Q1 2024 Nektar Therapeutics Earnings Call

Vivian Wu: of our collaboration agreement. The expectations following are corporate restructuring and reorganization, financial guidance, and certain other statements regarding the future of our business. Because forelooking statements relate to the future, they're subject to uncertainties and risks that are difficult to predict, many of which are outside of our control. Our actual results may differ materially from those expressed. Important risks and uncertainties are set forth in our Form 10-Q that was filed on November 8, 2023, which is available at SBC.gov.

The agreement.

Vivian Wu: Expectations, following our corporate restructuring and reorganization financial guidance and certain other statements regarding the future of our business.

Vivian Wu: Because forward looking statements relate to the future. They are subject to uncertainties and risks that are difficult to predict many of which are outside of our control.

Vivian Wu: <unk> results may differ materially from these statements.

Vivian Wu: Important risks and uncertainties are set forth in our Form 10-Q that was filed on November eight.

Vivian Wu: 'twenty, three which is available at SEC Gov.

Vivian Wu: We undertake no obligation to update any of our link statements, whether as a result of new information, future developments, or otherwise. The webcast of this call will be available on the IR page of Nektar's website at nektar.com. With that said, I would like to hand the call over to our President and CEO, Howard.

Vivian Wu: We undertake no obligation to update any forward looking statements, whether as a result of new information future developments or otherwise a webcast of this call will be available the IR page of <unk> website at <unk> com.

Vivian Wu: With that said I would like to hand, the call over to our president and CEO Howard.

Howard: Ah Robin Howard.

Howard W. Robin: Thank you, Vivian, and thank you for all joining us today. 2023 was a pivotal year for Nektar. We refocused the company's development pipeline on immunology and inflammation, with our primary near-term goal to advance Respeg to meaningful data catalysts in the first half of 2025. ResPeg is poised to be highly disruptive in the biologic treatment landscape for atopic dermatitis by offering a novel, ResPeg is designed to both dampen the inflammatory response and simultaneously restore immune balance by directly expanding functional Treg cells and engaging multiple immunoregulatory pathways in patients with ectopic dermatitis and other autoimmune disorders.

Howard: Thank you Vivian.

Speaker Change: Joining us today.

Howard W. Robin: 2023 was a pivotal year for nectar.

Howard W. Robin: We refocused the company's development pipeline on immunology and inflammation.

Howard W. Robin: With our primary near term goal to advance <unk> to meaningful data catalysts in the first half of 2025.

Howard W. Robin: <unk> is poised to be highly disruptive and the biologic treatment landscape for atopic dermatitis by offering a novel.

Howard W. Robin: Domestic mechanism.

Howard W. Robin: <unk> is designed to both GAAP and the inflammatory response and simultaneously restore immune balance by directly expanding functional T reg cells and engaging multiple immuno regulatory pathways in patients with atopic dermatitis and other autoimmune disorders.

Howard W. Robin: Through its unique mechanism, Respec also has the potential to provide patients with superior efficacy as well as more favorable frequency of dosing. There are over 30 million people in the U.S. alone battling this chronic skin condition, and it can greatly impact quality of life and mental health for these patients. We made significant advancements in 2023 with respect to our ResPeg program. Most notably, we regained the full rights to ResPeg from Eli Lilly and now own the program 100% with no encumbrance.

Howard W. Robin: Tourist unique mechanism <unk> also has the potential to provide patients with superior efficacy as well as more favorable in frequent dosing.

Howard W. Robin: There are over 30 million people in the U S alone.

Howard W. Robin: This chronic skin condition and it can greatly impact quality of life and mental health for these patients.

Howard W. Robin: We made significant advance advancements in 2023 with respect to our <unk> program, most notably we regain the full rights to <unk> from Eli Lilly and now on the program, 100% with no encumbrances.

Howard W. Robin: We moved to quickly design a phase 2B study in ectopic dermatitis based on the promising results from the phase 1B placebo-controlled randomized study at Respeg, which showed an 83% drop in eczema skin scores after just 12 weeks of treatment. Our phase 2B global study and this indication was launched in October 23, and enrollment is on track for data readout in the first half of 25. In late 2023, we also began work designing a Phase IIb study in alopecia areata, another area of high unmet need.

Howard W. Robin: We moved to quickly design the phase <unk> study in atopic dermatitis based on the promising results from the phase <unk> placebo controlled randomized study of <unk>, which showed an 83% drop in xoma's skin scores. After just 12 weeks of treatment.

Howard W. Robin: Our phase <unk> Global study in this indication was launched in October of 'twenty Threes and enrollment is on track for data readout in the first half of 'twenty five.

Howard W. Robin: In late 2023, we also began work designing a phase <unk> study in our <unk> area another area of high unmet need.

Howard W. Robin: This study is starting this month. There are approximately 7 million patients in the United States and 160 million people worldwide who have alopecia areata. Jack inhibitors are the primary treatment option for patients with alopecia, but they have a significant rebound effect with treatment cessation and several black box warnings. Based on the data we've generated to date on ResVag in the skin-related autoimmune condition of atopic dermatitis, psoriasis, and in patients with cutaneous manifestations of lupus,

Howard W. Robin: The study is starting this month.

Howard W. Robin: There are approximately 7 million patients in the United States and 160 million people worldwide, who have alopecia Areata Jack.

Howard W. Robin: JAK inhibitors are the primary treatment option for patients with alopecia, but have a significant rebound effect with treatment cessation and several black box warnings.

Howard W. Robin: Based on the data we've generated to date on res peg in the skin related autoimmune condition of atopic dermatitis psoriasis and in patients with cutaneous manifestations of lupus.

Howard W. Robin: We believe Respeg has strong scientific rationale in the setting of alopecia and could have the potential to be a highly differentiated treatment option with a similar remittive effect for this unserved patient population. As I stated earlier, we look forward to the Phase 2b data for our Topic Dermatitis Study and for our Alopecia Study in the first half of 2025. These will be highly meaningful data collections.

Howard W. Robin: We believe <unk> has strong scientific rationale and the setting of alopecia and could have the potential to be a highly differentiated treatment option with a similar remit of effect for this unserved patient population.

Howard W. Robin: As I stated earlier, we look forward to the phase <unk> data for our topic dermatitis study and for our Alopecia study in the first half of 2025.

Howard W. Robin: These will be highly meaningful data catalysts for next year.

Howard W. Robin: In addition to RESPEG, we have another important immunology program that we're moving toward the clinic. This is a first-in-class differentiated mechanism in immunology, a TNFR2 agonist antibody, Nektar 165. TNF-R2 has been shown to potentiate the suppressive effects and overall functional properties of Tregs, and the program is built on what we've learned through our deep experience with Respeg and the Treg field and represents a promising mechanism for treating autoimmune diseases, including multiple sclerosis and ulcerative colitis.

