Story
Nektar Therapeutics Stock Rises on $90 Million Jury Verdict Against Eli Lilly
Summary
Nektar Therapeutics shares gained after a federal jury awarded the company $90 million in a contract dispute with Eli Lilly, though an analyst price target cut and a looming data readout tempered the rally.
Shares of Nektar Therapeutics (NASDAQ: NKTR) rose in pre-market trading after a federal jury in California awarded the company $90 million in a lawsuit against partner Eli Lilly (NYSE: LLY). The verdict provides a significant, though partial, legal victory for the biotechnology firm.
Details of the Verdict
A jury in the U.S. District Court for the Northern District of California found that Eli Lilly had breached the implied covenant of good faith and fair dealing in its license agreement with Nektar. The agreement governed the co-development of the drug rezpegaldesleukin.
The case was initially filed by Nektar in August 2023 with a claim for damages of up to $1 billion. While the $90 million award is substantially less than the amount sought, it represents a notable win. According to the source, the court will set additional interest, and the verdict remains subject to post-trial motions and potential appeals. Nektar disclosed the event in a Form 8-K filing with regulators.
Market Reaction and Outlook
Nektar's stock climbed 1.5% in pre-open trading on September 25. However, the positive momentum was met with some caution from the analyst community. On September 24, Wedbush lowered its price target on Nektar stock to $50 from a previous $80, signaling a more conservative outlook on the company's near-term revenue prospects.
AdInvestors are also closely watching for an upcoming data readout from Nektar's Phase 2b REZOLVE-AA study, which is evaluating rezpegaldesleukin in patients with severe alopecia areata. The company entered a quiet period on September 8 ahead of this data, which is considered a key binary event that could significantly impact the stock's valuation.
Company Context
The legal award provides a near-term financial catalyst for Nektar, which reported having over $1 billion in cash and investments as of mid-2026, giving it a multi-year operational runway. The company's pipeline remains centered on rezpegaldesleukin, which is also advancing through Phase 3 trials for atopic dermatitis.
Despite the pre-market gains, the stock continues to trade well within its 52-week range of $33.40 to $109.00, reflecting the balance between the positive legal news and the uncertainty surrounding future clinical trial results.
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