Nektar Therapeutics (NKTR, Financial) filed Quarterly Report for the period ended 2009-03-31.
Nektar Therapeutics formerly Inhale Therapeutic Systems Inc. enables the development of high-value pharmaceutical products based on its leading drug delivery technologies. Nektar's expanded technology and development expertise allows it to develop and offer to partners new product opportunities solve more development challenges and realize the full potential of their therapeutics from new molecular entities to life-cycle management products. Nektar Therapeutics has a market cap of $491.2 million; its shares were traded at around $5.31 with and P/S ratio of 5.5. Nektar Therapeutics had an annual average earning growth of 5.5% over the past 10 years.
The decrease in Research and development expense for the three months ended March 31, 2009 compared to the three months ended March 31, 2008, is primarily attributable to the completion of the sale of certain assets related to our pulmonary business, associated property, and intellectual property to Novartis on December 31, 2008 (Novartis Pulmonary Asset Sale) and the workforce reduction executed in February 2008. As part of the Novartis Pulmonary Asset Sale, we transferred approximately 140 of our personnel dedicated to our pulmonary operations and our San Carlos research and manufacturing facility to Novartis; additionally, we ceased research activities on the TIP program, the Cipro Inhale program and certain other proprietary pulmonary development programs. For the three months ended March 31, 2009 compared to the three months ended March 31, 2008, personnel costs decreased by approximately $9.6 million, comprised of $6.6 million of salaries and benefits and $3.0 million of severance costs, and facilities costs decreased by approximately $3.7 million.
We had cash, cash equivalents and short-term investments in marketable securities of $325.3 million and indebtedness of $242.4 million, including $215.0 million of 3.25% convertible subordinated notes, $21.3 million in capital lease obligations, and $6.1 million in other liabilities as of March 31, 2009.
Cash flows used in operating activities for the three months ended March 31, 2009 totaled $42.4 million and includes $4.9 million for employee bonus payments related to services performed in 2008, $3.5 million for our semi-annual interest payment on our convertible subordinated notes, $2.7 million for severance payments for employees terminated in December 2008, and $31.7 million of other net operating cash uses. Because of the nature and timing of certain cash receipts and payments, net cash utilization is not expected to be ratable over the four quarters of the year.
For the three months ended March 31, 2008, cash used in operations includes payments to Bespak and Tech Group of $32.4 million for amounts due under our termination agreements with those companies, all of which was recorded as an expense in 2007, $2.6 million to maintain Exubera inhaler manufacturing capacity at Tech Groups facility, and $3.9 million for severance, employee benefits, and outplacement services in connection with our workforce reduction plans.
We purchased $5.1 million and $5.3 million of property and equipment in the three-months ended March 31, 2009 and 2008, respectively. For the three months ended March 31, 2009 we paid $4.8 million of previously expensed transaction costs related to the Novartis Pulmonary Asset Sale, which was completed on December 31, 2008.
Read the The complete ReportNKTR is in the portfolios of PRIMECAP Management.
Nektar Therapeutics formerly Inhale Therapeutic Systems Inc. enables the development of high-value pharmaceutical products based on its leading drug delivery technologies. Nektar's expanded technology and development expertise allows it to develop and offer to partners new product opportunities solve more development challenges and realize the full potential of their therapeutics from new molecular entities to life-cycle management products. Nektar Therapeutics has a market cap of $491.2 million; its shares were traded at around $5.31 with and P/S ratio of 5.5. Nektar Therapeutics had an annual average earning growth of 5.5% over the past 10 years.
Highlight of Business Operations:
At March 31, 2009, we had approximately $325.3 million in cash, cash equivalents, and short-term investments and $242.4 million in indebtedness. We may from time to time purchase or retire additional convertible subordinated notes through cash purchase or exchanges for other securities of the Company in open market or privately negotiated transactions, depending on, among other factors, our levels of available cash and the price at which such convertible notes are available for purchase. We will evaluate such transactions, if any, in light of then-existing market conditions. These transactions, individually or in the aggregate, may be material to our business.The decrease in Research and development expense for the three months ended March 31, 2009 compared to the three months ended March 31, 2008, is primarily attributable to the completion of the sale of certain assets related to our pulmonary business, associated property, and intellectual property to Novartis on December 31, 2008 (Novartis Pulmonary Asset Sale) and the workforce reduction executed in February 2008. As part of the Novartis Pulmonary Asset Sale, we transferred approximately 140 of our personnel dedicated to our pulmonary operations and our San Carlos research and manufacturing facility to Novartis; additionally, we ceased research activities on the TIP program, the Cipro Inhale program and certain other proprietary pulmonary development programs. For the three months ended March 31, 2009 compared to the three months ended March 31, 2008, personnel costs decreased by approximately $9.6 million, comprised of $6.6 million of salaries and benefits and $3.0 million of severance costs, and facilities costs decreased by approximately $3.7 million.
We had cash, cash equivalents and short-term investments in marketable securities of $325.3 million and indebtedness of $242.4 million, including $215.0 million of 3.25% convertible subordinated notes, $21.3 million in capital lease obligations, and $6.1 million in other liabilities as of March 31, 2009.
Cash flows used in operating activities for the three months ended March 31, 2009 totaled $42.4 million and includes $4.9 million for employee bonus payments related to services performed in 2008, $3.5 million for our semi-annual interest payment on our convertible subordinated notes, $2.7 million for severance payments for employees terminated in December 2008, and $31.7 million of other net operating cash uses. Because of the nature and timing of certain cash receipts and payments, net cash utilization is not expected to be ratable over the four quarters of the year.
For the three months ended March 31, 2008, cash used in operations includes payments to Bespak and Tech Group of $32.4 million for amounts due under our termination agreements with those companies, all of which was recorded as an expense in 2007, $2.6 million to maintain Exubera inhaler manufacturing capacity at Tech Groups facility, and $3.9 million for severance, employee benefits, and outplacement services in connection with our workforce reduction plans.
We purchased $5.1 million and $5.3 million of property and equipment in the three-months ended March 31, 2009 and 2008, respectively. For the three months ended March 31, 2009 we paid $4.8 million of previously expensed transaction costs related to the Novartis Pulmonary Asset Sale, which was completed on December 31, 2008.
Read the The complete ReportNKTR is in the portfolios of PRIMECAP Management.
