Is NKTR (Nektar Therapeutics) Halal or Haram?

Based on our AAOIFI-standard shariah screening, NKTR is classified as Doubtful. It passed 3 of 4 compliance screens. Some scholars may permit investing with income purification, while others advise avoiding it. We recommend consulting a qualified Islamic scholar before investing in NKTR.

Nektar Therapeutics is a biopharmaceutical company dedicated to discovering and developing medicines for unmet medical needs in the United States and internationally. Its primary pipeline includes Bempegaldesleukin, an IL-2 pathway agonist currently in advanced clinical trials to treat various cancers, including metastatic melanoma and renal cell carcinoma. For Muslim investors using AAOIFI standards, NKTR is currently classified as Doubtful. While the company's core biotechnology operations are perfectly aligned with Islamic values, it unfortunately fails the financial screening criteria due to excessive interest income. From a financial perspective, Nektar boasts a remarkably healthy balance sheet regarding leverage, with a debt-to-market cap ratio of just 7.9%, well below the 33% limit. However, the company generates 18.90% of its revenue from interest-bearing sources, completely breaching the 5% maximum threshold allowed for Shariah compliance. Because this failure is tied to interest income rather than core business activities, Muslim investors should monitor Nektar's future earnings reports. If the company shifts its cash management strategy and reduces its reliance on interest-yielding securities, it could potentially regain a compliant status in the future. Nektar Therapeutics operates in the Healthcare sector under the Biotechnology industry and is headquartered in San Francisco, CA, US. The company is led by CEO Howard W. Robin and employs approximately 61 people.

NKTR was screened using AAOIFI-based shariah compliance criteria. Four tests are applied: (1) Business Activity — the company's core business must not derive primary income from haram (prohibited) activities such as alcohol, gambling, tobacco, or interest-based finance. (2) Debt-to-Market-Cap — total debt must not exceed 33% of market capitalization. (3) Interest Income — interest income must not exceed 5% of total revenue. (4) Cash & Securities — cash and interest-bearing securities must not exceed 33% of market cap. NKTR passed 3 of these 4 screens.

NKTR was last screened on 2026-04-27. Shariah compliance status can change as companies report new financial data, acquire new businesses, or shift revenue streams. We recommend checking back periodically for the most up-to-date screening results.