Howard W. Robin: In addition to resume we are another important immunology program that we're moving towards the clinic. This is a first in class differentiated mechanism and immunology of TNF are two agonist antibody nectar $1 65.

Howard W. Robin: TNF or two has been shown to potentiate, the suppressive effects and overall functional properties of T. Regs and the program is built on what we've learned through our deep experience with <unk> and the T. Reg field and represents a promising mechanism for treatment of autoimmune diseases, including multiple sclerosis, and ulcerative colitis.

Howard W. Robin: We're currently conducting IND-enabling studies with the goal of targeting an IND submission in the first half of next year. In line with our objectives to advance our immunology pipeline, today we announced a $30 million financing that further bolsters Nektar's financial position as we head into transformative data catalyst. Importantly, we're pleased to bring on a new high quality long-term investor, TCG Crossover, who clearly shares our belief in the potential of risk.

Howard W. Robin: We're currently conducting IND, enabling studies with the goal of targeting an IND submission in the first half of next year.

Howard W. Robin: In line with our objectives to advance our immunology pipeline today, we announced a $30 million financing that further bolsters <unk> financial position as we head into transformative data catalysts importantly, we're pleased to bring on a new high quality long term investor TCG crossover who.

Howard W. Robin: Clearly shares our belief in the potential of <unk> at.

Howard W. Robin: At a price of $1.20 per share, the transaction represents a premium of over 80% to Nektar's 30-day V1. This puts us in a strong financial position and extends our cash runway from our previous guidance, which was the middle of 2026, to now well into the third quarter of 2026. And with that, I'll hand the call over to Jay-Z for an R&D discussion. Jay-Z?

Howard W. Robin: At a price of $1 20 per share the transaction represents a premium of over 80% to <unk> 30 <unk>.

Jay-Z: This puts us in a strong financial position and extends our cash runway from our previous guidance, which was the middle of 2026 to now well into the third quarter of 2026.

Jay-Z: And with that I'll hand, the call over to Jay Z Foreign R&D discussion Kinsey.

Jay-Z: Thank you, Howard. Let's begin today with ResPeg, which is the most advanced IL-2-based Treg mechanism in the field. Across the ResPec studies that have been conducted to date, we have observed a consistent and highly predictable clinical pharmacology profile with respect to target engagement, as well as the peak and duration of Treg mobilization. It has demonstrated a well-tolerated safety profile and clear clinical efficacy in atopic dermatitis, as well as psoriasis, and in patients with cutaneous manifestations of lupus

Howard W. Robin: Yeah.

Jay-Z: Thank you Howard.

Jay-Z: Let's begin today with Red Tag, which is the most advanced Iot base T Reg mechanism in the field.

Jay-Z: Across the rest peg studies that have been conducted to date.

Jay-Z: We have observed a consistent and highly predictable clinical pharmacology profile with respect to target engagement as well as the peak and duration of T. Reg mobilization.

Jay-Z: It has demonstrated a well tolerated safety profile and cleared clinical efficacy in atopic dermatitis, and also psoriasis and in patients with cutaneous manifestations of lupus.

Jay-Z: Our deep experience with ResPeg to date, across the totality of this clinical program, gives us conviction in our ongoing Phase IIb studies in atopic dermatitis and alopecia areata. Specifically, in atopic dermatitis, there are three important issues that patients with this disease continue to face. First, there is a need for great efficacy.

Jay-Z: Our deep experience with Red pegged to date across the totality of the clinical program gives us conviction in our ongoing phase <unk> studies in atopic dermatitis and alopecia Areata.

Jay-Z: So specifically in atopic dermatitis, there are three important issues that patients with this disease continue to face.

Jay-Z: First there is a need for a great efficacy.

Jay-Z: Specifically, a deeper magnitude of response and a rapid onset of treatment. Second, patients lack durable responses and therapy-free remission. Once current therapies are discontinued, patients rebound rapidly. And third, treatments with favorable safety profiles are lacking.

Jay-Z: Specifically, a deeper magnitude of response and rapid onset of treatment.

Jay-Z: Second patients like durable responses and therapy free remission.

Jay-Z: <unk> current therapies or discontinued patients rebound rapidly.

Jay-Z: And third treatment with a favorable safety profile they are lacking.

Jay-Z: This is especially important given the chronic nature of the disease and the need for continuous dosing. We believe there are major opportunities in this disease state that the differentiated profile of RASPEC could potentially address. Diving into our Phase 1b data in atopic dermatitis.

Jay-Z: This is especially important given the chronic nature of the disease and the need for continuous dosing.

Jay-Z: We believe that there are major opportunities in this disease state that the differentiated profile of <unk>.

Jay-Z: The address.

Jay-Z: Diving into our phase <unk> data in atopic dermatitis through.

Jay-Z: Through the 12-week induction period, RAS-PAG demonstrated dose-dependent efficacy across both physician-assessed and patient-reported efficacy measures, reaching statistical significance across many of these measures. At the highest dose level, Ras-Peg demonstrated a very rapid onset of response, with over 40% of patients achieving EC75 by week three after only two doses of Ras-Peg. This rapid onset of action rivals that of JAK inhibitors, which have outperformed PILIMAT at this parameter. At the end of the induction period of 12 weeks, we observed a profound magnitude of effort.

Jay-Z: Through the 12 week induction period.

Jay-Z: <unk> demonstrated dose dependent efficacy across both physician and patient reported efficacy measurements, reaching.

Jay-Z: Reaching statistical significant across many of these measures.

Jay-Z: At the highest dose level <unk> demonstrated a very rapid onset of response with over 40% of patients achieving <unk> 75 by week free after only two doses of breath back.

Jay-Z: This rapid onset of action rivals that of JAK inhibitors, which have outperformed pillar matter. This parameter.

Jay-Z: At the end of the induction period of 12 weeks, we observed a profound magnitude of efficacy.

Jay-Z: An 83% reduction in percent change from baseline EASY score with the highest dose tested. This is the largest magnitude of change that we've seen for a biologic and outside of one. Importantly, we are encouraged by the extended durability seen for the retina.

Jay-Z: And 83% reduction in the percent change from baseline easy score with the highest dose tested.

Jay-Z: This is the largest magnitude of change that we've seen for a biologic and outside of <unk> JAK inhibitor.

Jay-Z: Importantly, we are encouraged by the extended durability scene for resume long after the completion of the 12 week induction period, many patients maintain durable disease control for an additional 36 weeks after the end of dosing.

Jay-Z: Long after the completion of the 12-week induction period, many patients maintain durable disease control for an additional 36 weeks after the end of dosing. This type of extended disease control after the end of dosing is not observed for tapilumab or for JAKI. Durability of the EZ-75 response was observed, with approximately 70% of EZ-75 responders maintaining that response for 36 weeks after the end of the 12-week induction period.

