NEW YORK (TheStreet) -- The risk/reward ratio for shares of Nektar Therapeutics (NKTR - Get Report) is "potentially interesting" heading into a data readout from a trial of its breast cancer treatment, NKTR-102, JPMorgan stated. The data for the trial is slated to be released later this month, the firm noted.
WHAT'S NEW: It is particularly difficult to predict the results of the Phase III trial of NKTR-102, JPMorgan analyst Jessica Fye wrote in a note to investors on March 9. That's because one of seven different chemotherapy treatments may be used on the patients in the control arm of the study and because a prior, Phase II study of the drug did not have a control arm, Fye explained. Nektar's shares reflect only about $2 per share of value for NKTR-102, and the stock could rise about $5 if NKTR-102 shows a statistically significant overall survival benefit, Fye contended. The analyst only sees a 20% chance of that scenario occurring and believes that the trial results could fall in "a gray area," in which patients using the drug experience significant improvement in progression free survival and improvement in overall survival that is not statistically significant. Fye kept a $19 price target and Overweight rating on Nektar Therapeutics' shares.
PRICE ACTION: Over the last three months, Nektar shares are down about 11%, but over the last five days the stock has gained 4%.
Reporting by Larry Ramer.