NEKTAR THERAPEUTICS Segments Disclosure
Note 14 — Segment Reporting
We operate in one business segment which focuses on applying our expertise to develop novel drug candidates. Our business offerings have similar economics and other characteristics, including the nature of products and manufacturing processes, types of customers, distribution methods and regulatory environment. We are comprehensively managed as one business segment by our .
The CODM assesses the performance of the Company and decides how to allocate resources based upon net loss that is also reported within the Consolidated Statements of Operations. The measure of segment assets that is reviewed by the CODM is reported within the Consolidated Balance Sheet as total assets.
The following is a summary of the significant expense categories and consolidated net loss details provided to the CODM (in thousands):
|
|
Year Ended December 31, |
|
|||||
|
|
2025 |
|
|
2024 |
|
||
Revenue: |
|
$ |
55,232 |
|
|
$ |
98,427 |
|
Operating costs and expenses: |
|
|
|
|
|
|
||
Cost of goods sold |
|
|
— |
|
|
|
30,686 |
|
Clinical development, contract manufacturing and other third party costs |
|
|
|
|
|
|
||
Rezpegaldesleukin (IL-2 receptor agonist/regulatory T cell agent) |
|
|
51,531 |
|
|
|
49,382 |
|
NKTR-255 (IL-15 receptor agonist) |
|
|
6,486 |
|
|
|
15,795 |
|
NKTR-0165 (tumor necrosis factor receptor type II agonist) |
|
|
9,569 |
|
|
|
9,339 |
|
Discovery research and other programs |
|
|
1,833 |
|
|
|
2,334 |
|
Total clinical development, contract manufacturing and other third party costs |
|
|
69,419 |
|
|
|
76,850 |
|
Employee costs (a)(b) |
|
|
46,003 |
|
|
|
40,204 |
|
Facilities costs (a) |
|
|
12,306 |
|
|
|
16,821 |
|
Other operating costs (a)(c) |
|
|
44,727 |
|
|
|
42,047 |
|
Other segment expenses |
|
|
22,879 |
|
|
|
37,407 |
|
Gain on sale of the Huntsville manufacturing facility |
|
|
— |
|
|
|
(40,390 |
) |
Total operating costs and expenses |
|
|
195,334 |
|
|
|
203,625 |
|
Loss from operations |
|
|
(140,102 |
) |
|
|
(105,198 |
) |
Non-operating income (expense): |
|
|
|
|
|
|
||
Non-cash interest expense on liabilities related to sales of future royalties |
|
|
(26,184 |
) |
|
|
(28,112 |
) |
Interest income |
|
|
10,438 |
|
|
|
14,500 |
|
Other income (expense), net |
|
|
361 |
|
|
|
(390 |
) |
Total non-operating income (expense), net |
|
|
(15,385 |
) |
|
|
(14,002 |
) |
Loss before benefit for income taxes and equity method investment |
|
|
(155,487 |
) |
|
|
(119,200 |
) |
Benefit for income taxes |
|
|
(138 |
) |
|
|
(239 |
) |
Loss before equity method investment |
|
|
(155,349 |
) |
|
|
(118,961 |
) |
Loss from equity method investment |
|
|
(8,727 |
) |
|
|
— |
|
Net loss |
|
$ |
(164,076 |
) |
|
$ |
(118,961 |
) |
Other segment expense items included within net loss include the following (in thousands):
|
|
Year Ended December 31, |
|
|||||
|
|
2025 |
|
|
2024 |
|
||
Impairment of right-of-use assets and property, plant and equipment |
|
$ |
4,441 |
|
|
$ |
8,329 |
|
Contract termination costs |
|
|
4,890 |
|
|
|
7,341 |
|
Stock-based compensation (a) |
|
|
12,649 |
|
|
|
19,666 |
|
Depreciation and amortization expense (a) |
|
|
899 |
|
|
|
2,071 |
|
Total other segment expenses |
|
$ |
22,879 |
|
|
$ |
37,407 |
|
Our revenue has been derived primarily from customers in the pharmaceutical and biotechnology industries. Revenue from Baxalta (a subsidiary of Takeda Pharmaceutical Company Limited), AstraZeneca, and UCB represented 45%, 37%, and 14% of our revenue, respectively, for the year ended December 31, 2025. Revenue from UCB, Baxalta, AstraZeneca, Pfizer Inc., and Roche represented 39%, 18%, 17%, 12% and 10% of our revenue, respectively, for the year ended December 31, 2024.
Revenue by geographic area is based on the headquarters or shipping locations of our partners. The following table sets forth revenue by geographic area (in thousands):
|
|
Year Ended December 31, |
|
|||||
|
|
2025 |
|
|
2024 |
|
||
United States |
|
$ |
— |
|
|
$ |
1,375 |
|
Rest of World |
|
|
55,232 |
|
|
|
97,052 |
|
Total revenue |
|
$ |
55,232 |
|
|
$ |
98,427 |
|
At December 31, 2025 and 2024, all of our property, plant and equipment was located in the United States.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 13, 2026 | Showing above |
| 2024 | Mar 14, 2025 | |
| 2023 | Mar 5, 2024 | |
| 2022 | Feb 28, 2023 | |
| 2021 | Mar 1, 2022 | |
| 2020 | Feb 26, 2021 | |
| 2019 | Feb 28, 2020 | |
| 2018 | Mar 1, 2019 | |
| 2017 | Mar 1, 2018 | |
| 2016 | Mar 1, 2017 | |
| 2015 | Feb 29, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.