Jay-Z: And this type of extended disease control. After the end of dosing is not observed for <unk> or for a JAK inhibitor.

Jay-Z: Durability of the EZ 75 response was observed with approximately 70% <unk> 75 responders maintaining that responds for 36 weeks. After the end of the 12 week induction period.

Jay-Z: This is a very exciting result and suggests that Red Peg has the potential to be the first remittive therapy for atopic dermatitis. For both patient-reported outcomes and physician-assessed endpoints, we observed the same trends, a rapid onset of effect, dose dependence, and long durability of control. Additionally, Respeg was well-tolerated, and treatment with Respeg did not induce anti-drug antibodies in patients, which has been reported with some examples of the IL-2 mutine class. These promising data have us and KOLs very enthusiastic about the potential for long-lasting responses and infrequent maintenance dosing with ResPak in the setting of atopic dermatitis.

Jay-Z: This is a very exciting result, and suggests that <unk> has the potential to be the first rebid of therapy for atopic dermatitis.

Jay-Z: For both patient reported outcomes and physician assessed endpoints, we observed the same trend rapid onset of effect dose dependence and long durability of control.

Jay-Z: Additionally, <unk> was well tolerated and treatment with <unk> did not induce anti drug antibodies in patients, which has been reported that some examples of the IL two new teen class.

Jay-Z: These promising data have us and kols very enthusiastic about the potential for long lasting responses that infrequent maintenance dosing with <unk> in the setting of atopic dermatitis.

Jay-Z: In October 2023, we initiated the Phase 2B study of RASPEG in biologic naive atopic dermatitis patients, and enrollment is well underway. Our goal is to enroll roughly 400 patients with three different regimens of Respeg versus placebo, evaluated over a 16-week induction period. After the induction period, patients that meet a threshold to advance from induction to maintenance will be re-randomized into one of two maintenance regimens, at different dosages at either once a month or once every three months dosing, and that schedule will continue for another 28 weeks.

Jay-Z: In October 2023, we initiated the phase <unk> study of <unk> in biologic naive atopic dermatitis patients and enrollment is well underway.

Jay-Z: Our goal is to enroll roughly 400 patients with three different regimens of <unk> versus placebo.

Jay-Z: <unk> over a 16 week induction period.

Jay-Z: After the induction period patients that meet the threshold to advance from induction to maintenance will be re randomized into one of two maintenance regimen at different dosages at either once a month or once every three month dosing and that schedule will continue for another 28 weeks.

Jay-Z: Our enrollment for this study is on track, and we expect data in the first half of 2025. Moving to alopecia areata, we believe RASPAG has a strong scientific rationale in this indication. Alopecia areata is also a disease of the skin where your immune system starts to attack the hair follicles, thereby weakening the ability of stem cells to grow hair. With prolonged immune attack, this eventually causes the hair follicle to release the hair altogether, leading to patchy hair loss and, as the disease progresses, baldness.

Jay-Z: Our enrollment for this study is on track and we expect data in the first half of 2025.

Jay-Z: Moving to alopecia Areata, we believe ratbag has strong scientific rationale in this indication.

Jay-Z: Alopecia area is also at diseases of the skin, where your immune system starts to attack the hair follicles, thereby a weakening the ability of stem cells to grow hair.

Jay-Z: With prolonged immune attack. This eventually causes the hair follicle to release their altogether.

Jay-Z: Adding to Apache hair loss and as the disease progresses to boneless.

Jay-Z: Biologically speaking, REDPEG, through its central pathway of Treg rescue, is uniquely poised to address the diversity of immunopathology, providing broad potential for targeting multiple dermal diseases, including alopecia. For example, in alopecia, there are almost no immune cells in normal hair follicles, meaning the hair follicle is an immune-privileged tissue.

Jay-Z: Biologically speaking red bag through its central pathway to a T. Reg rescue is.

Jay-Z: Is uniquely poised to address the diversity of immuno oncology, providing broad potential for targeting multiple dermal diseases, including alopecia.

Jay-Z: For example in alopecia, there are almost no immune cells and normal hair follicles, meaning the hair follicle is an immune privileged tissue.

Jay-Z: Tregs are very important in maintaining that immune privilege, and people with alopecia areata develop a breakdown of that immune privilege state. We think the Treg mechanism of RasPeg can restore immune privilege and could provide durable disease control, which we believe would be game-changing in this indication. JAK inhibitors are the only agents approved in alopecia, and they do not provide disease durability after a patient discontinues treatment. With JAK inhibitors, it can take a patient anywhere from 9 to 18 months to grow hair. And once a patient stops taking a JAK inhibitor, which may happen for a variety of reasons, including toxicity, their hair falls out again rapidly.

Jay-Z: T regs are very important in maintaining that immune privilege and people with alopecia area to develop a breakdown of that immune privilege state.

Jay-Z: We think the T. Reg mechanism of <unk> can restore immune privilege and could provide durable disease control, which we believe would be game changing in this indication.

Jay-Z: [noise] JAK inhibitors are the only agents approved in alopecia and they do not provide disease durability after a patient discontinued treatment.

Jay-Z: With JAK inhibitors, it could take a patients anywhere from nine to 18 months to grow hair.

Jay-Z: And once a patient stops taking a JAK inhibitor, which may happen for a variety of reasons, including toxicity their hair falls out again rapidly.

Jay-Z: There is a high unmet need in this patient population for tolerable treatment options that provide durable responses, and we believe that restoration of immune privilege is key to obtaining durable responses. For these reasons, we believe there is an opportunity for Red Peg to become a novel biologic therapy in alopecia areata. We are initiating a Phase 2B study of RASPEG and alopecia. The Phase IIb study plans to recruit roughly 80 patients with severe to very severe alopecia who will be randomized to ResPeg or placebo. Patients will be treated for a period of 36 weeks and observed up to 60 weeks in total.

Jay-Z: There is a high unmet need in this patient population for tolerable treatment options that provide durable responses.

Jay-Z: And we believe that restoration of immune privilege, it's key to obtain durability.

Jay-Z: These reasons, we believe there is an opportunity for <unk> to become a novel biologic therapy in alopecia Areata.

Jay-Z: We are initiating a phase <unk> study of <unk> in alopecia this month.

Jay-Z: The phase <unk> study to recruit roughly 80 patients with severe to very severe alopecia, who will be randomized to <unk> or placebo.

Jay-Z: Patients will be treated for a period of 36 weeks and observed up to 60 weeks in total.

