Positive Trial Results for Alopecia Treatment#
Jefferies has reiterated a Buy rating for Nektar Therapeutics (NASDAQ:NKTR) after the company reported encouraging results from its Phase 2 trial for a treatment aimed at alopecia areata, a condition that causes hair loss. The stock is currently trading at $101.87, reflecting a remarkable increase of 789% over the past year.
Key Findings from the Trial#
The latest data revealed that about 28% of patients achieved SALT scores below 20, which measures the severity of hair loss, exceeding Jefferies' expectations of 20-25%. This improvement was noted from the previous 36-week data point. Furthermore, the safety profile of the treatment remained consistent with earlier reports, indicating that it is well-tolerated by patients.
Future Plans and Data Releases#
Nektar plans to hold an end-of-Phase 2 meeting in the second quarter of the year and is expected to release additional data from the trial in the fourth quarter. Approximately 93% of patients completed the 16-week treatment extension, although 28% chose to discontinue treatment, primarily due to personal decisions rather than treatment efficacy.
Analyst Perspectives#
In related news, Nektar also shared extended results from its Phase 2b REZOLVE-AA study, which evaluated its treatment in patients with severe alopecia areata. The results showed a SALT score of 20 or lower in about 28% of participants at the 24µg/kg dose by Week 52, aligning with Oppenheimer’s best-case scenario projections. Oppenheimer maintains an Outperform rating for Nektar with a price target of $140. Meanwhile, Wedbush has initiated coverage with a Neutral rating and a price target of $70, noting that ongoing trials may provide some downside protection for investors.