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Kymera (KYMR) Q1 Loss Narrower Than Expected, Pipeline in Focus
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Kymera Therapeutics, Inc. (KYMR - Free Report) reported a loss of 69 cents per share in the first quarter of 2024, narrower than the Zacks Consensus Estimate of a loss of 73 cents. In the year-ago quarter, Kymera reported a loss of 70 cents per share.
Collaboration revenues totaled $10.3 million, which missed the Zacks Consensus Estimate of $12 million. Revenues increased 8.7% from the year-ago quarter’s level.
Collaboration revenues in the first quarter were attributable to the company’s association with bigwig Sanofi (SNY - Free Report) .
Shares of KYMR have surged 42.6% year to date against the industry’s decline of 7.6%.
Image Source: Zacks Investment Research
Quarter in Detail
Research and development expenses amounted to $48.8 million, up 15.6% year over year. This was due to increased expenses related to the investment in the company’s proprietary targeted protein degradation platform and discovery programs, as well as a rise in occupancy and related costs due to continued growth in the research and development organization.
General and administrative expenses totaled $14.4 million, up 14.4% year over year due to an increase in legal and professional service fees.
In January 2024, KYMR announced the closing of its upsized underwritten equity offering, resulting in net proceeds of approximately $301 million.
As of Mar 31, 2024, Kymera had approximately $745 million in cash, cash equivalents, and investments. The current cash balance is expected to provide a runway into the first half of 2027.
Management expects the cash balance to provide the company with sufficient leeway beyond the phase II data for KT-474, as well as additional proof-of-concept data for KT-253 and KT-333, and several clinical inflection points for its STAT6 and TYK2 programs.
Kymera Therapeutics, Inc. Price, Consensus and EPS Surprise
Enrollment is underway in the two randomized, placebo-controlled phase II studies evaluating KT-474 for the treatment of hidradenitis suppurativa and atopic dermatitis. These studies are being conducted by Sanofi. Top-line data is expected to be reported in the first half of 2025.
Kymera’s first-in-class oral STAT6 degrader, KT-621, is a once-daily oral STAT6 degrader with the potential to deliver dupilumab-like activity in multiple diseases, including atopic dermatitis, asthma, and chronic obstructive pulmonary disorder, among others. Kymera plans to initiate a phase I study on KT-621 in the second half of 2024 with results expected in the first half of 2025.
Another pipeline candidate, KT-294, is a once-daily, oral TYK2 degrader with the potential to deliver biologics-like activity in conditions such as inflammatory bowel disease, psoriasis, psoriatic arthritis, and lupus, among others. Kymera expects to initiate an early-stage study on KT-294 in the first half of 2025 with results expected in the second half.
The dose escalation portion of the phase Ia study on KT-253 for the treatment of liquid and solid tumors is ongoing.
Image: Bigstock
Kymera (KYMR) Q1 Loss Narrower Than Expected, Pipeline in Focus
Kymera Therapeutics, Inc. (KYMR - Free Report) reported a loss of 69 cents per share in the first quarter of 2024, narrower than the Zacks Consensus Estimate of a loss of 73 cents. In the year-ago quarter, Kymera reported a loss of 70 cents per share.
Collaboration revenues totaled $10.3 million, which missed the Zacks Consensus Estimate of $12 million. Revenues increased 8.7% from the year-ago quarter’s level.
Collaboration revenues in the first quarter were attributable to the company’s association with bigwig Sanofi (SNY - Free Report) .
Shares of KYMR have surged 42.6% year to date against the industry’s decline of 7.6%.
Image Source: Zacks Investment Research
Quarter in Detail
Research and development expenses amounted to $48.8 million, up 15.6% year over year. This was due to increased expenses related to the investment in the company’s proprietary targeted protein degradation platform and discovery programs, as well as a rise in occupancy and related costs due to continued growth in the research and development organization.
General and administrative expenses totaled $14.4 million, up 14.4% year over year due to an increase in legal and professional service fees.
In January 2024, KYMR announced the closing of its upsized underwritten equity offering, resulting in net proceeds of approximately $301 million.
As of Mar 31, 2024, Kymera had approximately $745 million in cash, cash equivalents, and investments. The current cash balance is expected to provide a runway into the first half of 2027.
Management expects the cash balance to provide the company with sufficient leeway beyond the phase II data for KT-474, as well as additional proof-of-concept data for KT-253 and KT-333, and several clinical inflection points for its STAT6 and TYK2 programs.
Kymera Therapeutics, Inc. Price, Consensus and EPS Surprise
Kymera Therapeutics, Inc. price-consensus-eps-surprise-chart | Kymera Therapeutics, Inc. Quote
Key Pipeline Updates
Enrollment is underway in the two randomized, placebo-controlled phase II studies evaluating KT-474 for the treatment of hidradenitis suppurativa and atopic dermatitis. These studies are being conducted by Sanofi. Top-line data is expected to be reported in the first half of 2025.
Kymera’s first-in-class oral STAT6 degrader, KT-621, is a once-daily oral STAT6 degrader with the potential to deliver dupilumab-like activity in multiple diseases, including atopic dermatitis, asthma, and chronic obstructive pulmonary disorder, among others. Kymera plans to initiate a phase I study on KT-621 in the second half of 2024 with results expected in the first half of 2025.
Another pipeline candidate, KT-294, is a once-daily, oral TYK2 degrader with the potential to deliver biologics-like activity in conditions such as inflammatory bowel disease, psoriasis, psoriatic arthritis, and lupus, among others. Kymera expects to initiate an early-stage study on KT-294 in the first half of 2025 with results expected in the second half.
The dose escalation portion of the phase Ia study on KT-253 for the treatment of liquid and solid tumors is ongoing.
Zacks Rank and Other Stocks to Consider
Kymera currently carries a Zacks Rank #2 (Buy).
Some better-ranked stocks in the biotech sector are ANI Pharmaceuticals, Inc. (ANIP - Free Report) and Amarin (AMRN - Free Report) . While ANIP sports a Zacks Rank #1 (Strong Buy) at present, AMRN carries the same rank as Kymera. You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 60 days, estimates for ANI Pharmaceuticals’ 2024 EPS have improved from $4.25 to $4.44. Shares of ANIP have jumped 21.7% year to date.
ANIP’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 109.06%.
In the past 90 days, the 2024 loss per share estimate for Amarin has narrowed by two cents. Shares of the company have risen 5.5% year to date.
AMRN’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 118.75%.