Nektar Therapeutics Reports 52% Revenue Decline and $41.6 Million Net Loss in Q2 2025

Nektar Therapeutics reported a significant decline in financial performance for the second quarter of 2025, with total revenue of $11.2 million, a 52% decrease from $23.5 million in the same period of 2024. The drop was primarily attributed to the absence of product sales following the sale of its manufacturing facility in December 2024, which eliminated revenue from product sales and associated costs. Non-cash royalty revenue also fell by 33% to $11.2 million, down from $16.8 million in the prior year, reflecting reduced royalty rates and the conclusion of certain royalty terms.

The company's operating expenses decreased by 35% to $47.4 million compared to $73.3 million in the previous year, largely due to a significant reduction in restructuring and impairment costs, which fell from $13.3 million to $0.4 million. Research and development expenses remained relatively stable, increasing slightly by 1% to $29.9 million, while general and administrative expenses decreased by 17% to $17.1 million. Despite these reductions, Nektar reported a net loss of $41.6 million for the quarter, an improvement from the $52.4 million loss in the same quarter of 2024.

Strategically, Nektar has focused on advancing its clinical pipeline, particularly the drug candidate rezpegaldesleukin, which is currently undergoing Phase 2b trials for multiple autoimmune conditions. The company announced that it has received Fast Track designations from the FDA for rezpegaldesleukin in the treatment of moderate-to-severe atopic dermatitis and severe alopecia areata. Additionally, Nektar entered into a collaboration agreement with TrialNet to evaluate rezpegaldesleukin in patients with new onset stage 3 type 1 diabetes mellitus.

Operationally, Nektar's total assets decreased to $207.5 million as of June 30, 2025, down from $303.9 million at the end of 2024. The company reported a cash and investments balance of approximately $175.9 million, which it believes will be sufficient to fund operations for at least the next twelve months. Nektar's employee headcount has also been reduced as part of its restructuring efforts, which included significant workforce reductions in 2022 and 2023.

Looking ahead, Nektar anticipates continued investment in its research and development programs, particularly for rezpegaldesleukin and other drug candidates. The company is exploring additional collaboration agreements to support its development costs and is focused on achieving regulatory approvals for its drug candidates. However, Nektar acknowledges the inherent risks and uncertainties associated with drug development, including the potential for clinical trial delays and the competitive landscape in the biopharmaceutical industry.