NKTR - Bull Thesis

(Updated 4/26/22)

BULL THESIS

• NKTR overall corporate

  • A leader in the development of cytokine-based therapies

  • Lead asset, NKTR358 immunology/auto-immune (IL-2 T Reg stimulator)

    • Partnered with Lilly,

    • Generous deal for NKT

      • 22% royalty on top-line revenue

    • Impressive Ph2 clinical results in Lupus and atopic dermatitis

  • Current ~$100M enterprise value seems low even with recent death of lead asset, Bempeg

  • Core pegylation technology provides ability to reduce toxicity of cytokines while retaining beneficial activities

  • Ended 2021 with almost $800M in cash and investments

    • Cash runway into 2025 after recent restructure (laid off 70% of work force)

  • No debt on balance sheet as of Q4 2021

• NKTR-358 (Pegylated IL-2 T Regulatory Cell Stimulator)

  • Drives expansion of T regulatory cells

  • Impressive Ph2 data in Lupus and atopic dermatitis

  • Generous deal from partner Lilly

    • Covers 75% dev costs

    • $175M milestones remain

    • 22% revenue royalty

• NKTR received initial $250M payment and eligible for up to $250M in additional development milestones

• NKTR-255 (PEG-conjugated IL-2 based Treg stimulator

  • Drives expansion of NK and T cells and appears to increase effectiveness of CAR-T

    • Pre-clin and early clin suggests drives expansion and persistence of CAR-T cells in vivo

  • Encouraging early activity observed in first patients receiving treatment in MM and DLBCL (combo trials with RITUXAN or CD19/22 CAR T-cells)

FS/MV 12/27/21 (updated 3/24/22) (EJV updated with major corp update 4/25/22)

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