Nektar Q2 Earnings Beat Estimates, Revenues Lag, Pipeline in Focus

Nektar sold its Huntsville manufacturing facility in December 2024, following which the company no longer records product revenues and lower non-cash royalty revenues. The company’s top line currently comprises non-cash royalty revenues.

Year to date, shares of Nektar have rallied 79.6% against the industry’s decrease of 0.7%.

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NKTR's Q2 Results in Detail

In the second quarter, research and development (R&D) expenses were $39.1 million, up 30.8% year over year, reflecting higher costs for developing its pipeline candidate, rezpegaldesleukin (rezpeg).

General and administrative (G&A) expenses decreased 25.1% year over year to $12.8 million in the reported quarter, owing to lower legal expenses.

As of June 30, 2026, Nektar had cash and cash equivalents and marketable securities worth $1.02 billion compared with $731.6 million as of March 31, 2026.

2026 Guidance

Nektar expects its non-cash royalty revenues to be around $40-$45 million in 2026.

R&D costs for 2026 are expected to be between $210 million and $230 million. G&A expenses are anticipated to be in the range of $60-$65 million.

Nektar expects to end 2026 with approximately $815-$840 million in cash.

NKTR's Key Pipeline Updates

Nektar's lead pipeline candidate, rezpeg, is being developed as a self-administered injection for several autoimmune and inflammatory diseases. Rezpeg selectively activates regulatory T-cells to calm the immune system and reduce inflammation.

Last month, Nektar initiated two late-stage studies – ZENITH AD-1 and ZENITH AD-2 – which are part of the phase III ZENITH AD program, investigating rezpeg in patients who are aged 12 years or above with moderate-to-severe atopic dermatitis.

The phase III ZENITH AD program comprises three double-blind, placebo-controlled studies evaluating rezpeg in moderate-to-severe atopic dermatitis, also known as eczema.

The ZENITH AD-1 and ZENITH AD-2 studies will enroll patients who are systemic biologic/JAK inhibitor treatment-naïve, while the third study – ZENITH AD-3 – will enroll patients with prior systemic biologic and/or JAK inhibitor treatment experience.

The ZENITH AD-3 study is scheduled to begin in September.

Initial top-line data from the ZENITH AD program are expected to be announced in mid-2028. If successful, the company expects to file a biologics license application for rezpeg to treat moderate-to-severe atopic dermatitis in 2029.

Besides atopic dermatitis, rezpeg is being developed as a self-administered injection for other autoimmune and inflammatory diseases, including alopecia areata and type I diabetes.

The company plans to initiate a single registrational phase III study on rezpeg for treating alopecia areata in early 2027.

Meanwhile, initial data from the phase II study evaluating rezpeg in type I diabetes is also expected to be announced in 2027.

Nektar regained full rights to rezpeg from pharma giant Eli Lilly LLY in April 2023 and took charge of its clinical development. Rezpeg was earlier developed in collaboration with LLY for several autoimmune indications.

Rezpeg is now a wholly-owned asset of Nektar, and the company owes no royalty payments to Eli Lilly.

NKTR's Zacks Rank & Other Stocks to Consider

Nektar currently carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the drug/biotech sector are Repligen RGEN and Amneal Pharmaceuticals AMRX, each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Over the past 60 days, estimates for Repligen’s 2026 earnings per share have risen from $1.99 to $2.06, while estimates for 2027 have increased from $2.57 to $2.62 during the same time. RGEN shares have gained 2.2% year to date.

Repligen’s earnings beat estimates in each of the trailing four quarters, with the average surprise being 16.80%.

Over the past 60 days, estimates for Amneal’s 2026 earnings per share have risen from $1.00 to $1.02, while estimates for 2027 have increased from $1.12 to $1.21 during the same time. AMRX shares have surged 37.1% year to date.

Amneal’s earnings beat estimates in each of the trailing four quarters, with the average surprise being 32.82%.

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This article originally published on Zacks Investment Research (zacks.com).

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