Jay-Z: Our primary endpoint for this study is mean percent improvement in salt, or the severity of the alopecia tool, at week 36, which is the validated outcome measure used for regulatory approval. We will also be looking at a number of other secondary endpoints, including the proportion of patients who saw a reduction. Now turning to Nektar 0165, our TNFR2 agonist animal. TNFR2 is highly expressed on Tregs, myeloid suppressor cells, regulatory B cells, neuronal cells, and others.

Jay-Z: Our primary endpoint for this study is the mean percent improvement install or the severity of alopecia tool at week 36, which is the validated outcome measure used for regulatory approval.

Jay-Z: We will also be looking at a number of other secondary endpoints, including proportion of patients who saw a reduction itself.

Jay-Z: Now turning to Nextera <unk> six five.

Jay-Z: <unk> <unk> two agonist antibody.

Jay-Z: [noise] TNF are too is highly expressed on T. Reg myeloid suppressor cells regulatory b cells neuronal cells than others and TNF are two agonism has been shown to potentiate, the depressive effect and overall functional properties of T regs and these other suppressive cell population.

Jay-Z: And TNFR2 agonism has been shown to potentiate the suppressive effect in overall functional properties of Tregs and these other suppressive cell populations. If TNFR2 is absent, it is associated with autoimmunity and other genetic conditions that resemble FOXP3 loss of function. In contrast, its presence has been associated with immunoregulatory function and protective effects for multiple cell populations and tissues in the body.

Jay-Z: If TNF or two is absent it is associated with autoimmune and other genetic conditions that resemble Fox P. Three loss of function.

Jay-Z: In contrast, its presence has been associated with immuno regulatory function and protective effects for multiple cell populations in tissues in the body.

Jay-Z: This TNF-R2 agonist program in our pipeline is built upon many years of TREG experience gained from residents. For example, we know that central Tregs, such as thymic, require a substantial JAK-STAT signal that is physiologically provided by the IL-2 receptor pathway, and this is a central theme in the mechanism of action of RAS-PEQ. In contrast, Tregs that leave the central compartment and infiltrate the distal organs and tissues are less dependent on the JAK-STAT pathway and instead shift their reliance onto NF-kappa-B pathway engagement for their maintenance of suppressive function.

Jay-Z: This TNF are two agonist program and our pipeline is built upon many years of T. Reg experience gained from raspberries for.

Jay-Z: For example, we know that central T regs, such as Diamond T regs require a substantial JAK stat signal that it's physiologically provided by the IL two receptor pathway and this is a central theme in the mechanism of action of <unk>.

Jay-Z: In contrast, T regs that lead the central compartment and infiltrate the distal organs and tissues.

Jay-Z: There are less dependent on the JAK stat pathway and instead shipped their reliance onto Nf Kappa b pathway engagement for their maintenance of suppressive function.

Jay-Z: TNF-R2 is the most abundant TNF superfamily member expressed on Tregs and the key driver of NF-kappa V signaling in those cells. And consequently, a bona fide TNFR2 agonist would be an incredibly exciting addition to our pipeline. Examples of indications that could be addressed by TNF-R2 agonism include multiple sclerosis, mucosal immunology conditions such as ulcerative colitis of the GI or other oral mucosal diseases, and even dermal autoimmune diseases like vitiligo. We have identified several lead TNFR2 antibody programs from an artificial intelligence-based antibody discovery campaign with our partner, Biologic Design.

Jay-Z: TNF or two is the most abundant TNF superfamily member expressed on T regs and the key driver of Nf Kappa B signaling in those top.

Jay-Z: Consequently, a bonafide TNF are two agonist with being an incredibly exciting addition to our pipeline.

Jay-Z: Samples of indications that could be addressed by TNF are two agonism include multiple sclerosis, mucosal immunology conditions, such as I'll start of colitis of the Gi or other oral Newcastle diseases, and even dermal autoimmune diseases like vitiligo.

Jay-Z: We have identified several leading TNF are two antibody programs from an artificial intelligence based antibody discovery campaign with our partner biologic design.

Jay-Z: The lead antibody is called Nektar-0165, and it has highly desirable properties, including exquisite TNFR2 selectivity, TNFR2 agonism in primary human cells, activity in multiple preclinical efficacy models, and a very well-tolerated profile in early non-GLP toxicology studies.

Jay-Z: The lead antibody called <unk> 165, and it has highly desirable properties, including exquisite TNF or to selectivity.

Jay-Z: TNF are two agonism in primary human cells activity in multiple preclinical efficacy models and a very well tolerated profile in early non GOP toxicology studies.

Jay-Z: We have developed a manufacturing cell line for the lead and are conducting upstream and downstream process development with the aim of entering the clinic for this program in the first half of 2025. Later this year, we plan to present the first preclinical data for Nectar 0165 at an upcoming medical conference. As we move forward with our IND-enabling studies, there is growing interest in a novel selective TNFR2 agonist like Nektar 0165. And thus, we remain open to the opportunity of working with companies that have an interest in these areas to strategize on the best path forward.

Jay-Z: We have developed the manufacturing cell lines for the lead and are conducting upstream and downstream process development with the aim to enter the clinic for this program in the first half of 2025.

Jay-Z: Later this year, we plan to present, the first preclinical data for <unk> 165 at an upcoming medical conference.

Jay-Z: As we move forward with our IND, enabling studies there is growing interest for our novel selective TNF are two agonist like Nektar 165, and thus we remain open to the opportunity in working with companies that are interested in these areas to strategize on the best path forward.

Jay-Z: Now, let's switch gears to our IL-15-based oncology program, Nektar 255. Nektar 255's IL-15-based mechanism of action holds great promise as a combination agent with cell therapies and other mechanisms, such as checkpoint inhibitors. And we are exploring the best partnering paths for continued development of this drug candidate. Our Nektar-sponsored trial, combining Nektar 255 with the approved CD19 CAR T's, Brionzi and Yuskarta, for the treatment of patients with a Large B-cell Lymphoma, has enrolled 15 patients in the dose escalation portion of the study.

Jay-Z: Now, let's switch gears to our IL 15 based oncology program <unk>.

Jay-Z: <unk> 255, its IL 15 based mechanism of action holds great promise as a combination agent with cell therapies and other mechanisms such as checkpoint inhibitors and we are exploring the best partnering paths for continued development for this drug candidate.

Jay-Z: Our <unk> sponsored trial, combining metric $2 55, with the approved CD 19 car T is briana Z in used cars.

Jay-Z: For treatment of patients with the large b cell lymphoma has enrolled 15 patients in the dose escalation portion of the study.

Jay-Z: The combination of Nektar-255 embryology is also being studied in a separate investigator-sponsored trial at Pratt-Hutton. We are targeting the potential submission of data from these studies at medical meetings in the second half of this year. A clinical trial in non-small cell lung cancer sponsored and funded by AbleZeta, which evaluates the combination of AbleZeta's tumor infiltrating lymphocyte cell therapy plus Nektar 255 and Checkpoint Inhibitor is also ongoing and enrolling patients. And with our partner, Merck KGA, we have also been evaluating Nektar 255 in combination with defense versus single-agent Bevenci And that study is on track to potentially report interim PFS data later this year. And with that, I will turn the call over to Sandy for a review of our financial guide. Sandy?

Jay-Z: The combination of mix or $2 55, and <unk> is also being studied in a separate investigator sponsored trial at Fred Hutch.

Sandy: We are targeting the potential submission of data from these studies at medical meetings in the second half of this year.

Sandy: Our clinical trial in non small cell lung cancer sponsored and funded by April data, which evaluates the combination enables tumor infiltrating lymphocyte cell therapy, plus like 235, and checkpoint inhibitor is also ongoing and enrolling patients.

Sandy: And with our partner Merck <unk>, we have also been evaluating an extra $2 55 in combination with defense yes.

Sandy: It's the single agent of Mcl in the phase II javelin medley study and that study is on track to potentially report interim PFS data later this year.

Sandy: And with that I will turn the call over to Sandeep for a review of our financial guidance pending.

Sandy: Thank you, Jay-Z, and good afternoon, everyone. We ended the year in a very strong financial position with $329.4 million in cash and investments and with no debt on our balance sheet. As Howard stated earlier, today's announcement of a $30 million financing further strengthens our cash position. Our revenue was $23.9 million for the fourth quarter of 2023 and $90.1 million for the full year of 2023. Our operating costs and expenses for the fourth quarter of 2023 were $57.4 million and $353.8 million for the full year 2023.

Sandy: Thank you Jamie and good afternoon, everyone.

Sandy: Ended the year in a very strong financial position with 329 $4 million in cash and investments and no debt on our balance sheet and.

Sandy: As Howard stated earlier today's announcement of a $30 million financing further strengthens our cash position.

Sandy: Our non-operating expenses for the fourth quarter of 2023 were $8.6 million and $12.6 million for the full year 2023. Q4 2023 included a non-cash charge of $6.1 million, or $0.03 per share, for the reclassification of the foreign currency translation adjustment to income related to the wind-down of our India legal entity. As a reminder, our India facility was sold in December 2022 for approximately $12 million, with the wind-down of the entity occurring in 2023.

Sandy: Our revenue was $23 $9 million for the fourth quarter of 2023 and $91 million for the full year of 2023.

Sandy: Our operating costs and expenses for the fourth quarter of 2023, we're at 57 $4 million and $353 8 million for the full year 2023.

Sandy: Our non operating expenses for the fourth quarter of 2023, or $8 6 million and $12 6 million for the full year 2023.

Sandy: Q4, 2023 included a non cash charge of $6 1 million or three cents per share for the reclassification of the foreign currency translation adjustment to income related to the wind down of our India legal entity as.

Sandy: As a reminder, our India facility was sold in December 2022 for approximately $12 million with the wind down of the entity occurring in 2023.

Sandy: Our net loss for the fourth quarter of 2023 was $42.1 million, or 22 cents per share. For the full year of 2023, our net loss was $276.1 million, or $1.45 per share. Excluding $111.8 million in non-cash goodwill and other impairment charges, the net loss on a non-GAAP basis for the full year 2023 was $164.3 million, or 86 cents diluted loss per share. Looking forward to 2024 and beyond, our financial position remains strong, in part reflecting the cost savings initiatives we undertook last year.

Sandy: Our net loss for the fourth quarter of 2023 with $42 1 million or 22.

Sandy: Sure.

Sandy: Full year of 2023, our net loss was $276 $1 million alright dollars 45 per share.

Sandy: Excluding 111 $8 million in noncash goodwill and other impairment charges net loss on a non-GAAP basis for the full year 2023 was $164 3 million or <unk> 86 cents.

Sandy: Basic and diluted loss per share.

Sandy: Looking forward to 2024 and beyond our financial position remains strong in part reflecting the cost savings initiatives. We undertook last year, we plan to end 2024 with $200 million to $225 million in cash and investments.

Operator: We plan to end 2024 with $200 to $225 million in cash and investments. In addition to the $30 million pipeline we announced this morning, our 2024 cash guidance also includes $15 million resulting from an amendment executed today on a former 2020 agreement with certain entities in the health care royalty business. Our CASH runway now extends well into the third quarter of 2026, which will take us through key value-generating milestones, including Phase II ResPeg data in atopic dermatitis and alopecia areata.

Operator: In addition to the $30 million Pie, we announced this morning, our 2024, our cash guidance also includes $15 million, resulting from an amendment executed today on a former 2020 agreement with certain any piece of healthcare royalty.

Operator: Our cash runway now extends out extend well into the third quarter of 2026, which will take us through key value generating milestones, including phase II <unk> data in atopic dermatitis in alopecia Areata.

Operator: Our revenue for the full year of 2024 is expected to be between $75 million and $85 million, which includes $55 to $65 million in non-cash royalties and $20 million to $25 million in product sales. We anticipate full-year R&D expenses will range between $120 million and $130 million. This includes approximately $5 to $10 million of non-cash depreciation and stock-based compensation expense. The increase in R&D spend for 2024 over 2023 represents an increased investment in two RISPG Phase 2b studies in atopic dermatitis and alopecia areata, as well as R&D enabling studies for our antibody program Nektar 0165.

Operator: Our revenue for the full year of 2024 is expected to be between $75 million and $85 million, which includes 55 to 65 million in noncash royalties in 20 million to $25 million in product sales.

Operator: We anticipate full year R&D expense will range between $120 million and $130 million.

Operator: This includes approximately $5 million to $10 million of noncash depreciation and stock based compensation expense.

Operator: Increase in R&D spend for 2024 over 2023 represents an increased investment in <unk> phase <unk> studies in atopic dermatitis, and alopecia area as well as IND, enabling.

Operator: Studies for our antibody program nectar or $1 65.

Operator: This increase is partially offset by decreased spending on <unk> 255 clinical studies in cell therapy, which are completing in 2024.

Operator: The remaining ongoing clinical studies for <unk> $2 55 are primarily funded by our external partners.

Operator: We expect G&A expense for the full year of 2024 to be between $70 million and $75 million, which includes five to 10 million of noncash depreciation and stock based compensation expense.

Operator: Our full year noncash interest expense is expected to be between 20 and $25 million as I stated earlier, we expect to end this year with $200 million to $225 million in cash and investments.

