Nektar Therapeutics Announces Fourth Quarter and Year-End 2007 Financi...(1643 62 Accumulated...),Health

Accumulated deficit (1,089,754) (1,056,993)

Total stockholders' equity 214,439 227,060

Total liabilities and

stockholders' equity $725,103 $768,177

(1) The consolidated balance sheet at December 31, 2006 has been derived

from the audited financial statements at that date but does not

include all of the information and notes required by generally

accepted accounting principles in the United States for complete

financial statements. Certain 2006 amounts have been reclassified

between line items to conform with the 2007 presentation.

NEKTAR THERAPEUTICS

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands, except per share information)

(unaudited)

Twelve-Months Ended December 31,

2007 2006

Cash flows provided by (used in)

operating activities:

Net loss $(32,761) $(154,761)

Adjustments to reconcile net loss to

net cash provided by (used in)

operating activities:

Depreciation and amortization 29,028 33,509

Stock-based compensation 14,779 30,982

Impairment of long lived assets 28,396 9,410

Amortization of gain related to sale

of building (874) (874)

Gain on disposal of investment (860) (2,252)

Loss on sale or disposal of assets 1,843 123

Changes in assets and liabilities:

Decrease (increase) in trade
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