Nektar Therapeutics (NASDAQ: NKTR) is having an overwhelmingly rough start to the trading session this morning after the company released data from a clinical trial. The underwhelming data is leading to fear among investors, sending the stock spiraling out of control. Today, we’ll talk about:
- The clinical data;
- what we’re seeing from the stock; and
- what we’ll be watching for with regard to NKTR ahead.
NKTR Announces Clinical Data
As mentioned above, Nektar Therapeutics is having an incredibly rough start to the trading session this morning after the company released early data from a phase 1/2 clinical trial. Interestingly enough, the data was released on Saturday, when the market was closed and investors were least likely to pay attention. Nonetheless, as the week gets started, investors are taking note, and the stock is falling dramatically.
The trial was assessing the company’s NKTR-214 in combination with Opdivo, a drug being marketed by Bristol-Myers Squibb (BMY) for the treatment of cancer. In this particular trial, NKTR is testing safety and efficacy of the combination in patients with stage IV metastatic melanoma, renal cell carcinoma, and urothelial cancers. When the data was released, Analyst Josh Schimmer from Evercore ISI immediately pointed to the fact that the data was underwhelming. Unfortunately, the data showed no real benefit added by NKTR-214. Without an overwhelmingly positive response, investors are losing confidence. It was also interesting that the companies did not separately release data. All in all, concerns are brewing that the efficacy of NKTR-214 isn’t what it was expected to be.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dig into the market is that the news causes moves. In this particular case, the news proved to be overwhelmingly negative. As more and more analysts weigh in with negative opinions surrounding Nektar Therapeutics’ clinical trial results, the declines are only getting larger. Of course, our partners at Trade Ideas were the first to alert us to the movement. Currently (9:03), NKTR is trading at $62.50 per share after a loss of $27.85 per share (30.82%) thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on NKTR. In particular, we’ll continue to follow the story surrounding NKTR-214 to see if there’s something in the data that would suggest that the treatment will be a long-term revenue driver. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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