KYMR - Kymera Therapeutics: Solid Progress And No Change To My 'Buy' Rating

2024-07-16 04:58:20 ET

Summary

• Kymera Therapeutics is a protein degradation specialist drug developer with promising Phase 1 and 2 stage protein degraders targeting various diseases.
• A partnership with Sanofi includes potential milestone payments of up to $1.48 billion for IRAK4 program, showing strong financial backing and support.
• I am expecting to see Positive data from Phase 2 studies of KT-474 expected in 1H25, with potential for significant share price increase and future M&A opportunities.
• Meanwhile, two more autoimmune drug candidates and two cancer candidates reduce reliance on a single asset - look out for Phase 1 oncology data before the end of the year.
• Kymera's stock price will have ups and downs and not every data readout will be positive - but Sanofi's presence alongside the company is a major bonus which could lead to M&A down the line.

Investment Thesis

After first covering the protein degradation specialist drug developer Kymera Therapeutics ( KYMR ) for Seeking Alpha in early 2021, I left it over three years before covering the company again , however on this occasion I am updating again after three months, as there has been some intriguing news flow to digest recently.

For a full discussion of Kymera's history and explanation of the "protein degrader" drug class and its unique mechanism of action, I'd refer readers to my previous note, although I will say the best description I have come across runs as follows:

These bifunctional molecules force a handshake between the ubiquitin and the protein, sending it to the trash. The job done, they move on to repeat the process, quickly depleting levels of the unwanted protein.

For further details see: