Nektar Therapeutics (NASDAQ:NKTR) released on Tuesday statistically significant data from the 16-week induction period of the ongoing Phase 2b REZOLVE-AD study of investigational rezpegaldesleukin.

The trial met its primary endpoint of the mean improvement in Eczema Area and Severity Score (EASI) from baseline at week 16 for all three dose arms of rezpegaldesleukin versus placebo.

All three dose arms also achieved statistical significance at week 16 for the key secondary endpoints of EASI-75 (percent of patients who achieve ≥75% reduction in EASI from baseline), EASI-50 (percent of patients who achieve ≥50% reduction in EASI from baseline) and BSA (mean percent improvement in Body Surface Area score from baseline).

Also Read: Nektar Therapeutics Shares Double On Promising Eczema Drug Data

After 16 weeks, patients had a 53% to 61% improvement in symptoms. This was compared to a 31% improvement for the placebo group.

William Blair writes, “We believe the efficacy parameters of rezpeg appear to be comparable to the OX40 drug class though numerically lower than Dupixent across the Phase IIb programs.”

Given the chronic nature of atopic dermatitis, analyst Andy Hsieh wrote that the high frequencies (high 30% to high 40% across a broader set of rezpeg safety data that includes the Phase 2b results) of injection site reactions versus Regeneron Pharmaceuticals Inc (NASDAQ:REGN)/Sanofi SA’s (NASDAQ:SNY) Dupixent (in the high-single- to mid-double-digit percent range) could be a commercial liability for rezpeg.

If rezpeg indeed demonstrates a remittive effect, it could mitigate injection site reactions, though investors will have to wait until the next update (Phase IIb REZOLVE-AD maintenance data) in early 2026 or 52-week off-treatment results in 2027.

The analyst adds, “Since we believe there is an absence of clear differentiation in the highly competitive atopic dermatitis field, we view today's stock reaction (up roughly 135%) as a valuation normalization event and not a reflection of investors ascribing value to a differentiated asset. Essentially, Nektar shares now trade around the company's current cash levels. We await further updates to gain appreciation of rezpeg’s potential remittive effect, which could elevate the asset against competitive offerings.”

NKTR Price Action: Nektar Therapeutics stock is up 26.83% at $31.01 at publication on Wednesday.

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