In a cisplatin-ineligible frontline metastatic urothelial carcinoma population, Nektar Therapeutics reported an overall response rate that was either 48% or 42% depending on the denominator of 23 or 26, H.C. Wainwright analyst Debjit Chattopadhyay tells investors in a research note partially titled "Not Yet Ready to Celebrate the Law of Small Numbers." This implies compression in overall response rate from the 60% initially posted at ASCO 2018 drawn from 10 patients, the analyst points out. Intriguingly, though, ORR was 50% in PD-L1 negative/ low patients, but being driven by a relatively small sample of 10, says Chattopadhyay. The analyst awaits clarity from the full data set on February 15, prior to becoming more sanguine on the opportunity for NKTR-214 in urothelial cancer. Further, the analyst believes the opportunity for NKTR-214 and Opdivo is likely to be "de minimis" in frontline renal cell carcinoma based on the readout from Keynote-426. He keeps a Neutral rating on Nektar shares with a $47 price target.

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.