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What: Oh, how sweet it is! Shares of small-cap biopharmaceutical company Nektar Therapeutics (Nasdaq: NKTR) spiked 16% today after the company agreed to sell the royalty rights to two of its drugs.

So what: Nektar agreed to sell its royalty rights to Cimzia, its Crohn's disease and rheumatoid arthritis drug marketed by UCB Pharma, and Mircera, a treatment for anemia sold by Roche (OTC: RHHBY). RPI Finance Trust bought the rights for $124 million. Certain thresholds were built into this agreement, so if Mircera doesn't hit undisclosed worldwide sales targets, Nektar would be on the hook through 2017 for annual payments ranging from $3 million to $7 million.

Now what: Given that Nektar is a late-stage clinical trial-based company, it's going to burn through cash in its quest for the next blockbuster drug, so today's move to secure more cash is definitely a smart one. Of course, I'm not too keen on the fact that it now has, more or less, no profit-potential royalty drugs under its wings. Selling its royalties was a necessary move, but it's not one that will get me on board with the Nektar Therapeutics bulls.

Craving more input? Start by adding Nektar Therapeutics to your free and personalized watchlist so you can keep up on the latest news with the company.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.