Nektar Therapeutics shares fall on wider-than-expected loss
Thursday May 8, 12:34 pm ET
Nektar Therapeutics shares drop on 1st-quarter loss following loss of Exubera revenue
NEW YORK (AP) -- Shares of Nektar Therapeutics Inc. fell Thursday after the biotechnology company reported a wider-than-expected first-quarter loss, primarily because of the loss of revenue from the inhaled insulin Exubera.
The company also said it would end all negotiations to find a development and distribution partner for the drug, which was discontinued by Pfizer Inc. in October because of lackluster sales.
Shares fell 41 cents, or 8 percent, to $4.80 in afternoon trading. The stock has traded between $4.43 and $12.45 over the past 52 weeks.
Late Wednesday, the San Carlos, Calif.-based company said it lost $40.7 million, or 44 cents per share, compared with a loss of $25.7 million, or 28 cents per share, during the same period a year prior. Revenue plunged to $20 million from $85 million because of the loss of Exubera sales.
Analysts polled by Thomson Financial expected profit of 33 cents per share on revenue of $29 million.
Nektar had partnered with Pfizer to develop and sell Exubera, but Pfizer discontinued the product in October because of disappointing sales. Marketing rights were given back to Nektar.
The company also pegged the wider loss to a $4.1 million expense for maintaining Exubera manufacturing capacity and $5.3 million for job cuts. In February, it cut about 150 employees, or about 20 percent of its work force.
"Today we have moved past inhaled insulin, and our proprietary small molecule PEGylation drug development platform is generating a great deal of industry and scientific interest," President and Chief Executive Howard W. Robin said in a statement. "We intend to build and advance our impressive pipeline while continuing to exercise financial responsibility."
Analysts expect the impact of the Exubera loss to linger on the company's profit report throughout the year.
Friedman, Billings, Ramsey analyst Jim Reddoch reaffirmed a "Market Perform" rating, but lowered his price target to $6 from $7. He also changed his forecast for the year and expects a loss of $1.22 in 2008, wider than his prior outlook for a loss of 54 cents per share. He doesn't expect the company to be profitable until 2011.
Soleil Securities Group Inc. analyst Noelle Tune reaffirmed a "Hold" rating on the stock and said the company's development programs remain on track and a handful could advance by the end of the year.
surf's up......crikey