Operator: This increase is partially offset by decreased spending on Nektar 255 clinical studies and cell therapy, which are expected to complete in 2024. The remaining ongoing clinical studies for Nektar 255 are primarily funded by our external partners. We expect GNA expense for the full year of 2024 to be between $70 million and $75 million, which includes $5 to $10 million of non-cash depreciation and stock-based compensation expense. Our full-year non-cash interest expense is expected to be between $20 and $25 million. As I stated earlier, we expect to end this year with $200 to $225 million in cash and investments. And with that, we will now open the call for questions. Crystal? Thank you.

Operator: And with that we will now open the call for questions Crystal.

Crystal: Thank you.

Operator: As a reminder, to ask a question, please press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again.

Crystal: As a reminder to ask a question. Please press Star then one on your telephone and wait for your name to be announced to withdraw your question. Please press star one again.

Operator: In the interest of time, we do ask that you please limit yourself to one question at this time. Please stand by while we compile the Q&A roster. And our first question will come from Jay Olson from OPCO. Your line is open.

Crystal: In the interest of time, we do ask that you. Please limit yourself to one question at this time.

Operator: Please standby, we compile the Q&A roster.

Operator: And our first question will come from Jay Olson from Opco. Your line is open.

Chong: Oh, hey, this is Chong on the line for Jay. Thank you for taking the question and congratulations on the progress. Maybe just on the RASPAC-80 study, I'm wondering if you can talk about the initial feedback from doctors and patients participating in the study, especially in the context that there are many other competing trials out there. Also, if you could also comment on the recruitment progress versus your internal expectation, that would be great. And I have a quick follow-up question after that. Thank you.

Operator: Oh, Hey, this is Joe on the line for Jay. Thank you for taking my question and congrats on the progress.

Chong: Maybe just a rough patch 80 study I'm wondering if you can talk about the initial feedback from doctors and patients participating in the study.

Chong: Especially in the context that there are many other competing trials out there.

Chong: Also if you also could comment on the recruitment of progress thus far versus your internal expectation that'll be great and I have a quick follow up question after that thank you.

Chong: Mary you want to take that question.

Howard W. Robin: Yes, sure Howard, thank you. Hi Joe, this is Mary Tagliaferri.

Chong: Yes sure Howard. Thank you Hi, Joe This is Mary Tagliaferri.

Mary Tagliaferri: When we look at the aggregate data from site activation screening activities and enrollment we are on track to have our topline induction data from the study in the first half of 2025 and in terms of the feedback.

Mary Tagliaferri: We're really pleased with the type of screening we are seeing and we believe this is driven by the data that was presented by Jonathan Silverberg.

Mary Tagliaferri: 2023, the doctors really do see that one <unk> is a very rapid onset of action number two the depth of response that was seen with <unk>.

Mary Tagliaferri: Mean percent change in easy after only 12 weeks of treatment. When most studies looking at induction period of 16 weeks. The doctors have been very impressed with that and then certainly if their patients. They really love the durability that we saw in patients were off treatment for nine consecutive months.

Mary Tagliaferri: And they were able to maintain that very deep response and easy. This is all very very attractive for recruiting patients to the study. So we're doing very well I have heard that other stuff.

Mary Tagliaferri: Pleased with enrollment and we're not experiencing that.

Mary Tagliaferri: You know, when we look at the aggregate...

Mary Tagliaferri: Got it. Thank you and just a quick follow up just wondering to what extent, you'll kind of leverage the clinical sites for the study for the upcoming alopecia Areata initiation. So can you just use the same sites or are there some other.

Mary Tagliaferri: Got it. Thank you. And just a quick follow-up. I'm just wondering to what extent you can leverage the clinical sites for the AD study for the upcoming alopecia areata initiation. Can you just use the same sites, or is there another layer of work you need to do?

Mary Tagliaferri: Layer of working to do.

Howard W. Robin: Yes, so we are going to use

Speaker Change: Yes, so we are going to use 12 site.

Mary Tagliaferri: We're going to use 12 sites that are participating in the AD study, in our alopecia study, and those physicians are very excited to have an opportunity for a second skin disease to evaluate RezPeg in alopecia areata, and again, they're really eager to see a durability of response because, of course, when they treat their patients with JAK inhibitors and they grow their hair back, immediately they start to lose their hair once they discontinue treatment with the JAK inhibitors, so the promise of an age of durability and restore immune privilege is definitely really encouraging and exciting to the physicians I've been speaking to. Okay, thank you.

Mary Tagliaferri: Better participating in the <unk> study in our <unk> study and the physicians are very excited to have an opportunity for a second skin disease to evaluate <unk> in alopecia and again, they are really eager to see durability.

Operator: Okay, thank you so much.

Operator: Durability of response because of course, when they see their patients with JAK inhibitors and they are back.

Operator: Lately, they start to lose their hair Wednesday discontinued treatment with a JAK inhibitor. So the promise of an agent.

Operator: Ed you probability and restore immune privilege is definitely really encouraging and exciting.

Operator: Since I've been speaking to.

Operator: Okay. Thank you so much.

Speaker Change: Thank you.

Operator: And our next question will come from Roger Song from Jeffries. Your line is open.

Operator: And our next question will come from Roger song from Jefferies. Your line is open.

Kambiz: Hi team, this is Kambiz on behalf of Roger. Maybe just following up on the alopecia areata study, how many total clinical sites will you be enrolling and what's kind of the geographic distribution of those sites, and then for some key baseline characteristics for the patients in these studies will be most of them be JAK inhibitors, refractory, any detail there would be?

Economies: Hi team this is economies on for Roger.

Kambiz: Just following up on the alopecia Areata study how.

Howard W. Robin: Sure. Yeah. Mary, do you want to take that again?

Kambiz: How many total clinical sites will you be enrolling.

Mary Tagliaferri: It's kind of the geographic distribution of those sites and then Bruce.

Mary Tagliaferri: For some key baseline characteristics for the patients in those studies.

Mary Tagliaferri: Most of them.

Howard W. Robin: JAK inhibitor refractory.

Mary Tagliaferri: Any detail there would be appreciated.

Howard W. Robin: Sure.

Howard W. Robin: Yes.

Mary Tagliaferri: Yeah, thanks, Howard. We'll have slightly over 30 sites. We're going to be in Canada, the United States, and Poland. You know, as you may imagine, when you're in Poland, they definitely have an access issue. And it also takes a very long time for those patients to get in to see a dermatologist. So, you know, it's actually a very favorable environment to enroll patients. These patients are going to be JAK inhibitor-naive patients, and then our key, you know, inclusion criteria is the severe to very severe alopecia patients, so these patients all have to have a salt score greater than or equal to 50. And, of course, this is the same patient population where they're SYNTIB, and Lily's JAK and Pfizer's JAK inhibitor have the same eligibility criteria for their pivotal trials.

Mary Tagliaferri: Yeah. Thanks, Eric we'll have slightly over their site, we're going to be in Canada, and the United States and in Poland.

