Tuesday, December 14, 2010

Nektar (NASDAQ:NKTR) Moving NKTR-102 to Phase 3

After their NKTR-102 Phase 2 clinical trials for NKTR-102 came back with positive results, Nektar Therapeutics (NASDAQ:NKTR) will now bring it to Phase 3, presumably with the 21-day dose.

Barclays (NYSE:BCS) said, "Yesterday, Nektar announced positive detailed results from a Phase 2 clinical study evaluating single agent NKTR-102 in metastatic breast cancer patients who have received prior taxane. Recall, initial positive results announced 6/9/10. Nektar will move to Phase 3 in the breast cancer indication, likely with the 21-day dose.

"In addition, the company announced - contrary to Street expectations - that it no longer plans to partner NKTR-102. Among the reasons cited: attractiveness of the potential commercial opportunity (having become increasingly supported with new clinical data in the last year), desire to control development timeframe and bring the product to market as quickly as possible, and management's belief that retaining control will create greater long-term shareholder value. While we understand the rationale, we also believe that the trade-off is greater risk, as well as a delay in the valuation enhancement which would likely have resulted from a partner announcement."

Barclays maintains an "Equalweight" rating on Nektar Therapeutics, which closed Monday at $12.71, down $1.35, or 9.60 percent. Barclays has a price target of $14 on them.

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