Nektar Therapeutics (NKTR) saw its loss widen to $43.22 million, or $0.32 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $8.20 million, or $0.06 a share. Revenue during the quarter plunged 39.39 percent to $36.34 million from $59.95 million in the previous year period. Gross margin for the quarter contracted 808 basis points over the previous year period to 80.64 percent. Operating margin for the quarter stood at negative 90.55 percent as compared to a positive 0.70 percent for the previous year period.
Operating loss for the quarter was $32.90 million, compared with an operating income of $0.42 million in the previous year period.
“Our pipeline is rapidly advancing with several important data catalysts and potential approvals expected over the next several quarters,” said Howard W. Robin, President and Chief Executive Officer of Nektar. “With the positive clinical results from our ongoing Phase 1 study of NKTR-214, we have now demonstrated that NKTR-214 is the first investigational medicine in immuno-oncology that selectively stimulates the in vivo proliferation of endogenous tumor-killing lymphocytes within the tumor micro-environment. In Q3, these data led to a broad clinical collaboration with Bristol-Myers Squibb to evaluate combination regimens with their anti-PD-1 agent in five different tumor types and at least seven indications. Within the next two quarters, we will have Phase 3 data for four programs: two Bayer anti-infective programs, Ophthotech’s Fovista in wet AMD, and our own proprietary pain program, NKTR-181, in chronic low back pain. We are also expecting a decision from the European CHMP on conditional approval of ONZEALD by the end of Q1 2017.”
Operating cash flow turns negative
Nektar Therapeutics has spent $64.61 million cash to meet operating activities during the nine month period as against cash inflow of $2.03 million in the last year period. Cash flow from investing activities was $59.70 million for the nine month period as against cash outgo of $7.13 million in the last year period.
Cash flow from financing activities was $12.66 million for the nine month period, up 8.08 percent or $0.95 million, when compared with the last year period.
Cash and cash equivalents stood at $63.30 million as on Sep. 30, 2016, up 236.34 percent or $44.48 million from $18.82 million on Sep. 30, 2015.
Working capital increases sharply
Nektar Therapeutics has recorded an increase in the working capital over the last year. It stood at $206.22 million as at Sep. 30, 2016, up 163.53 percent or $127.96 million from $78.25 million on Sep. 30, 2015. Current ratio was at 3.70 as on Sep. 30, 2016, up from 1.38 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 28 days for the quarter from 110 days for the last year period. Days sales outstanding went up to 23 days for the quarter compared with 5 days for the same period last year.
Days inventory outstanding has decreased to 70 days for the quarter compared with 139 days for the previous year period. At the same time, days payable outstanding went up to 65 days for the quarter from 35 for the same period last year.
Debt increases substantially
Nektar Therapeutics has witnessed an increase in total debt over the last one year. It stood at $247.52 million as on Sep. 30, 2016, up 87.20 percent or $115.30 million from $132.22 million on Sep. 30, 2015. Total debt was 58.23 percent of total assets as on Sep. 30, 2016, compared with 29.43 percent on Sep. 30, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
