Kymera Therapeutics FY Conference Summary Company Overview - **Company**: Kymera Therapeutics (NasdaqGM:KYMR) - **Focus**: Development of oral degrader medicines targeting immune inflammatory diseases, particularly through the lead program KT-621, an oral STAT6 degrader Key Points and Arguments Investment Strategy and Pipeline - Kymera aims to build a commercial-stage global company, emphasizing the importance of developing multiple assets rather than relying on a single product [4][5] - The company is committed to advancing a pipeline that addresses difficult questions in immunology, with KT-621 as the top priority, followed by KT-579 and other preclinical programs [6] KT-621 Development Insights - The program targets STAT6 degradation, which is crucial for blocking IL-4 and IL-13 signaling, with preclinical studies showing that degrading STAT6 by 90% or more can match the efficacy of existing biologics like dupilumab [8][9] - Initial human studies demonstrated successful STAT6 degradation and safety, exceeding expectations in terms of biomarker impact compared to dupilumab [10][11] Clinical Study Design - Kymera is conducting a 28-day atopic dermatitis study without a placebo to expedite the development timeline while still gathering meaningful biomarker data [12][15] - The focus is on TH2 biomarkers, particularly TARC, which is expected to show significant changes in patients with atopic dermatitis [16][17] Comparison with Competitors - The only direct competitor identified is dupilumab, as both target IL-4 and IL-13 pathways [24] - Historical data indicates that the baseline severity of conditions in patients has shifted, affecting placebo response rates, but this does not materially impact the efficacy comparison between drugs [22][24] Future Directions and Business Development - Kymera plans to maintain control over KT-621's development through phase 2B studies, with sufficient cash reserves to fund operations into the second half of 2028 [29][30] - The company is open to partnerships if they believe it will maximize the asset's value, but the current focus remains on executing the clinical studies [30] Additional Important Insights - The company emphasizes the importance of understanding the translation of drug effects from preclinical to clinical settings, particularly regarding dose-response relationships [27][28] - Kymera's approach to drug development is characterized by a comprehensive assessment of both pharmacokinetics and biological impact, ensuring that clinical endpoints align with biomarker changes [18][19] This summary encapsulates the critical aspects of Kymera Therapeutics' current strategies, pipeline developments, and market positioning as discussed in the conference.

Core Viewpoint - Kymera Therapeutics, Inc. is a biopharmaceutical company focused on developing novel protein degradation therapies, facing competition in the biotech sector, and recently received an "Overweight" rating from Morgan Stanley with a price target increase to $73 [1][5]. Financial Performance - In Q3 2025, Kymera reported a quarterly loss of $0.90 per share, which was worse than the Zacks Consensus Estimate of a $0.71 loss, representing a 26.76% negative surprise [2][5]. - The company's revenue for the same quarter was $2.76 million, missing the Zacks Consensus Estimate by 89.6%, and down from $3.74 million in the same quarter the previous year [3][5]. - Over the past four quarters, Kymera has only exceeded consensus revenue estimates once [3]. Stock Performance - The current stock price of Kymera is $59.91, reflecting a slight increase of 0.32% or $0.19, with fluctuations between $55.66 and $61.30 during the day [4]. - Over the past year, the stock has reached a high of $63.96 and a low of $19.45, with a market capitalization of approximately $4.28 billion [4]. - Today's trading volume for KYMR is 816,036 shares [4].

