SAN FRANCISCO - Nektar Therapeutics (NASDAQ:NKTR) has revealed new preclinical findings on its investigative compound NKTR-0165, a potential treatment for autoimmune diseases, at the European Alliance of Associations for Rheumatology (EULAR) 2024 Congress held recently.
NKTR-0165 is a pioneering drug candidate, described as a tumor necrosis factor receptor 2 (TNFR2) agonist and bivalent antibody. It has been designed to selectively stimulate TNFR2 receptor activity, which plays a significant role in controlling inflammation.
The absence or reduction of TNFR2 activity is linked with a variety of autoimmune conditions. This receptor is predominantly found on regulatory T cells (Tregs), as well as neuronal and endothelial cells, and is crucial for Treg-mediated immunosuppression.
Jonathan Zalevsky, Ph.D., Nektar's Senior Vice President and Chief Research & Development Officer, stated that the preclinical data demonstrate NKTR-0165's unique ability to bind selectively to TNFR2 on Tregs, thereby enhancing their immunosuppressive functions. This could potentially position NKTR-0165 as a trailblazing therapy for autoimmune diseases like ulcerative colitis and vitiligo.
The preclinical studies show that NKTR-0165 binds selectively to TNFR2 on human Tregs, with minimal interaction with other immune cells expressing TNFR2. The compound's agonistic activity bolsters Treg lineage stabilization and boosts the production of proteins vital for Treg proliferation and functionality. Furthermore, in a humanized mouse model, NKTR-0165 demonstrated therapeutic efficacy by reducing inflammation through the targeted enhancement of Treg cell function via TNFR2 agonism.
Nektar Therapeutics is a clinical-stage biotech company focusing on developing treatments for autoimmune and chronic inflammatory diseases. Its pipeline includes rezpegaldesleukin (NKTR-358), currently in Phase 2b clinical trials for atopic dermatitis and alopecia areata, and the preclinical candidate NKTR-0165. IND-enabling studies for NKTR-0165 are in progress, with the first human studies expected to begin in the first half of 2025.
The company cautions that these forward-looking statements, including the therapeutic potential of NKTR-0165 and rezpegaldesleukin, are based on current beliefs and expectations and are subject to change. The investigational nature of NKTR-0165 means that it is subject to significant risks, including the possibility of negative outcomes in future clinical studies.
This article is based on a press release statement from Nektar Therapeutics.
In other recent news, Nektar Therapeutics reported a productive first quarter of 2024, focusing on the advancement of their immunology and inflammation pipeline, including their lead program, REZPEG, for moderate to severe atopic dermatitis and severe to very severe alopecia areata.
The company is also advancing its TNFR2 agonist antibody NKTR-0165 for various autoimmune diseases and exploring partnership opportunities for their oncology program, NKTR-255. Enrollment for the Phase 2b study of REZPEG is on track, with results expected in the first half of 2025.
Nektar is financially stable, ending the quarter with $326 million in cash and investments, and is expected to end 2024 with $200 million to $225 million. The company reported a net loss of $36.8 million, or $0.19 per share, for Q1 2024. However, the strong cash position is anticipated to last into Q3 2026, with full-year revenue projections between $75 million and $85 million.
These recent developments indicate that Nektar Therapeutics is committed to advancing its pipeline and optimistic about the potential of REZPEG and other programs. The company's financial health and strategic planning point towards a promising future, with a focus on delivering new treatment options for patients with autoimmune and inflammatory diseases, as well as cancer.
InvestingPro Insights
As Nektar Therapeutics (NASDAQ:NKTR) continues to make strides in the development of its autoimmune disease treatments, investors and stakeholders are closely monitoring the company's financial health and market performance. Here are some key insights from InvestingPro that may be of interest:
InvestingPro Data shows that Nektar Therapeutics holds a market capitalization of $241.99 million, which reflects the company's current valuation in the market. Despite challenging conditions, the firm's revenue over the last twelve months as of Q1 2024 stood at $90.17 million, with a modest revenue growth of 1.51%. The company's gross profit margin during this period was at a robust 60.91%.
From an investment perspective, two InvestingPro Tips stand out. Firstly, Nektar Therapeutics holds more cash than debt on its balance sheet, which can be a positive sign for investors looking for financial stability in the company. Secondly, the company's stock has experienced a significant price uptick over the last six months, with a 172.73% total return, suggesting a strong market performance in the short term.
Still, it is worth noting that analysts do not anticipate the company will be profitable this year, and the stock has fared poorly over the last month with a 28.41% decrease in total return. These factors may be crucial for potential investors to consider when evaluating the company's prospects.
For those interested in a deeper analysis, InvestingPro offers additional tips on Nektar Therapeutics, which can be accessed at https://www.investing.com/pro/NKTR. Readers can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, providing them with even more expert insights and tips to guide their investment decisions. There are 12 more InvestingPro Tips available that could provide valuable information for those following Nektar Therapeutics' journey in the biotech industry.
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