Nektar Therapeutics (NASDAQ:NKTR) Q4 2015 Earnings Conference Call - Final Transcript

Mar 01, 2016 • 05:00 pm ET

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Nektar Therapeutics (NASDAQ:NKTR) Q4 2015 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good day ladies and gentlemen, and welcome to the Nektar Therapeutics Fourth Quarter and Year End 2015 Financial Results Conference Call. At this time, all participants are in a listen-only mode. Later we will conduct a question-and-answer session and instructions will be given at that time. [Operator Instructions] As a reminder, this call may be recorded.

I'd now like to introduce your host for today's conference, Jennifer Ruddock, Vice President of Investor Relations. Please go ahead.

Executive
Jennifer Ruddock

Thank you, Cathy. Good afternoon and thank you for everyone joining us today. With us are Howard Robin, our President and CEO; John Nicholson, our Chief Financial Officer; Dr. Ivan Gergel, our Chief Medical Officer; Dr. Steve Doberstein, our Chief Scientific Officer; and Dr. Jonathan Zalevsky, our VP of Biology.

On this call, we expect to make forward-looking statements regarding our business, including potential regulatory approval decisions and commercial launch timings, the timing of future clinical results, clinical development plans, the economic potential of our collaboration partnerships, the therapeutic and market potential of certain drugs and drug candidates, as well as, those of our partners, our financial guidance for 2016, and certain other statements regarding the future of our business.

Because these forward-looking statements relate to the future, they are subject to inherent uncertainties and risks, that are difficult to predict, and many of which are outside of our control. Important risks and uncertainties are set forth in our Form 10-K, which was filed on February 29, 2016, and is available at sec.gov. We undertake no obligation to update any of these forward-looking statements, whether as a result of new information, future developments, or otherwise. A webcast of this call will be available on the IR page of Nektar's website at nektar.com.

And with that, I would now like to hand the call over to Howard. Howard?

Executive
Howard Robin

Thank you, Jennifer. Thanks to everyone for joining us today for our fourth quarter and year end 2015 financial results call. On today's call, we will review our achievements over the past year, discussing upcoming milestones for Nektar, and provide financial guidance for 2016. Ivan will also provide an update on the trials for NKTR-181 and NKTR-214, both of which are proceeding nicely.

As you saw this morning, AstraZeneca announced a European agreement for MOVENTIG with ProStrakan, a subsidiary of Kirin in Japan, which has near term significant economics to Nektar. Nektar is entitled to 40% of the payment that ProStrakan makes to AstraZeneca under their agreement. In 2016, we estimate this will translate to over $40 million to Nektar, which is comprised of 40% of the $70 million upfront payment and 40% of the additional milestones we expect to be paid by ProStrakan to AstraZeneca for selected European country pricing approvals in 2016.

In addition to these 2016 payments, Nektar will also receive 40% of all sales milestones paid to AstraZeneca by ProStrakan and we will receive high-single-digits to low-double-digit royalties on net sales of MOVENTIG in Europe.

Our U.S. royalty rate for MOVANTIK which starts at