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Nektar Therapeutics Announces Second Quarter 2008 Results
Date:8/6/2008

commercial agreements. Other important risks and uncertainties are detailed in the company's reports and other filings with the Securities and Exchange Commission, including its most recent Quarterly Report on Form 10-Q. Actual results could differ materially from the forward-looking statements contained in this press release. The company undertakes no obligation to update forward-looking statements, whether as a result of new information, future events or otherwise.

Stephan Herrera, 415-488-7699

sherrera@nektar.com

Jennifer Ruddock, 650-631-4954

jruddock@nektar.com

NEKTAR THERAPEUTICS

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share information)

Unaudited Unaudited

Three-Months Ended Six-Months Ended

June 30, June 30,

2008 2007 2008 2007

Revenue:

Product sales and royalties $9,010 $49,302 $19,381 $122,321

Contract research 11,391 16,615 21,012 28,612

Total revenue 20,401 65,917 40,393 150,933

Operating costs and expenses:

Cost of goods sold 5,444 39,490 12,671 96,012

Idle Manufacturing Costs 1,487 - 6,821 -

Research and development 33,500 41,000 70,873 78,492

General and administrative 13,091 13,178 24,802 29,913

Amortization of other

intangible assets 237 237 473 473

Total operating costs and expenses 53,759 93,905 115,640 204,890

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