In the first quarter of 2018, Nektar Therapeutics (NKTR) generated total revenues of $38 million compared with $24.7 million in the first quarter 2017. This increase was mainly attributable to a jump in revenues from royalties and licenses and collaboration revenues. Nektar’s licensing and collaboration revenues rose more than 100% from $6 million in Q1 2017 to $13.7 million in Q1 2018. This increase was primarily due to the recognition of a milestone payment of $10 million received by Nektar in March 2018 resulting from the marketing authorization of Adynovi in the European Union in January 2018.
Its royalty revenues increased from $7.2 million in Q1 2017 to $11 million in Q1 2018. This increase in royalty revenues was due to higher royalties for AstraZeneca’s Movantik and Moventig and Baxalta’s Adynovate. Nektar expects an uptake in royalty revenues for fiscal 2018 as compared with fiscal 2017 due to the continued sales growth of its partnered products and the approval of Adynovi in the European Union in January 2018.
Nektar Therapeutics’ product sales, which mainly consist of fixed price manufacturing and supply agreements with its collaboration partners also witnessed a healthy increase from $4.8 million in Q1 2017 to $6.3 million in Q1 2017. For fiscal 2018, Nektar expects product sales to decline as compared with fiscal 2017 due to the termination of its collaboration agreement with Ophthotech in October 2017.
The non-cash royalty revenue of the company, which is related to the sale of future royalties, increased from $6.7 million in Q1 2017 to $6.9 million in Q1 2018.
In the next part of the series, we’ll take a look at the company’s operating performance.