Mary Tagliaferri: As you may imagine when you're in Poland.

Mary Tagliaferri: We have an access issue and it also takes a very long time for those patients to get in to see a dermatologist. So.

Mary Tagliaferri: It's actually a very favorable environment to enroll patients these patients.

Mary Tagliaferri: Are going to be Jack.

Mary Tagliaferri: <unk> inhibitor naive patients and then our key inclusion criteria is this the year to very severe alopecia. So these patients all have to have a salt greater than or equal to 50 and of course. This is the same patient population.

Mary Tagliaferri: Where theyre sitting there that lilly's jacket.

Mary Tagliaferri: Pfizer's JAK inhibitor.

Mary Tagliaferri: Eligibility criteria for the pivotal trial.

Howard: Great. Thank you.

Speaker Change: Thank you.

Operator: Our next question will come from Jessica Fye from J.P. Morgan. Your line is open.

Mary Tagliaferri: Our next question will come from Jessica Fye from J P. Morgan Your line is open.

Operator: Yeah.

Jessica Macomber Fye: Hey, thanks for taking my question. For the phase 2 BA topic DERM trial, what's the threshold patients need to meet to be considered a responder and be re-randomized at week 16? And then, also curious, what's your latest thinking on whether the AD or the alopecia trial will read out first and why?

Jessica Macomber Fye: Hey, Thanks for taking my question.

Jessica Macomber Fye: Those seem to be atopic derm trial.

Jessica Macomber Fye: Threshold efficiencies need to be considered a responder and be re randomized at least <unk> and then also curious what's your latest thinking on whether the $8 million or the alopecia trial will read out first and why.

Mary Tagliaferri: Yeah, hi Jessica, it's Mary. So to be re-randomized, the patient has to have an EC50 or above. When they are re-randomized to the maintenance dose once a month or once every three months, they will be on the same dose that they were randomized to in the induction period. Thank you. Bye-bye. And did you have a second question?

Speaker Change: Yes, Hi, Jessica Mary Jo to be re randomized the patient has to have EC 50 or above when they are re randomized to the maintenance dose.

Mary Tagliaferri: Once a month once every three months they will be on the same dose that they were randomized to in the injection period.

Mary Tagliaferri: Okay.

Speaker Change: Uh huh.

Speaker Change: And so you have a second.

Speaker Change: Good question.

Mary Tagliaferri: Oh, just the timing of alopecia versus A.D. data? Yeah, yeah, so we expect the A.D. trial to read out first.

Speaker Change: Just the timing of alopecia versus 80 data, yes, yes, so we expect to read out first.

Howard W. Robin: Yeah, so we expect that you will need to try it out first.

Speaker Change: Okay. Thank you.

Speaker Change: Thank you.

Speaker Change: Thank you.

Operator: Our next question will come from Julian Harrison from BTIG. Your line is open.

Howard W. Robin: Our next question will come from Julian Harrison from <unk>. Your line is open.

Julian Reed Harrison: Hi, congrats on the progress and thank you for taking my questions. I'm curious if you could remind us how you think about efficacy beyond 12 weeks of dosing with BreastPeg and Atopic Derm. Do you expect a plateau at some point, or do you expect response rates to maybe be progressive through 44 weeks of dosing? And then, with regard to the Lilly litigation, sorry if I missed it. I'm wondering if you could comment on its current status and timing of next steps.

Julian Reed Harrison: Hi, Congrats on the progress and thank you for taking my questions.

Julian Reed Harrison: I'm curious if you could remind us how youre thinking about efficacy beyond 12 weeks of dosing with <unk> in atopic derm.

Julian Reed Harrison: Do you expect the plateau at some point or do you expect response rates, maybe progressive through 44 weeks of dosing and then with regards to the Lilly litigation, sorry, if I Miss It I'm wondering if you could comment on its current status and timing of next steps.

Howard W. Robin: Mary, why don't you take the first part, and I'll take the second?

Speaker Change: Mary I wanted to take the first part and I'll take the second part.

Mary Tagliaferri: Yeah, you know, I definitely think that as we extend our induction period from 12 weeks to 16 weeks, we're going to see a greater number of patients experience a deeper response. So, I very much look forward to seeing what the mean percent change is. As you know, our easy mean percent change from baseline to 12 weeks was 83%, and as such, that was greater than any of the biologic agents. So, if you look at Dupree or Odbrey or Ledbrey or Nemo or Roka, you know, we definitely saw the deepest response, but I do believe that we'll probably see more patients who experience a D75 and even a D90 as we go out an additional 4 weeks in the induction period.

Howard W. Robin: Yeah.

Mary Tagliaferri: I definitely think that as we extend our induction period from 12 to 16 weeks we're.

Mary Tagliaferri: We're going to see a greater number of patients.

Mary Tagliaferri: Experienced a deeper response.

Mary Tagliaferri: So I very much look forward to seeing what the mean percent change is as you know our E. The mean percent change from baseline to 12 weeks was 83% and as such that greater than any of the biologic agents. When you look at Q P. R Adria Woodbridge.

Mary Tagliaferri: Our Nemo, our roka, we definitely saw the Dps response, but I do believe that we'll probably see more patients who experienced a 75 and Ethernet benign DSV go out additional four weeks in an induction period.

Howard W. Robin: With regard to Lilly... You know, Lilly, after we filed our complaint in federal courts, Lilly tried to convince the federal court judge to dismiss the case, as you know. But last week, the federal judge refused Lilly's request, and the judge agreed to allow Nektar's claims, primary claims, to move forward. And we expect the judge to set a trial date in 2025. The court also ordered the parties to engage in mediation within the next three months to try to resolve the issue. And so we're very, very happy the case is moving forward. The judge did not dismiss the case. And we look forward to vindicating ourselves through the litigation process.

Mary Tagliaferri: With regard to Lilly.

Operator: Excellent. Thanks very much.

Howard W. Robin: Lilly after after we filed our complaint in federal courts.

Operator: <unk> tried to convince the federal Court judge dismissed the case as you know.

Operator: Last week, the federal Judge refused globally request.

Operator: The judge agreed to allow knickers claims primary claims to move forward and we expect the judge to settle trial date in 2025.

Operator: <unk> also ordered the parties to engage in mediation within the next three months to try to resolve the issue.

Operator: So we're very very happy the cases moving forward. The judge did not dismiss the case and we look forward to vindicating ourselves through the litigation process.

Operator: Excellent thanks very much.

Speaker Change: Thank you.

Operator: And as a reminder, to ask a question, please press star 11. And our next question will come from Andy Shea from William Blair. Your line is open. Great, thanks.

Operator: And as a reminder to ask a question. Please press star one one.

