Here's Why Nektar Therapeutics Stock Rocketed 90.6% Higher in September

Nektar Therapeutics (NKTR) shares surged 90.6% in October following positive Phase 2 clinical trial results for its lead eczema candidate, rezpegaldesleukin. The drug demonstrated 75% skin clearance in 42% of patients at 16 weeks and 62% at 24 weeks, suggesting strong potential to compete with Regeneron and Sanofi's blockbuster Dupixent. Despite the significant rally, Nektar's $1.05 billion market capitalization on October 3, 2025, indicates a potentially undervalued asset with a promising pipeline, though substantial risk remains pending successful completion of upcoming Phase 3 trials.

Analysis

Shares of Nektar Therapeutics (NKTR 0.08%), a biopharmaceutical company, shot 90.6% higher in October, according to data from S&P Global Market Intelligence. Investors have been increasingly enthusiastic about recently announced clinical trial results for its lead candidate, rezpegaldesleukin. In a nutshell, it looks like it could become a top-selling treatment for eczema, an itchy autoimmune disorder that affects roughly 10% of American adults. Nektar's experimental eczema candidate could be a top performer Nektar Therapeutics was founded in 1990, but it doesn't have any commercial-stage drugs that generate revenue right now. For companies in this precarious position, any sign that an experimental candidate could have blockbuster potential can lead to huge gains. Rezpegaldesleukin is the most advanced new drug candidate in Nektar's pipeline, and it took some important steps this month. At the annual European Academy of Dermatology and Venereology conference, investigators presented 16-week data from the phase 2 Rezolve-AD trial. The stock soared because it looks like rezpegaldesleukin can compete fiercely with Dupixent, a popular eczema treatment from Regeneron and Sanofi that generated $14.2 billion in sales last year. In the Rezolve-AD trial, 42% of patients treated with the highest dose tested achieved 75% skin clearance after 16 weeks. This compares well with the results of the phase 3 Solo 2 study. In this pivotal trial that supported Dupixent's application to become an eczema drug, it helped 44% of patients achieve 75% skin clearance after 16 weeks. NASDAQ: NKTR Key Data Points Why Nektar Therapeutics could be a smart buy now Nektar's stock price continued rising last month and into October because it also announced surprising 24-week results. After 24 weeks, 62% of eczema patients treated with Nektar's candidate achieved 75% skin clearance. It's still early, but the results suggest rezpegaldesleukin can become a blockbuster drug down the road. Despite a big gain for the stock, Nektar's market cap was a modest $1.05 billion when the market closed on Oct. 3, 2025. That's a low valuation for a company with an experimental eczema treatment ready for phase 3 trials that appears capable of competing against the market leader. Adding some shares to a well-diversified portfolio could be a smart move. While rezpegaldesleukin looks like a winner so far, Nektar still needs to complete a larger phase 3 trial. If an unforeseen safety issue arises, or it can't repeat the outstanding efficacy results we've already seen, the stock could fall hard. This stock is only appropriate for investors with an extremely high risk tolerance. Nektar Therapeutics (NKTR) experienced a 90.6% share price increase in October, driven by highly encouraging Phase 2 clinical trial data for its lead eczema candidate, rezpegaldesleukin. The Rezolve-AD trial results, presented at the European Academy of Dermatology and Venereology conference, showed that 42% of patients achieved 75% skin clearance at 16 weeks, a figure that improved to 62% at 24 weeks. This efficacy profile positions the drug as a potentially strong competitor to the current market leader, Dupixent from Regeneron (REGN) and Sanofi (SNY), which generated $14.2 billion in sales last year and showed 44% of patients achieving 75% skin clearance at 16 weeks in its pivotal trial. For Nektar, a pre-revenue biotech, these results are transformative, moving its most advanced asset closer to a pivotal Phase 3 trial. Despite the stock's significant rally, its market capitalization of $1.05 billion as of October 3, 2025, suggests the asset may still be undervalued relative to its blockbuster potential. However, the investment thesis is contingent on replicating these results in a larger, more expensive Phase 3 study, where any unforeseen safety issues or failure to meet efficacy endpoints would present a material risk.

Key Decisions for Investors

• Investors with a high-risk tolerance should view NKTR as a speculative asset with significant upside, as its $1.05 billion market cap does not appear to fully price in the multi-billion dollar market potential of rezpegaldesleukin if Phase 3 trials are successful.
• The primary risk is the binary outcome elevationMapof the upcoming Phase 3 trial; any failure to replicate Phase 2 efficacy or the emergence of new safety signals would likely lead to a severe and rapid stock price decline.
• Holders of Regeneron (REGN) and Sanofi (SNY) should monitor Nektar's clinical progress, as rezpegaldesleukin now represents a credible long-term competitive threat to their highly profitable Dupixent franchise.