Nektar Therapeutics Files 2023 Annual Report on Form 10-K

TL;DR

<b>Nektar Therapeutics filed its 2023 10-K, detailing restructuring efforts, key partnerships, and customer concentration risks.</b>

AI Summary

NEKTAR THERAPEUTICS (NKTR) filed a Annual Report (10-K) with the SEC on March 5, 2024. Nektar Therapeutics filed its 10-K report for the fiscal year ending December 31, 2023. The filing includes details on restructuring plans initiated in 2022 and 2023, including facility closings and lease-related actions. Key agreements mentioned include the Bristol Myers Squibb Collaboration Agreement (Nektar 214) from April 2018 and a Share Purchase Agreement from April 2018. The company has experienced customer concentration risk, with Pfizer and AstraZeneca AB noted as significant customers in 2022 and 2023. Financial data points such as Additional Paid-In Capital and Retained Earnings as of December 31, 2023, are included.

Why It Matters

For investors and stakeholders tracking NEKTAR THERAPEUTICS, this filing contains several important signals. The 10-K filing provides a comprehensive overview of Nektar's financial health, operational activities, and strategic initiatives for the fiscal year 2023, including significant restructuring plans. Information on customer concentration risk highlights the company's reliance on major partners like Pfizer and AstraZeneca, which is crucial for understanding revenue stability and future growth prospects.

Risk Assessment

Risk Level: medium — NEKTAR THERAPEUTICS shows moderate risk based on this filing. The company faces medium risk due to customer concentration, with significant revenue derived from a few key partners like Pfizer and AstraZeneca, as noted in the 2022 and 2023 sales data.

Analyst Insight

Investors should closely examine Nektar's revenue diversification strategies and the long-term outlook of its key partnerships to assess future financial performance.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reported period)
• 2024-03-05 — Filing Date (Date of submission)
• 2022-01-01 — Restructuring Plan Start Date (TwoThousandTwentyTwoAndTwoThousandTwentyThreeRestructuringPlansMember)
• 2018-04-30 — Share Purchase Agreement Date (BristolMyersSquibbCompanyMember)

Key Players & Entities

• Nektar Therapeutics (company) — Filer name
• Pfizer (company) — Customer concentration risk
• AstraZeneca AB (company) — Customer concentration risk
• Bristol Myers Squibb Company (company) — Collaboration Agreement
• 455 MISSION BAY BOULEVARD SOUTH (address) — Business and Mail Address
• SAN FRANCISCO (location) — Business and Mail Address City
• DE (location) — State of Incorporation
• 2023-12-31 (date) — Fiscal Year End

FAQ

Risk Factors

• Customer Concentration Risk [medium — financial]: The company faces significant revenue dependence on a limited number of customers, including Pfizer and AstraZeneca AB, which could impact financial results if these relationships change.
• Restructuring Plans [medium — operational]: Nektar has undertaken multiple restructuring plans, including facility closings and lease terminations, which involve operational complexities and potential associated costs.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K filing.
• 2024-03-05: Filing Date — Date the 10-K was officially submitted to the SEC.

Glossary

10-K

An annual report required by the U.S. Securities and Exchange Commission (SEC), which gives a comprehensive summary of a company's financial performance. (This filing provides the most detailed look into Nektar Therapeutics' financial standing and operations for the fiscal year 2023.)

Key Financial Figures

• $0.0001 — nge on Which Registered Common Stock, $0.0001 par value NKTR NASDAQ Capital Marke

Filing Documents

• nktr-20231231.htm (10-K) — 2929KB
• nktr-ex21_1.htm (EX-21.1) — 1KB
• nktr-ex23_1.htm (EX-23.1) — 9KB
• nktr-ex31_1.htm (EX-31.1) — 12KB
• nktr-ex31_2.htm (EX-31.2) — 12KB
• nktr-ex32_1.htm (EX-32.1) — 9KB
• nktr-ex97.htm (EX-97) — 37KB
• img21475920_0.jpg (GRAPHIC) — 304KB
• 0000950170-24-026249.txt (&nbsp;) — 13648KB
• nktr-20231231.xsd (EX-101.SCH) — 1789KB
• nktr-20231231_htm.xml (XML) — 2581KB

Business

Business 5 Item 1A.

