LLY - Nektar Therapeutics up 7% after hours on restructuring plan

April, 17 2023 05:46 PM Eli Lilly and Company

2023-04-17 17:46:12 ET

Nektar Therapeutics ( NASDAQ: NKTR ) will implement a reprioritization and cost restructuring plan that also involves a new pipeline focus on immunology.
The biotech will also cut its San Francisco-based workforce by 60%, leaving it with ~55 employees.
The company, which is up ~7% in after-hours trading, said the cost-cutting measures will extend its cash runway into mid 2026.
Nektar ( NKTR ) intends to continue working on development of REZPEG under an existing agreement with Eli Lilly or if the company regains the rights to the candidate. It is in phase 2 for lupus and phase 1 for psoriasis and atopic dermatitis.
The company will also continue development of NKTR-255 while pursuing a partner. The asset is in phase 2/3 for large B-cell lymphoma in combination with other oncologics, and earlier stages for other cancers.
Seeking Alpha's Quant Rating has viewed Nektar ( NKTR ) as a strong sell since Feb. 16.

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