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Nektar Therapeutics has strong cash on hand, but a long timeline ahead

Nektar Therapeutics said at its second-quarter earnings call on Aug. 13 that its $1.02 billion cash balance gives it financing runway through 2028. The company also said enrollment has started in phase 3 trials for rezpegaldesleukin, its lead drug candidate, known as rezpeg, in two autoimmune diseases. Still, widening losses, higher R&D spending and a data timeline stretching to 2029 are continuing to pressure the stock’s market perception.

Which dates stand out in the phase 3 program?

First atopic dermatitis data is expected in mid-2028

The company’s atopic dermatitis program, ZENITH AD, began randomization in two key studies in July 2026. Each study will enroll a total of 510 adolescents and adults. A third study for patients who have already tried other treatments is also planned to begin by the end of September 2026. Management aims to see top-line data from the first studies in mid-2028 and, if the results are positive, file for a biologics license in 2029.

Alopecia areata study has been set as a single-registration trial

Following a phase 2 meeting with the U.S. Food and Drug Administration (FDA), the company designed a single-registration phase 3 study called ZENITH AA for alopecia areata. The trial will enroll 850 patients, with the main endpoint set as a SALT score of 20 or lower at week 52, in other words at least 80% scalp coverage. Data from this program are expected in the second half of 2029.

Management argues that the market opportunity for rezpeg is not limited to the clinical design. According to the company, the number of patients with moderate to severe atopic dermatitis in the U.S. is about 15 million, and fewer than 10% of them are receiving systemic treatment. The company also said its own market research found that 150 of 151 physicians surveyed preferred rezpeg’s short-lived injection-site reactions over the longer-lasting conjunctivitis associated with current options.

Why do the financials and market indicators look cautious?

Despite the strong cash position, the company’s income statement remains weak. Operating loss widened to $42.3 million in the second quarter from $36.2 million a year earlier. Net loss came in at $40.6 million, or $1.23 per share.

  • R&D spending guidance for the full year was raised to a range of $210 million to $230 million.
  • Most of the company’s revenue still comes from non-cash royalty income, which totaled $10.1 million in the second quarter.
  • Full-year revenue guidance remains capped at $45 million.
  • A public share offering in April 2026 brought in $373.8 million in gross proceeds, but it also diluted existing shareholders.

The risks are not limited to the balance sheet. A jury trial in federal court in San Francisco is scheduled to begin on Sept. 8, 2026. Meanwhile, the number of hedge funds holding Nektar fell to 50 from 56 in the previous quarter, while short interest reached 19.92% of shares outstanding, pointing to a sizable skeptical camp in the market. The picture suggests that although the company has strong cash resources, investors are not convinced until they see phase 3 results.

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