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portefeuille (99.78)

NKTR

Recs

5

March 02, 2011 – Comments (1)

It might be a good time to buy a few NKTR shares. NKTR shares are currently one of the larger positions of my "fund" (see here). There are currently 3830 NKTR shares in the fund with break-even of around 10.78 USD. NKTR is at around $9.17 now.

zzlangerhans on NKTR.

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Nektar's recent share price decline comes despite encouraging data for PEGylated irinotecan NKTR-102 in breast cancer and ovarian cancer. The pullback appears to be due to a rebalancing of demand as more conservative biotech investors depart now that the company has declared their intention of proceeding to phase III trials of NKTR-102 without a partner. For the long-term, sales are likely a better strategy than royalties as long as the company is able to manage their debt with a looming repayment deadline in 2012.

The GBMB is not a long-term strategy, so I wouldn't look at Nektar for a real-life buy unless the pullback continued into the single digits.

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(from here)

1 Comments – Post Your Own

#1) On March 02, 2011 at 3:28 PM, portefeuille (99.78) wrote:

more from zzlangerhans on NKTR.

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Nektar (NKTR) - market cap 909M, share price 9.64. Cash 303M, debt 234M, burn 6-9M/quarter. Nektar had a great upward run from the 2009 crash that culminated in a price of 16 last fall. Investors were obviously happy with a lucrative deal with Astra-Zeneca on PEGylated anti-opioid NKTR-118 as well as significant progress with PEGylated irinotecan NKTR-102 in multiple tumor types. Four months later, Nektar is sliding into the single digits after the company announced they would proceed to phase III trials of NKTR-102 without a partner and promptly raised 220M in a dilutive financing. How much lower can Nektar go? Keep in mind that the market cap doesn't yet reflect the new shares from dilution so the value isn't as good as it looks on the surface. The downward momentum on the six-month price chart is ugly. And it's unclear if there will be any significant positive catalysts before ASCO in May. But the company does have a promising anti-neoplastic agent in NKTR-102 as well as impending initiation of phase III trials from the AZ collaboration. I'll set a tentative GBMB buy level of 9 but I want to see a clear break in the losing trend as well as a better idea of the 2011 timetable with the next quarterly call on March 1.

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(from here)

 

Jan. 11, 2011, JP Morgan 29th Annual Healthcare Conference presentation

presentation (pdf)

Nektar Therapeutics Reports Fourth Quarter and Year End 2010 Financial Results

Q4 and Year-End 2010 Financial Results Call Tuesday, March 1, 2011 2:00 p.m. PT

 

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