Piper Sandler has initiated coverage on Nektar Therapeutics Inc NKTR, citing the company’s lead asset rezpegaldesleukin’s (REZPEG) differentiated mechanism of action.
The analyst writes that Alopecia areata (AA) is an inflammatory skin disorder where patients require lifelong use of JAK inhibitors. Thus, REZPEG’s Treg mechanism has the potential to not only restore immune privilege but also provide durable disease control and transform patient quality of life.
In August, Nektar Therapeutics said its former partner, Eli Lilly And Co LLY, had presented “erroneous data” from two Phase 1b studies of Rezpeg.
In April, Nektar Therapeutics announced a strategic plan to reprioritize assets and restructure costs.
Regarding clinical programs, Nektar will prioritize the development of Rezpeg, either in collaboration with current partner Eli Lilly or on its own in the future.
Piper analyst writes, “Thus, by selectively stimulating Tregs, we believe REZPEG is uniquely positioned to restore immune homeostasis and mitigate the pro-inflammatory cascade across diseases…”
“REZPEG is strongly positioned to restore immune privilege and transform SoC,” the analyst adds.
Piper maintains a high probability of success for 36-week Phase 2b REZOLVE-AA n=84 Alopecia areata (AA) patients, with topline data expected in the first half of 2025.
Piper initiates with an Overweight rating and a price target of $7, an upside of over 400%.
Price Action: NKTR stock is up 10.2% at $1.355 at last check Monday.
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