Nektar Therapeutics (NKTR): A Bull Case Theory

We came across a bullish thesis on Nektar Therapeutics on Clinical Catalysts’s Substack. In this article, we will summarize the bulls’ thesis on NKTR. Nektar Therapeutics's share was trading at $35.23 as of January 29th.

Nektar Therapeutics, a biopharmaceutical company, focuses on discovering and developing therapies that selectively modulate the immune system to treat autoimmune disorders in the United States and internationally. NKTR has strengthened its immunology platform with new data that expands the potential of its lead asset, Rezpegaldesleukin (Rezpeg), and widens its market reach. Rezpeg, already backed by two FDA Fast Track designations and strong Phase 2b REZOLVE-AD results in atopic dermatitis, has now delivered late-breaking findings in patients with comorbid asthma—an opportunity affecting roughly a quarter of eczema patients.

In the main Phase 2b trial, Rezpeg produced 53–61% EASI improvement across dosing cohorts versus 31% for placebo, with a clean safety profile and only eight drug-related severe or serious events, all resolved. The newly released asthma analysis shows that over 50% of Rezpeg-treated patients with baseline ACQ-5 ≥ 0.5 achieved clinically meaningful improvement versus just 13% for placebo, while those with uncontrolled asthma saw statistically significant gains across all doses, including a 75% response rate at the highest dose. This suggests Rezpeg’s T-regulatory mechanism may drive systemic anti-inflammatory benefit beyond the skin.

A crossover sub-analysis further showed Rezpeg’s durability, with placebo patients who switched to Rezpeg achieving a 75% mean EASI reduction and deepening responder rates after 24 additional weeks, reinforcing support for the 24 µg/kg q2w dose entering Phase 3. Collectively, these updates position Rezpeg not just as an eczema therapy but as a potential multi-disease immunology platform. Given Nektar’s small-cap valuation, strengthening data, expanding indications, and multiple upcoming readouts in alopecia areata and type 1 diabetes, the risk-reward profile continues to skew attractively to the upside.

Previously we covered a bullish thesis on Bristol-Myers Squibb Company (BMY) by Magnus Ofstad in March 2025, which highlighted the company’s growth potential through its neuroscience drug Cobenfy, pipeline in cardiology, hematology, and oncology, and the binary risk-reward tied to Alzheimer’s trial outcomes. The company's stock price has depreciated approximately by 8.01% since our coverage. This is because trial setbacks and market skepticism weighed on sentiment. The thesis still stands as Cobenfy’s upcoming Phase III results remain a key catalyst. Magnus Ofstad shares an identical perspective but emphasizes more on the near-term binary risk and potential upside from the Alzheimer’s study.

Nektar Therapeutics is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 36 hedge fund portfolios held NKTR at the end of the third quarter which was 18 in the previous quarter. While we acknowledge the potential of NKTR as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.