Risk Factors

Risk Factors 18 Item 1B. Unresolved Staff Comments 37 Item 1C. Cybersecurity 37 Item 2.

Properties

Properties 38 Item 3.

Legal Proceedings

Legal Proceedings 38 Item 4. Mine Safety Disclosures 38 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 39 Item 6. Reserved 40 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 41 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 52 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 53 Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure 88 Item 9A.

Controls and Procedures

Controls and Procedures 88 Item 9B. Other Information 89 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 89 PART III Item 10. Directors, Executive Officers and Corporate Governance 90 Item 11.

Executive Compensation

Executive Compensation 90 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 90 Item 13. Certain Relationships and Related Transactions and Director Independence 90 Item 14. Principal Accountant Fees and Services 90 PART IV Item 15. Exhibits and Financial Statement Schedules 91

Signatures

Signatures 96 2 Table of Contents Forward-Looking Sta tements This report includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are "forward-looking statements" for purposes of this annual report on Form 10-K, including any projections of market size, earnings, revenue, milestone payments, royalties, sales or other financial items, any statements of the plans and objectives of management for future operations (including, but not limited to, preclinical development, clinical trials and manufacturing), any statements related to our financial condition and future working capital needs, any statements related to our prior strategic reorganization and cost restructuring plans, any statements regarding potential future financing alternatives, any statements concerning proposed drug candidates and our future research and development plans, any statements regarding the timing for the start or end of clinical trials or submission of regulatory approval filings, any statements regarding future economic conditions or performance, any statements regarding the initiation, formation, or success of our collaboration arrangements, commercialization activities and product sales levels and future payments that may come due to us under these arrangements, any statements regarding our plans and objectives to initiate or continue clinical trials, any statements related to potential, anticipated, or ongoing litigation and any statements of assumptions underlying any of the foregoing. In some cases, forward-looking statements can be identified by the use of terminology such as "believe," "may," "will," "expects," "plans," "anticipates," "estimates," "potential" or "continue," or the negative thereof or other comparable terminology. Although we believe that the expectations reflected in the forward

. Business

Item 1 . Business Nektar Therapeutics is a clinical stage, research-based drug discovery biopharmaceutical company focused on discovering and developing innovative medicines in the field of immunotherapy. Within this growing field, we direct our efforts toward creating new immunomodulatory agents that selectively induce, amplify, attenuate or prevent immune responses in order to achieve desired therapeutic outcomes. We apply our deep understanding of immunology and unparalleled expertise in polymer chemistry to create innovative drug candidates and use our drug development expertise to advance these molecules through preclinical and clinical development. Our pipeline of clinical-stage and preclinical-stage immunomodulatory agents targets the treatment of autoimmune diseases (e.g. rezpegaldesleukin and NKTR-0165, respectively) and cancer (e.g. NKTR-255). We continue to make significant investments in building and advancing our pipeline of drug candidates as we believe that this is the best strategy to build long-term shareholder value. Our Drug Candidates and Pipeline By modulating the immune system, our drug candidates target pathways that play critical roles in a wide range of serious diseases. In autoimmune diseases, our focus is on addressing imbalances in the immune system to restore the body's self-tolerance mechanisms and to achieve immune homeostasis. In oncology, we are focused on activating the immune system's natural tumor-fighting mechanisms. Autoimmune diseases We recognize that many autoimmune diseases are caused by an imbalance in the body's immune system. A failure of the body's self-tolerance mechanisms enables the formation of pathogenic T cells that cause the immune system to mistakenly attack and damage healthy cells in a person's body. Current systemic treatments for autoimmune diseases, including corticosteroids and anti-TNF agents, suppress the immune system broadly and come with severe side effects. Pharmaceutical agents designed to

View Full Filing

View this 10-K filing on SEC EDGAR