Andy Shea: Great. Thanks for taking our questions. Two quick ones for us.

Andy Shea: And our next question will come from Andy Shay from William Blair. Your line is open.

Mary Tagliaferri: One question is, can you talk about this ebb and flow dynamic associated with hair loss in alopecia? Would enrolling kind of severe and really severe patients kind of mitigate that variability? And the second question has to do with the TNF receptor 165 program. We know that the receptor family is a trimer, so I guess to maximally agonize this receptor, you might have to have a trimer design. I'm just curious if that's kind of a part of the design that goes into 165. And downstream from that, there's also kind of clustering. So, is that also a part of the design of the molecule? Thanks.

Andy Shea: Great. Thanks for taking our questions.

Speaker Change: Two quick ones for us.

Mary Tagliaferri: One is can you talk about this ebb and flow dynamic.

Mary Tagliaferri: Especially with <unk>.

Mary Tagliaferri: Alopecia.

Mary Tagliaferri: Wood enrolling kind of severe and really severe patients kind of mitigate that variability.

Mary Tagliaferri: And the second question has to do with the TNF receptor 165 program.

Mary Tagliaferri: We know that the receptor family is a trimer, so I guess to maximally.

Mary Tagliaferri: <unk> receptor you might have to have like a trimer design I'm just curious if that's kind of a part of the design that goes into them.

Mary Tagliaferri: 165, and downstream from there. There is also kind of clustering. So is that also a part of the design of the molecule.

Mary Tagliaferri: Thanks.

Mary Tagliaferri: Mary, do you want to take the hair loss one? Yeah. And then Jay, you can take the PNF one too. Yeah. So, hi, Andy, it's Mary.

Mary Tagliaferri: Mary do you want to take the hair loss and then JV.

Mary Tagliaferri: Yes, So hi, Andy it's Mary So you're exactly right one patients go into the severe into very severe.

Mary Tagliaferri: So you're exactly right. Once patients go into the severe and the very severe, generally speaking, there is no regrowth of the hair. And that's, you're exactly right, that's why the eligibility criteria and even the threshold for approval by the FDA are this patient population. You know, patients do start out experiencing actual hair loss, but as the disease progresses, certainly the hair becomes more extreme and, you know, even towards baldness. But once the patient loses their hair, it's very rare for them to have regrowth of their hair without some sort of medical intervention.

Mary Tagliaferri: Generally speaking there is not.

Mary Tagliaferri: Ah regrowth of hair and you are exactly right that that's why the eligibility criteria, even the threshold for approval by the FDA is this patient population.

Mary Tagliaferri: It does patients do start out with experienced feed patchy hair loss.

Mary Tagliaferri: But as the disease progresses, certainly becomes more extreme and even towards baldness that when a patient loses their hair.

Speaker Change: Very fair.

Mary Tagliaferri: Four.

Mary Tagliaferri: And to have re growth of their hair without.

Speaker Change: Some sort of medical intervention and then ill pass over to the second question to Jason.

Jay-Z: And then I'll pass over the second question to Mary. Yeah, thanks, Mary.

Jay-Z: Yeah, thanks, Mary. Thanks, Andy, for your question. You're right.

Mary Tagliaferri: Yes, Thanks, Marion Thanks, Andy for your question.

Mary Tagliaferri: So you are right the TNF.

Jay-Z: So TNF, proteins, or trimers. But as we learn more and more about the biophysics of the receptors and the way the plot domains, right, which are the 16-rich domains that hold together the receptor subunits, they actually work to create dimers of receptors. And then a trimer comes along in cluster six.

Mary Tagliaferri: Proteins are drivers, but as we've learned more and more about the biophysics of the receptors and the way the ply domains right, which are the associated rich domains of hold together the receptor subunits.

Jay-Z: I actually worked to create dimers.

Jay-Z: Okay.

Jay-Z: And then a trimer comes along in clusters six.

Jay-Z: Receptors or Three Pairs of Diamonds. So, and then you can get additional clustering. And some of this ultrastructure has been published, and some structural studies have been done. Well, we've come to understand, A, through learning about the cell biology of these receptors, the way these divers need to multimerize, and the way the epitopes for binding to the receptors need to work, that the epitope is actually fundamentally important. One of the things we discovered with Nektar 0165 is that it's an epitope that has its own unique properties, and it can signal in a completely cluster-independent fashion.

Jay-Z: Receptors or three pairs of dimers. So and then you can get additional clustering. Some of this ultra structure has been published and some structural studies have been done.

Jay-Z: Well, we've come to understand through learning about the cell biology of these receptors.

Jay-Z: These divers need to <unk> and the way the epitopes for binding to the receptor speak to work is that the epitope is actually fundamentally important.

Jay-Z: One of the things we've discovered with nectar 015 is that it's an epitope that has its own unique properties.

Jay-Z: It can signal and a completely cluster independent fashion for example, it doesn't need FC.

Jay-Z: For example, it doesn't need FC. It doesn't even need valence. That's one of the things that's really unique and highly differentiated about the antibodies that we've created. And keeping in mind all of these ultrastructural forms of the receptor, and then the different states that the receptor can occupy, is obviously one of the key things that's important for developing a successful activity.

Jay-Z: Doesn't even these balances.

Jay-Z: That's one of the things Thats really unique and highly differentiated about the antibodies that we've created.

Jay-Z: And keeping in mind all of these ultra structural forms of the receptor.

Jay-Z: And then the different states that the receptor can occupy is obviously one of the key things that is important for developing a successful outcome.

Speaker Change: Thanks for the question.

Speaker Change: Thank you.

Operator: And I am showing no further questions from the phone lines, and I'd like to turn the conference back over to Howard Robin for any closing remarks.

Jay-Z: And I am showing no further questions from the phone lines I'd now like to turn the conference back over to Howard Robin for any closing remarks.

Howard W. Robin: Well, thank you, everyone, for joining us today. As we stated on our call, we really remain focused on executing the development of RezPeg and our immunology-focused research programs. I'd like to thank all of our employees for their very hard work and thank all of our shareholders, new and existing, for their continued support. We look forward to providing you with updates on our progress, so stay tuned. Thanks for joining us again.

Howard W. Robin: Well. Thank you everyone for joining us today and as we stated on our call. We really remain focused on executing the development of <unk> in our immunology focused research programs I'd like to thank all of our employees for their very hard work and thank all of our shareholders new and existing for their continued support and we look forward to providing you.

Howard W. Robin: With updates on our progress so stay tuned and thanks for joining us again.

Operator: Thank you. This concludes today's conference call. Thank you for your participation. You may now disconnect. Everyone have a wonderful day.

Speaker Change: Thank you. This concludes today's conference call. Thank you for your participation you may now disconnect everyone have a wonderful day.