Diversified revenue streams
Nektar Therapeutics’ (NKTR) total revenue includes product sales, royalty revenue, non-cash revenue related to the sale of future royalties, and license and collaboration revenue. Nektar had product sales of $4.4 million in 3Q17, compared with $144.7 million in 3Q16. Between 3Q16 and 3Q17, its royalty revenue rose from $5.5 million to $9.3 million, and its license and collaboration revenue rose from $8.3 million to $131.1 million. As a result, Nektar’s total revenue rose from $36.3 million to $152.9 million. Nektar Therapeutics is expected to report revenue of $252 million in fiscal 2017.
In comparison, the company’s total operating expenses rose at a slower pace, from $69.2 million in 3Q16 to $83.4 million in 3Q17. Its operating expense components tell a different story between 3Q16 and 3Q17. Its cost of goods sold fell from $7 million to $5.6 million, while its research and development expenses rose from $51.9 million to $65.7 million. General and administrative expenses rose from $10.2 million to $12 million.
Improved bottom line
The company’s jump in revenue improved its bottom line significantly. Between 3Q16 and 3Q17, Nektar’s net income rose from -$43.2 million to $60.8 million, its earnings per share rose from -$0.32 to $0.39, and its outstanding shares rose from ~137 million to ~162 million. Nektar Therapeutics makes up ~1.5% of the iShares NASDAQ Biotechnology ETF (IBB).