Kymera Therapeutics, Inc. KYMR reported a loss of 82 cents per share in the third quarter of 2024, narrower than the Zacks Consensus Estimate of a loss of 83 cents. In the year-ago quarter, Kymera reported a loss of 90 cents per share.

Collaboration revenues totaled $3.7 million, which missed the Zacks Consensus Estimate of $9 million. The reported figure increased 20.8% from the year-ago level.

Collaboration revenues in the third quarter were mostly earned due to the company’s association with bigwig Sanofi SNY.

Shares of KYMR have surged 81.3% year to date against the industry’s decline of 3.6%.

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Quarter in Detail

Research and development expenses amounted to $60.4 million, up 25.5% year over year. This increase was primarily due to increased expenses related to the investment in the company’s STAT6 degrader program, platform and discovery programs, as well as an increase in occupancy and related costs due to continued growth in the research and development organization.

General and administrative expenses totaled $15.5 million, up 9.4% year over year due to an increase in legal and professional service fees.

As of Sept. 30, 2024, Kymera had $911 million in cash, cash equivalents, and investments. In August, Kymera announced the closing of an upsized underwritten equity offering, resulting in net proceeds of approximately $247 million. Kymera expects its cash and cash equivalents to provide it with an anticipated cash runway into mid-2027.

Kymera expects that its existing cash will take the company beyond the phase II data for KT-474 and several clinical inflection points for its STAT6 and TYK2 programs.

KYMR's Pipeline Updates

In October, Kymera initiated dosing in the phase I healthy volunteer clinical trial evaluating single and multiple ascending doses of KT-621, a potent and selective oral degrader of STAT6.

The phase I study will evaluate the safety, tolerability, pharmacokinetics and pharmacodynamics of KT-621 compared to placebo. Kymera expects to report phase I data in the first half of 2025.

In July, Sanofi informed Kymera about its intention to rapidly expand the ongoing mid-stage studies on KT-474 (SAR444656) toward pivotal studies. KT-474 (SAR444656) is a first-in-class IRAK4 degrader in development for the treatment of immune-inflammatory diseases with significant patient needs, such as hidradenitis suppurativa (HS) and atopic dermatitis (AD).

Sanofi informed Kymera about the decision to expand the studies after a review of preliminary safety and efficacy data in these studies by an Independent Data Review Committee.

Sanofi collaborated with Kymera on the development of KT-474 outside the oncology and immuno-oncology fields.

The ZEN study for HS has been expanded from 99 to 156 patients. Earlier, the study included one active dose of KT-474 and placebo. It will now include an additional dose. The ZEN study is now expected to be completed in the first half of 2026.

The ADVANTA study on AD has been expanded from 115 to 200 patients. Earlier, this study included two active doses of KT-474 as well as placebo. The study will now include an additional dose. The ADVANTA study is now expected to be completed in the middle of 2026.

Kymera has also nominated a new TYK2 development candidate, KT-295, a potent, selective, once daily oral degrader, and prioritized this compound for clinical evaluation. The candidate is expected to be advanced into phase I testing in the first half of 2025.

Kymera has decided not to continue developing KT-333 (STAT3) and KT-253 (MDM2) beyond phase I based on an overall assessment of its clinical oncology programs and given progress across the immunology pipeline.

Zacks Rank and Stocks to Consider

Kymera currently carries a Zacks Rank #3 (Hold).

A couple of better-ranked stocks in the biotech sector are Amicus Therapeutics FOLD and Amarin AMRN. While FOLD sports a Zacks #1 Rank (Strong Buy) at present, AMRN carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

In the past 90 days, estimates for Amicus Therapeutics’ 2024 earnings per share (EPS) have moved up from 20 to 22 cents. EPS estimates for 2025 have remained stable at 53 cents during the same period. FOLD’s earnings beat estimates in three of the trailing four quarters and missed the mark once, delivering an average surprise of 23.96%.

In the past 90 days, the 2024 loss per share estimate for Amarin has narrowed 2 cents. AMRN’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 118.75%.

 

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