California-based biopharmaceutical company Nektar Therapeutics has reported revenue of $28.4 million for fourth quarter of 2008, compared to revenue of $65.8 million for the same period of 2007. For the twelve months of 2008, revenue was $90.2 million as compared to $273.0 million in the same period of 2007.

The decrease in revenue is primarily the result of lower product manufacturing revenues due to the termination of the company's inhaled insulin collaboration with Pfizer in late 2007.
 
Net income for the quarter ended December 31, 2008 was $76.8 million or $0.83 per share, compared to net income of $39.0 million or $0.42 per share for the same quarter of 2007. For the year 2008, the company reported a net loss of $34.3 million or $0.37 per share, compared to a net loss of $32.8 million or $0.36 per share for 2007.
 
Research and development expense was $154.4 million in 2008 as compared to $153.6 million for 2007. Included in the $154.4 million of overall research and development spending is approximately $82.0 million of new investments in Nektar preclinical and clinical development programs.
 
Nektar has also continued to make improvements to its operating efficiencies as compared to a year ago. For the twelve months ended December 31, 2008, the company's general and administrative expense was $51.5 million as compared to $57.3 million for the same period a year ago.
 
Nektar completed two significant transactions during the fourth quarter of 2008: 

• The company repurchased $100.0 million of its 3.25% convertible subordinated notes for $47.8 million. As a result, the company recognized a gain of $50.1 million in the fourth quarter, net of transaction costs of $1.0 million and accelerated amortization of our deferred financing costs of $1.1 million.

• It completed the divestiture of certain of its pulmonary delivery assets to Novartis for $115.0 million on December 31, 2008. As a result of the completion of this transaction, the company recognized a gain of $69.6 million in the fourth quarter of 2008.

Howard Robin, President and CEO of Nektar, said: "2008 was a transformational year for Nektar. Using our unique polymer conjugation chemistry platform, we advanced numerous proprietary drug candidates into clinical and preclinical development. Further, we significantly strengthened our financial position with the sale of pulmonary delivery assets and the buy-back of $100 million of convertible debt at a substantial discount. Nektar is exceptionally well-positioned as we enter 2009."