#7 - Nektar Therapeutics (NASDAQ:NKTR)
Nektar Therapeutics (NASDAQ: NKTR) - The company continues to struggle with its latest cancer drug, NKTR-214. The combination treatment helped the stock soar in early 2018 when Bristol-Myers Squibb agreed to license rights to NKTR-214. However, after reaching that height, investors have become less than enthused about the drug's potential. The response rate with declined for both melanoma patients and kidney cancer patients. Why is this important? If the numbers don’t improve, the stock may not receive FDA approval. What may be even more concerning is that the company withheld objective response rate (ORR) data for up to 69% of dosed patients. One of the primary rules of biotechnology is that a company does not withhold data unless it’s bad. The stock has fallen to around $37 per share from a lofty high of around $111. Until investors get more firm data over a series of reports, Nektar seems like one stock that should be avoided.
About Nektar Therapeutics
Nektar Therapeutics, a biopharmaceutical company, focuses on discovering and developing medicines in the field of immunotherapy in the United States and internationally. The company is developing rezpegaldesleukin, a cytokine Treg stimulant that is in phase 2 clinical trial for the treatment of systemic lupus erythematosus and ulcerative colitis, as well as phase 2b clinical trial to treat atopic dermatitis and psoriasis; and NKTR-255, an IL-15 receptor agonist, which is in phase 1 clinical trial to boost the immune system's natural ability to fight cancer.
Read More - Current Price
- $0.93
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 4 Buy Ratings, 2 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $4.10 (341.7% Upside)
Investing in pharmaceutical stocks is not for the faint of heart. In addition to understanding the technical data that underpins every stock, investors are charged with understanding the science behind the stock. This can be difficult because it’s hard to not want to believe in these stocks. Because beyond the hope they provide for diseases that many families have been affected by such as cancer, Alzheimer’s, and multiple sclerosis, can cause these stocks to attract investor money as they see a growing market for these drugs as the world’s population continues to age.
But it’s important for investors to take the emotion out of these stocks. Because the drugs still have a high failure rate. When they fail, the decline in a company’s stock price can be disastrous. Many of the stocks in this report are down more than 50% from record highs just recorded this year.
These seven pharma stocks may have better days ahead of them, but for now, investors may want to take a pass.
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