Nektar Therapeutics — Third Quarter 2026 Earnings Summary

Financial Performance:

• Revenue for the third quarter of 2026 was $9.4 million, a decrease from $11.8 million in the third quarter of 2025; revenue for the first nine months of 2026 was $30.4 million, down from $33.4 million in the same period of 2025.
• Total operating costs and expenses for the third quarter of 2026 were $67.2 million, an increase from $43.5 million in the third quarter of 2025; for the first nine months of 2026, total operating costs and expenses were $169.6 million, up from $145.9 million in the first nine months of 2025.
• Research and development (R&D) expenses for the third quarter of 2026 were $44.1 million, compared to $27.3 million in the third quarter of 2025; for the first nine months of 2026, R&D expenses were $118.9 million, compared to $87.6 million in the first nine months of 2025.
• General and administrative (G&A) expenses for the third quarter of 2026 were $24.6 million, an increase from $16.1 million in the third quarter of 2025; for the first nine months of 2026, G&A expenses were $50.8 million, a decrease from $57.5 million in the first nine months of 2025.
• Net loss for the third quarter of 2026 was $55.7 million ($1.63 per share), compared to a net loss of $35.5 million ($1.87 per share) in the third quarter of 2025; for the first nine months of 2026, net loss was $141.2 million ($4.60 per share), compared to $128.0 million ($8.14 per share) in the first nine months of 2025.
• Cash and investments in marketable securities totaled $952.9 million as of September 30, 2026, compared to $245.8 million as of December 31, 2025.
• Non-cash loss from equity method investment in Gannet BioChem was $0.6 million in the third quarter of 2026, compared to $0.5 million in the third quarter of 2025; for the first nine months of 2026, this loss was $2.7 million, compared to $7.4 million in the first nine months of 2025.
• Total liabilities were $187.5 million as of September 30, 2026, compared to $190.6 million as of December 31, 2025; total stockholders' equity was $849.7 million as of September 30, 2026, compared to $89.8 million as of December 31, 2025.

Guidance and Future Outlook:

• Management expects topline data readouts for the ZENITH AD program in the summer of 2028, with a Biologics License Application (BLA) filing targeted for 2029.
• The global ZENITH AA registrational trial in alopecia areata is on track to begin in December 2026, which is earlier than previously planned.
• Initial topline data from the ZENITH AD program are expected in mid-2028.

Business Segments and Product Lines:

• In October 2026, Nektar initiated ZENITH AD-3, the third and final registrational trial in the global Phase 3 ZENITH AD program for rezpegaldesleukin in atopic dermatitis, enrolling patients with prior systemic biologic and/or JAK inhibitor treatment experience.
• In September 2026, data from a 100-patient biomarker sub-study of the Phase 2b REZOLVE-AD study showed early molecular responses to rezpegaldesleukin as early as Week 2 across multiple immune pathways, associated with subsequent clinical responses at Week 16.
• In August 2026, results from the 16-week induction period of the Phase 2b REZOLVE-AD study were published in The Lancet, meeting all primary and key secondary endpoints on the 24 micrograms per kilogram Q2W regimen, including EASI-75, EASI-90, vIGA-AD response, Itch NRS response, and BSA.
• In July 2026, Nektar initiated the first two global registrational trials (ZENITH AD-1 and ZENITH AD-2) in the Phase 3 ZENITH AD program for moderate-to-severe atopic dermatitis.
• In October 2026, data from the 52-week treatment extension and 6-month off-treatment period of the Phase 2b REZOLVE-AA study showed that 75% of patients achieving a SALT Score ≤20 maintained that response after four months off treatment, and 63% maintained it after six months off treatment.
• Rezpegaldesleukin is being evaluated as a novel, first-in-class regulatory T cell stimulator for atopic dermatitis, alopecia areata, and Type 1 diabetes mellitus.

Market and Competitive Landscape:

• No specific market share, competitor names, or market trend data were provided in the press release.

Risks and Challenges:

• The press release includes a standard cautionary note regarding forward-looking statements, highlighting risks such as negative safety and efficacy findings, high risk of failure in drug development, potential delays in clinical trials or regulatory approval, and uncertainties regarding patent issuance and enforceability.
• Specific risks mentioned include the possibility that data from ongoing trials may be preliminary, patient enrollment may be slower than anticipated, and manufacturing challenges may occur.

Management Commentary and Tone:

• Howard Robin, President and CEO, described the quarter as "pivotal" due to the rapid advancement of rezpegaldesleukin into Phase 3 development.
• Management expressed conviction in the drug's "novel and differentiated Treg mechanism" targeting multiple inflammatory pathways.
• The tone was confident regarding the potential of rezpegaldesleukin to offer an important new therapeutic approach for patients with chronic autoimmune diseases.

Other Key Points:

• The company hosted a conference call on November 12, 2026, to discuss the results, with a replay available through December 12, 2026.
• The balance sheet reflects a significant increase in capital in excess of par value, rising from $3.85 billion at December 31, 2025, to $4.76 billion at September 30, 2026.
• The company maintains a pipeline including preclinical bivalent TNFR2 antibody and bispecific programs (NKTR-0165 and NKTR-0166) and a modified hematopoietic colony stimulating factor (NKTR-422).