Why Nektar Therapeutics Shares Soared

Nektar shares soar after receiving a favorable vote from an FDA advisory panel. Find out what this vote means for Nektar's shareholders.

Jun 13, 2014 at 2:01PM

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 biopharmaceutical company focused on developing drug candidates utilizing its proprietary PEGylation and polymer conjugate technology platforms, surged as much as 17% following a favorable ruling from an advisory committee to the Food and Drug Administration.

So what: Nektar, which helped design Movantik, an investigational treatment for opioid-induced constipation that's licensed globally to AstraZeneca (NYSE:AZN), along with other developers of opioid-induced chronic constipation therapies known as peripherally acting mu-opioid receptor antagonists, were given a free pass after the closing bell yesterday when the FDA's Anesthetic and Analgesic Drug Products Advisory Committee voted against requiring these drug manufacturers to complete a large cardiovascular outcomes trial. In total seven voted in favor of trials, five voted in favor of select trials, and 12 voted against the need for cardiovascular outcomes studies.

Now what: The good news for Nektar, as well as other OIC constipation drug developers is they won't have to spend millions of dollars and years testing the long-term effects of their drugs. As Reuters even reported, some panelists admitted to misunderstanding the question in a post vote discussion and would likely have switched their vote against the need for a CV outcomes trial. Nektar is an intriguing company that I'd suggest biotech-savvy investors keep a close eye on. Because of its predominantly complementary technology it tends to forge a lot of collaborations, giving the company a pretty healthy royalty stream. On the downside, despite a healthy pipeline, it looks as if sustained profitability is still a few years off. Nonetheless, its pipeline depth and proprietary technology may make it an intriguing play for the long-term, and as such I'd suggest adding Nektar to your watchlist.

Nektar shares may have soared today, but it's unlikely it'll be able to keep pace with this top stock over the long run
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Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong.

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4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

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David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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