BMY - Nektar hit by major setback with melanoma trial failure for lead asset - BofA

Clinical-stage biotech Nektar Therapeutics (NKTR -55.0%) continues to trade sharply lower on Monday after the company announced its lead candidate bempegaldesleukin failed to meet the main goals in a late-stage study in melanoma in combination with Opdivo from Bristol Myers (NYSE:BMY). In reaction, Bank of America has downgraded the stock to Underperform from Neutral, arguing that the setback is “a major blow” to Nektar (NASDAQ:NKTR). The price target set to $6 per share indicates a downside ~44% to the last close. According to analyst Greg Harrison, the update was the first of three pivotal readouts the company has planned for bempeg over the next few months. The interleukin -2 agonist was also undergoing two additional studies for renal cell carcinoma and bladder cancer. However, Harrison argues that melanoma “seemed like the best chance for success” for the therapy as IL-2 is already approved for the indication. With no benefit for progression-free

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Nektar hit by “major” setback with melanoma trial failure for lead asset - BofA