and mechanically ventilated patients
with Gram-negative pneumonia.
Nektar's
technology has enabled nine approved products in the U.S. or Europe through partnerships with leading biopharmaceutical companies,
including AstraZeneca's MOVANTIK™, UCB's Cimzia® for Crohn's disease and rheumatoid arthritis, Roche's PEGASYS®
for hepatitis C and Amgen's Neulasta® for neutropenia.
Nektar
is headquartered in San Francisco, California, with additional operations in Huntsville, Alabama and Hyderabad, India. Further
information about the company and its drug development programs and capabilities may be found online at http://www.nektar.com.
MOVANTIK™
is a trademark and MOVENTIG® is a registered trademark of the AstraZeneca group of companies.
Cautionary
Note Regarding Forward-Looking Statements
This
press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act
of 1995. Forward-looking statements can be identified by words such as: "anticipate," "intend," "plan,"
"expect," "believe," "should," "may," "will" and similar references to future
periods. Examples of forward-looking statements include, among others, statements we make regarding the potential of MOVANTIK
(naloxegol), BAX 855, the future revenue potential from our collaboration partnerships, the timing of availability of future clinical
trial data from our collaboration partners, the timing of the expected start date of the clinical program for NKTR-214, and the
value and potential of our polymer conjugate technology and research and development pipeline. Forward-looking statements are
neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations
and assumptions regarding the future of our business, future plans and strategies, anticipated events and trends, the economy
and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties,
risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results
may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking
statements. Important factors that could cause our actual results to differ materially from those indicated in the forward-looking
statements include, among others, (i) the commercial potential of a new drug at the early stages of commercial launch, such as
MOVANTIK, is difficult to predict and will have a significant impact on our future results of operation and financial condition;
(ii) scientific discovery of new medical breakthroughs is an inherently uncertain process and the future success of the application
of our technology platform to potential new drug candidates is therefore highly uncertain and unpredictable and one or more research
and development programs could fail; (iii) patents may not issue from our patent applications for our drugs (including MOVANTIK
and BAX 855) and drug candidates, patents that have issued may not be enforceable, or additional intellectual property licenses
from third parties may be required; and (iv) the outcome of any existing or future intellectual property or other litigation related
to our drugs and drug candidates and those of our collaboration partners including MOVANTIK and BAX 855. Other important risks
and uncertainties set forth in our Annual Report on Form 10-K filed with the Securities and Exchange Commission (SEC) on February
26, 2015 and our Current Report on Form 8-K filed with the SEC on March 17, 2015. Any forward-looking statement made by us in
this press release is based only on information currently available to us and speaks only as of the date on which it is made.
We undertake no obligation to update any forward-looking statement, whether written or oral, that may be made from time to time,
