Nektar's lead drug candidate shows promise in eczema trial, shares soar

By Puyaan Singh

June 24 (Reuters) - Nektar Therapeutics NKTR.O said on Tuesday its lead drug candidate met the main goal of a mid-stage study testing the drug in eczema patients, sending its shares up by nearly 140%.

In the 393-patient global trial, experimental drug rezpegaldesleukin induced a statistically significant reduction in the severity of eczema, as measured on a widely used index.

Eczema, also known as atopic dermatitis, is a chronic skin condition that causes inflammation, redness and intense itching. An estimated 16.5 million adults in the U.S. suffer from it.

The rapid onset of response observed could be a key differentiator from other immune modulation approaches such as OX40 pathway inhibitors, CEO Howard Robin said in a call with analysts.

OX40 pathway inhibitors are a class of drugs that includes Amgen AMGN.O and Kyowa Kirin's 4151.T experimental drug, rocatinlimab, and Sanofi's SASY.PA candidate, amlitelimab.

Rezpegaldesleukin also met the study's secondary goals such as reducing disease severity by 50% to 75% or more. The highest bi-weekly 24 mg dose saw a reduction of 90% or more.

There was also no increase in incidence of conjunctivitis and infections such as oral herpes compared with placebo in the trial, Robin added, which could help set rezpegaldesleukin apart from approved agents and treatments in later development stages.

Conjunctivitis incidence was seen in the study of Sanofi SASY.PA and Regeneron's REGN.O Dupixent.

The trial results Nektar disclosed on Tuesday all but guarantees that the late-stage trial will be a success as well, Jonathan Silverberg, professor of dermatology at George Washington University School of Medicine and Health Sciences, said on a call.

Eczema has multiple approved treatments, including Dupixent, AbbVie's ABBV.N Rinvoq, Pfizer's PFE.N Cibinqo, Eli Lilly's LLY.N Ebglyss as well as some generic drugs such as cetirizine.

"First-line dupilumab (Dupixent) is not going away. That is still a well-beloved drug in dermatology," David Rosmarin, Chair of the Department of Dermatology, Indiana University School of Medicine, said on a call.

"(But) there is value in looking at the medicine for both first- and second-line use."