A month has gone by since the last earnings report for Kymera Therapeutics, Inc. (KYMR Quick QuoteKYMR - Free Report) . Shares have added about 10.9% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Kymera Therapeutics due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.

Kymera Q2 Loss Narrower Than Expected, Pipeline in Focus

Kymera Therapeutics reported a loss of 58 cents per share in the second quarter of 2024, narrower than the Zacks Consensus Estimate of a loss of 69 cents. In the year-ago quarter, Kymera reported a loss of 67 cents per share.
Loss narrowed in the quarter due to higher revenues.

Collaboration revenues totaled $25.6 million, which beat the Zacks Consensus Estimate of $12 million. The reported figure increased 55.3% from the year-ago quarter’s level.

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

Quarter in Detail

Research and development expenses amounted to $59.2 million, up 29.3% 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 $17.4 million, up 22.9% year over year due to an increase in legal and professional service fees.

As of Jun 30, 2024, Kymera had $702.4 million in cash, cash equivalents and investments. The company expects its cash and cash equivalents 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.

Key Pipeline Updates

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 of the oncology and immuno-oncology fields.

Kymera intends to initiate a phase I study on KT-621 in the second half of 2024 and expects data from the phase I study 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.

The company has already completed IND-enabling studies on the candidate. No adverse safety finding was detected in any dose of the GLP toxicology studies.

In June, Kymera shared new clinical data from its ongoing phase I study KT-253. Data showed strong proof of mechanism as well as antitumor activity in multiple tumor types shown to be sensitive in preclinical models. Responses were observed in one of two evaluable patients with merkel cell carcinoma and two of two patients with post-myeloproliferative neoplasm acute myeloid leukemia (post-MPN AML) without the hematological toxicity typically seen with traditional small molecule inhibitors.

Dose escalation in the phase Ia study is ongoing in both Arm A (solid tumors and lymphomas) and Arm B (high grade myeloid malignancies). KYMR expects to complete enrollment in the second half of 2024.

Kymera announced new data from its ongoing phase I study on KT-333, a first-in-class, potent, highly selective and heterobifunctional small molecule degrader of STAT3.

The candidate demonstrated antitumor responses in hematological malignancies, including relapsed/refractory classic Hodgkin’s lymphoma (cHL), cutaneous T-cell lymphoma and NK-cell lymphoma, at doses that were well-tolerated.  Complete responses in two patients with cHL were observed.

The phase Ia study is ongoing with enrollment focused on Hodgkin’s lymphoma based on encouraging clinical responses. The company is evaluating opportunities for future expansion into solid tumors, in combination with immune checkpoint inhibitors and other targeted therapies. The company expects to complete enrollment of the phase Ia trial and share data in the second half of 2024.




 

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates have trended downward during the past month.

The consensus estimate has shifted -11.79% due to these changes.

VGM Scores

At this time, Kymera Therapeutics has an average Growth Score of C, however its Momentum Score is doing a bit better with a B. However, the stock was allocated a grade of F on the value side, putting it in the lowest quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Kymera Therapeutics has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Kymera Therapeutics belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Denali Therapeutics Inc. (DNLI Quick QuoteDNLI - Free Report) , has gained 13.3% over the past month. More than a month has passed since the company reported results for the quarter ended June 2024.

Denali Therapeutics reported revenues of $0 million in the last reported quarter, representing a year-over-year change of -100%. EPS of -$0.59 for the same period compares with $1.30 a year ago.

Denali Therapeutics is expected to post a loss of $0.61 per share for the current quarter, representing a year-over-year change of +15.3%. Over the last 30 days, the Zacks Consensus Estimate has changed +1.3%.

Denali Therapeutics has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of F.