whether as a result of new information, future developments or otherwise.
Contact:
Investors
Jennifer
Ruddock of Nektar Therapeutics
415-482-5585
Media
Nadia
Hasan of WCG
212-257-6738
NEKTAR
THERAPEUTICS |
CONDENSED
CONSOLIDATED BALANCE SHEETS |
(In
thousands) |
(Unaudited) |
ASSETS | |
| March
31,
2015 | |
| December
31, 2014 | |
Current assets: | |
| | |
| | |
Cash and
cash equivalents | |
$ | 129,452 | |
$ | 12,365 | |
Restricted cash | |
| 25,000 | |
| 25,000 | |
Short-term investments | |
| 171,353 | |
| 225,459 | |
Accounts receivable,
net | |
| 2,885 | |
| 3,607 | |
Inventory | |
| 12,511 | |
| 12,952 | |
Other
current assets | |
| 6,092 | |
| 8,817 | |
Total current assets | |
| 347,293 | |
| 288,200 | |
| |
| | |
| | |
Property, plant and
equipment, net | |
| 69,267 | |
| 70,368 | |
Goodwill | |
| 76,501 | |
| 76,501 | |
Other
assets | |
| 6,151 | |
| 6,552 | |
Total
assets | |
$ | 499,212 | |
$ | 441,621 | |
| |
| | |
| | |
LIABILITIES
AND STOCKHOLDERS' EQUITY | |
| | |
| | |
| |
| | |
| | |
Current liabilities: | |
| | |
| | |
Accounts payable | |
$ | 5,024 | |
$ | 2,703 | |
Accrued compensation | |
| 9,356 | |
| 5,749 | |
Accrued expenses | |
| 8,245 | |
| 6,418 | |
Accrued clinical trial
expenses | |
| 8,747 | |
| 7,708 | |
Interest payable | |
| 3,167 | |
| 6,917 | |
Capital lease obligations,
current portion | |
| 5,412 | |
| 4,512 | |
Deferred revenue,
current portion | |
| 24,959 | |
| 24,473 | |
Other
current liabilities | |
| 10,534 | |
| 5,567 | |
Total current liabilities | |
| 75,444 | |
| 64,047 | |
| |
| | |
| | |
Senior secured notes | |
| 125,000 | |
| 125,000 | |
Capital lease obligations,
less current portion | |
| 4,386 | |
| 4,139 | |
Liability related to
sale of future royalties | |
| 121,558 | |
| 120,471 | |
Deferred revenue, less
current portion | |
| 78,418 | |
| 76,911 | |
Other
long-term liabilities | |
| 17,101 | |
| 14,721 | |
Total liabilities | |
| 421,907 | |
| 405,289 | |
| |
| | |
| | |
Commitments and contingencies | |
| | |
| | |
| |
| | |
| | |
Stockholders' equity: | |
| | |
| | |
Preferred stock | |
| — | |
| — | |
Common stock | |
| 13 | |
| 13 | |
Capital in excess of par value | |
| 1,831,057 | |
| 1,824,195 | |
Accumulated other
comprehensive loss | |
| (1,276 | ) |
| (1,567 | ) |
Accumulated
deficit | |
| (1,752,489 | ) |
| (1,786,309 | ) |
Total
stockholders' equity | |
| 77,305 | |
| 36,332 | |
Total
liabilities and stockholders' equity | |
$ | 499,212 | |
$ | 441,621 | |
(1) |
The
consolidated balance sheet at December 31, 2014 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. |
|
|
|
|
|
|
|
|
|
|
|
NEKTAR
THERAPEUTICS |
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS |
(In
thousands, except per share information) |
(Unaudited) |
| |
| |
|
| |
Three Months Ended |
| |
March
31, |
| |
2015 | |
2014 |
| |
| |
|
Revenue: | |
| | | |
| | |
Product
sales and royalty revenue | |
$ | 8,099 | | |
$ | 5,917 | |
Non-cash
royalty revenue related to sale of future royalties | |
| 3,962 | | |
| 5,773 | |
License,
collaboration and other revenue | |
| 96,740 | | |
| 8,081 | |
Total revenue | |
| 108,801 | | |
| 19,771 | |
| |
| | | |
| | |
Operating costs and
expenses: | |
| | | |
| | |
Cost
of goods sold | |
| 8,444 | | |
| 7,907 | |
Research
and development | |
| 47,011 | | |
| 38,338 | |
General
and administrative | |
| 10,303 | | |
| 9,928 | |
Total
operating costs and expenses | |
| 65,758 | | |
| 56,173 | |
| |
| | | |
| | |
Income (loss) from
operations | |
| 43,043 | | |
| (36,402 | ) |
| |
| | | |
| | |
Non-operating income
(expense): | |
| | | |
| | |
Interest
expense | |
| (4,171 | ) | |
| (4,533 | ) |
Non-cash
interest expense on liability related to sale of future royalties | |
