Nektar shares rise as analysts looks to pipeline
Shares of biotechnology company Nektar Therapeutics Inc. jumped Wednesday as analysts brushed off the report of a fourth-quarter loss and focused instead on the company's pipeline of products.
The stock rose $1.53, or 12 percent, to $14.06 in afternoon trading. Shares earlier reached a 52-week high of $14.43.
On Tuesday, the San Carlos, Calif., company reported a surge in operating costs, which resulted in a quarterly loss of 8 cents per share. The higher costs were due to an odd comparison, as last year's results included a hefty $69.6 million gain from the sale of the company's pulmonary drug technology unit to Novartis. That gain offset costs in the year-ago period.
BMO Capital Markets analyst Robert Hazlett reaffirmed a "Outperform" rating, saying several material pipeline developments appear likely, including a potential partnership for NKTR-102, a developing cancer drug, in 2010. Other events include the beginning of a late-stage study for NKTR-118, which is aimed at treating opioid-induced constipation, or constipation related to the use of certain painkillers. AstraZeneca is the company's partner on NKTR-118.
Hazlett reaffirmed a $16 price target for the stock. He said the company could have two material partnerships move into late-stage studies in the next 12 months, along results for two cancer drugs.
Meanwhile, Cowen and Co. analyst Ian Sanderson reaffirmed a "Outperform" rating, saying study data and drug program partnerships will drive the stock in 2010.
Brean, Murray Carret & Co. analyst Jonathan Aschoff reiterated a "Buy" rating and a $15 price target.
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