UPDATE: Bank of America Downgrades Nektar Therapeutics to Underperform, Maintains $6 PT

Bank of America lowers its rating on Nektar Therapeutics

to Underperform from Neutral and maintains its $6 price target as risks offset the company's potential upside in 2012. Bank of America says, "We see two key risks in 2012 that may more than offset favorable pipeline developments. First, the key valuation driver for NKTR is ‘118 in opioid-induced constipation (

), with phase 3 data expected in late-2012. Considerable data in 2012 from competitors could weigh on the long-term competitive outlook for ‘118. Second, we expect a dilutive renewal of the $215mn convert maturing in Sept (strike price could be substantially lower than $25). Short of attaining marketing partnerships, pipeline developments are unlikely to drive near-term valuation in our view." NKTR closed at $6.30 per share on Thursday.