| (5,050 | ) | |
| (5,387 | ) |
Interest
income and other income (expense), net | |
| 211 | | |
| 312 | |
Total non-operating
expense, net | |
| (9,010 | ) | |
| (9,608 | ) |
| |
| | | |
| | |
Income (loss) before
provision for income taxes | |
| 34,033 | | |
| (46,010 | ) |
| |
| | | |
| | |
Provision
for income taxes | |
| 213 | | |
| 191 | |
Net
income (loss) | |
$ | 33,820 | | |
$ | (46,201 | ) |
| |
| | | |
| | |
Net income (loss) per share: | |
| | | |
| | |
Basic | |
$ | 0.26 | | |
$ | (0.37 | ) |
| |
| | | |
| | |
Diluted | |
$ | 0.25 | | |
$ | (0.37 | ) |
| |
| | | |
| | |
Weighted average shares
outstanding used in computing net income (loss) per share: | |
| | | |
| | |
Basic | |
| 131,359 | | |
| 123,543 | |
| |
| | | |
| | |
Diluted | |
| 135,667 | | |
| 123,543 | |
NEKTAR
THERAPEUTICS |
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS |
(In
thousands) |
(Unaudited) |
| |
Three
Months Ended March 31, |
| |
2015 | |
2014 |
Cash
flows from operating activities: | |
| | | |
| | |
Net
income (loss) | |
$ | 33,820 | | |
$ | (46,201 | ) |
Adjustments to reconcile
net income (loss) to net cash provided by (used in) operating activities: | |
| | | |
| | |
Non-cash royalty
revenue related to sale of future royalties | |
| (3,962 | ) | |
| (5,773 | ) |
Non-cash interest
expense on liability related to sale of future royalties | |
| 5,050 | | |
| 5,387 | |
Stock-based compensation | |
| 5,177 | | |
| 4,361 | |
Depreciation and
amortization | |
| 2,973 | | |
| 3,264 | |
Other non-cash
transactions | |
| (938 | ) | |
| 777 | |
Changes in operating
assets and liabilities: | |
| | | |
| | |
Accounts receivable,
net | |
| 722 | | |
| 374 | |
Inventory | |
| 441 | | |
| 580 | |
Other assets | |
| 2,809 | | |
| (718 | ) |
Accounts payable | |
| 2,241 | | |
| (6,126 | ) |
Accrued compensation | |
| 3,607 | | |
| (4,827 | ) |
Accrued expenses | |
| 1,811 | | |
| 693 | |
Accrued clinical
trial expenses | |
| 1,039 | | |
| (3,179 | ) |
Interest payable | |
| (3,750 | ) | |
| (3,750 | ) |
Deferred revenue | |
| 1,993 | | |
| (5,957 | ) |
Other
liabilities | |
| 10,279 | | |
| (1,195 | ) |
Net cash provided
by (used in) operating activities | |
| 63,312 | | |
| (62,290 | ) |
| |
| | | |
| | |
Cash
flows from investing activities: | |
| | | |
| | |
Maturities of investments | |
| 73,434 | | |
| 56,972 | |
Purchases of investments | |
| (24,432 | ) | |
| (110,661 | ) |
Sale of investments | |
| 5,215 | | |
| — | |
Purchases
of property and equipment | |
| (1,059 | ) | |
| (4,524 | ) |
Net cash provided
by (used in) investing activities | |
| 53,158 | | |
| (58,213 | ) |
| |
| | | |
| | |
Cash
flows from financing activities: | |
| | | |
| | |
Payment of capital
lease obligations | |
| (1,098 | ) | |
| (825 | ) |
Repayment of proceeds
from sale of future royalties | |
| — | | |
| (7,000 | ) |
Issuance of common
stock, net of issuance costs | |
| — | | |
| 116,619 | |
Proceeds
from shares issued under equity compensation plans | |
| 1,685 | | |
| 5,074 | |
Net cash provided
by financing activities | |
| 587 | | |
| 113,868 | |
| |
| | | |
| | |
Effect
of exchange rates on cash and cash equivalents | |
| 30 | | |
| 11 | |
Net increase (decrease)
in cash and cash equivalents | |
| 117,087 | | |
| (6,624 | ) |
Cash
and cash equivalents at beginning of period | |
| 12,365 | | |
| 39,067 | |
Cash
and cash equivalents at end of period | |
$ | 129,452 | | |
$ | 32,443 | |
| |
| | | |
| | |
Supplemental disclosure
of cash flow information: | |
| | | |
| | |
Cash
paid for interest | |
$ | 7,855 | | |
$ | 7,961 | |
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