Why Is Nektar Therapeutics Stock Surging Today?

Nektar Therapeutics Inc NKTR said its former partner Eli Lilly And Co LLY had presented "erroneous data" from two Phase 1b studies of its atopic dermatitis drug, rezpegaldesleukin (Rezpeg).

The new and corrected data from the atopic dermatitis study demonstrate that 12 weeks of REZPEG therapy at the highest dose resulted in a mean Eczema Area and Severity Index (EASI) score improvement of 83% with a p-value of 0.002 as compared to placebo and an EASI-75 response rate of 41%, versus 66% and 29% on the original analysis.

Rezpeg also provided a more rapid and steep drop in EASI scores immediately after therapy initiation than the previously reported erroneous data indicated. This efficacy benefit was also maintained for 36 weeks without additional treatment after the 12-week induction period.

In April, Nektar Therapeutics announced a strategic plan to reprioritize assets and restructure costs.

Regarding clinical programs, Nektar will prioritize the development of Rezpeg, either in collaboration with current partner Eli Lilly or on its own in the future. 

"The internal statistical and clinical teams in charge of the two studies at Lilly were made aware that Nektar discovered the data errors," Nektar wrote in a release. "Lilly confirmed the errors in written communications with Nektar."

Price Action: NKTR shares are up 60.3% at $0.85 on the last check Monday.