The failure of Incyte (INCY) and Merck's (MRK) Phase 3 study negatively impacted trading in Nektar Therapeutics (NKTR) shares on Friday, H.C. Wainwright analyst Debjit Chattopadhyay tells investors in a research note titled "Collateral Damage Not Surprising; Expecting ASCO-18 to Validate the Master T Cell Regulator Hypothesis." At this year's American Society of Clinical Oncology meeting, the analyst expects Nektar and partner Bristol-Myers Squibb (BMY) to unveil data from at least 40 advanced melanoma patients "supported by in-depth biomarker characterization to comprehensively ascertain the rationale of combining NKTR-214 with Opdivo." The rationale for combining NKTR-214 with Opdivo is "more robust" than epacadostat plus Keytruda, the analyst contends. Further, he believes data generated by the NKTR-214 plus Opdivo combination is "unambiguous." Chattopadhyay reiterates a Buy rating on Nektar shares with a $125 price target.

Notable companies reporting before tomorrow's open, with earnings consensus, include Merck (MRK), consensus $1.87... Caterpillar (CAT), consensus $5.14... Comcast (CMSCA), consensus 99c... Honeywell (HON), consensus $2.17... Bristol-Myers (BMY), consensus ($4.44)... Altria (MO), consensus $1.15... Keurig Dr. Pepper (KDP), consensus 35c... GE Vernova (GEV), consensus (37c)... Royal Caribbean (RCL), consensus $1.33... Tractor Supply (TSCO), consensus $1.72... Mobileye (MBLY), consensus (6c)... Textron (TXT), consensus $1.23... LabCorp (LH), consensus $3.48... Southwest Airlines (LUV), consensus (34c)... American Airlines (AAL), consensus (29c)... Harley-Davidson (HOG), consensus $1.51.

Biolojic Design announced that Nektar exercised its license option to develop a program resulting from the companies' research collaboration initiated in 2021. The research collaboration was established to design and test agonistic antibodies targeting tumor necrosis factor receptor type II, a novel, biologically-validated disease target implicated in a wide range of autoimmune diseases that has been difficult to drug with conventional medicines. The antibody program selected for development is designed to modulate the TNFR2 pathway in order to agonize - or activate - T regulatory cells and other anti-inflammatory cell populations, making this a promising approach to stimulating the immune system in ulcerative colitis, multiple sclerosis, vitiligo, and other autoimmune disease states. Under the 2021 research agreement, Nektar has tested antibodies computationally designed by Biolojic Design to precisely agonize the TNFR2 receptor. Following successful preclinical in vitro and in vivo studies, Nektar decided to exercise the license option and has been advancing the program through IND enabling studies since late December, 2023. If the NKTR-0165 candidate proceeds through clinical development, Biolojic Design is entitled to development milestones and sales royalties.