NKTR
Cash in the door, pieces of the pie out the window
Nektar Therapeutics says it priced an upsized $325 million public offering. Translation: the company is raising a chunky amount of money, and it was big enough that the deal got swollen on the way to the finish line.
For investors, this is the classic two-edged sword. On one hand, more cash can help keep the lights on, fund R&D, and give management more breathing room. On the other, new shares usually mean dilution, which is the investing version of realizing the pizza got reordered with smaller slices.
Why you should care
If you already own NKTR, the big question is simple: does this money buy the company enough time and flexibility to create value faster than the dilution drags on it? If you don't own it, this is still a reminder that biotech financings are basically lifelines with strings attached.
Big picture
Nektar gets a stronger balance sheet today, but existing shareholders are footing part of the bill through dilution. The market will be watching whether that cash turns into something more exciting than just a longer countdown clock.