Why Nektar Shares Are Down Almost 35%

Shares of Nektar Therapeutics NKTR have come under pressure after the company “announced the discontinuation of the remaining clinical development programs of bempeg + nivo (Opdivo) in collaboration with Bristo,” according to BofA Securities.

The Nektar Therapeutics Analyst: Greg Harrison reiterated an Underperform rating for Nektar Therapeutics while reducing the price target from $6 to $5.

The Nektar Therapeutics Thesis: With the discontinuation of bempeg and Opdivo programs, investor focus is expected to shift towards the company’s pipeline programs, NKTR-255 and NKTR-358, Harrison said in the note.

“While both programs are early in development, we think upcoming updates will provide Nektar the opportunity to showcase the potential of NKTR-358 (Phase 1b data in AD/psoriasis in 2022 and phase 2 data in SLE/UC in 22/23),” the analyst wrote.

“Given the discontinuation of bempeg programs and limited near-term catalysts we would need to see compelling data from the earlier stage pipeline to become more positive on shares,” he added.

NKTR Price Action: Shares of Nektar Therapeutics had nosedived by 34.82% to $4.01 at the time of publication Monday.

Photo: Courtesy Nektar Therapeutics