Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Why Nektar Therapeutics Shares Tumbled

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Nektar Therapeutics (NASDAQ: NKTR  )  -- a clinical-stage biopharmaceutical company developing therapies based on its polymer conjugate technology platforms -- hit the deck, down as much as 27% after reporting disappointing preliminary top-line mid-stage results for NKTR-181.

So what: According to Nektar's press release, NKTR-181, which is designed to treat chronic pain associated with osteoarthritis of the knee, reduced pain by an average of 40% over the 213 of 295 patients that took the drug. A mere 3% saw no pain improvement while 18% dropped out due to adverse events. Although these results appear impressive, the placebo, which was expected to demonstrate a rise in patient pain levels, actually wound up reducing pain in patients as well. Therefore, without a statistically significant difference between the pain-reducing effect of NKTR-181 and the placebo, NKTR-181 failed to meet its primary endpoint. On the heels of this news Brean Capital chopped its price target on Nektar to $14 from $17 while Lazard Capital informed the Street that it felt today's weakness could represent a buying opportunity.

Now what: Even though this isn't how Nektar shareholders want to head into the weekend, today's disappointing news really isn't that bad, all things considered. Nektar has an incredibly diverse lineup of FDA-approved and pipeline products in various stages of development. It has multiple partnerships and collaborations and can monetize its royalty rights if it ever needs to in order to raise cash. It also has its own proprietary technology development platform, which is helping to develop its first crop of completely in-house therapies. In sum, this doesn't look like the time to run away from Nektar kicking and screaming. Instead, I would use today's sell-off as a reason to give this company a much more thorough review.

Two game-changing biotech stocks that also deserve your full attention
The best way to play the biotech space is to find companies that shun the status quo and instead discover revolutionary, groundbreaking technologies. In the Motley Fool's brand-new FREE report "2 Game-Changing Biotechs Revolutionizing the Way We Treat Cancer," find out about a new technology that big pharma is endorsing through partnerships, and the two companies that are set to profit from this emerging drug class. Click here to get your copy today.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2658730, ~/Articles/ArticleHandler.aspx, 9/27/2016 1:36:27 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,225.91 131.08 0.72%
S&P 500 2,159.99 13.89 0.65%
NASD 5,298.22 40.73 0.77%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/27/2016 1:20 PM
NKTR $17.98 Down -0.05 -0.28%
Nektar Therapeutic… CAPS Rating: **