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Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $2.8 million, entirely from collaboration with Gilead [24] - R&D expenses were $74.1 million, with adjusted cash R&D spend of $65.7 million, reflecting a 7% decrease from Q2 2025 [24] - G&A expenses totaled $17.3 million, with adjusted cash G&A spend of $9.9 million, a 3% decrease from Q2 2025 [24] - Cash balance at the end of September was $978.7 million, providing a runway into the second half of 2028 [25] Business Line Data and Key Metrics Changes - The company has made significant progress in its STAT6 program, with the first-in-class STAT6 degrader, KT-621, advancing through clinical trials [5][6] - The Broaden-2 phase 2b trial for atopic dermatitis has been initiated, evaluating three different doses of KT-621 [20] - The company is also advancing its IRF5 program, with plans to initiate a phase 1 study in early 2026 [22] Market Data and Key Metrics Changes - The company is targeting a significant unmet need in the oral immunology market, particularly for type 2 diseases like atopic dermatitis and asthma [8][16] - The penetration of advanced therapies like injectable biologics in moderate to severe patients is less than 10%, indicating a substantial market opportunity for oral therapies [56] Company Strategy and Development Direction - The company has shifted its R&D focus towards immunology, aiming to develop oral medicines with biologics-like activity [7] - The strategic partnership with Gilead aims to advance the CDK2 oncology molecular glue program, expanding the company's portfolio beyond immunology [6] - The company is committed to building a fully integrated commercial-stage company, with a focus on advancing its pipeline towards important milestones [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the execution of their strategy and the potential of their oral immunology pipeline to address significant patient needs [4][15] - The company anticipates strong interest in oral medicines with biologics-like activity, as evidenced by recent presentations and data [5][6] - Management highlighted the importance of continuous pathway blockade offered by KT-621 compared to injectable biologics, which may have less consistent effects [67] Other Important Information - The company has completed IND-enabling studies for KT-579 and plans to advance it into clinical trials in early 2026 [22] - The company expects to receive milestone payments from collaborations with Sanofi and Gilead as their partnered programs progress [25] Q&A Session Summary Question: Key characteristics that could enable KT-621 to show differential efficacy versus Dupilumab - Management highlighted that KT-621 has demonstrated comparable activity to Dupilumab in preclinical studies, blocking IL-4 and IL-13 signaling effectively [29][30] Question: Expectations regarding the doses in the Broaden study - Management explained that the selected doses aim to understand the translation of healthy volunteer data into patients, ensuring confidence in the phase 2b dose selection [32] Question: Concerns about baseline characteristics of enrolled patients - Management clarified that baseline levels of TARC and EASI scores are important factors, and they will share data when appropriate [39] Question: Powering for the phase 2b AD study - Management stated that the study is designed to be adequately powered to show desired effects relative to placebo, with careful consideration of patient enrollment [45] Question: Competitive landscape for KT-621 - Management emphasized that being first and best is crucial for commercial success, and they believe KT-621's profile will be difficult for competitors to surpass [79]

Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $2.8 million, entirely from collaboration with Gilead [27] - R&D expenses for the quarter were $74.1 million, with adjusted cash R&D spend decreasing by 7% compared to the previous quarter [27][28] - G&A expenses were $17.3 million, with adjusted cash G&A spend down by 3% from the previous quarter [28] - The company ended September with a cash balance of $978.7 million, providing a runway into 2028 [28] Business Line Data and Key Metrics Changes - The STAT6 program has shown significant progress, with a Phase Ib trial in atopic dermatitis (AD) patients completed and data expected in December [6][7] - The company initiated a Phase IIb trial for AD and plans to start a Phase IIb asthma trial in 2026 [7][26] - The IRAF5 program has completed IND enabling studies and is on track for a Phase I trial in early 2026 [8][26] Market Data and Key Metrics Changes - The company is focusing on oral therapies for type two diseases, addressing a significant unmet need in the market [10][12] - The penetration of advanced therapies like injectable biologics in moderate to severe patients is less than 10%, indicating a substantial market opportunity [63] Company Strategy and Development Direction - The company aims to build a global biopharmaceutical company with a strong focus on oral immunology [6][10] - A strategic shift towards immunology has been made, leveraging the potential of protein degradation to create oral drugs with biologics-like activity [10][11] - The partnership with Gilead is expected to drive forward the CDK2 oncology molecular glue program [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the execution of their pipeline and the potential for KT6:21 to provide a convenient oral treatment option for patients [18] - The company anticipates strong interest in their oral medicines, particularly in light of the limitations of current injectable therapies [22] - Management highlighted the importance of addressing the needs of patients who have limited access to advanced systemic therapies [63] Other Important Information - The company welcomed a new Chief Legal Officer, Brian Adams, who brings over two decades of experience in the life sciences sector [16] - The company is focused on maintaining high visibility within the medical and scientific communities through presentations and collaborations [7][8] Q&A Session Summary Question: Key characteristics that could enable KT6:21 to show differential efficacy versus dupilumab - Management highlighted that KT6:21 has demonstrated comparable activity to dupilumab in preclinical studies, with the potential for a similar or superior profile [35][36] Question: Expectations regarding the doses in the BROADEN study - The selected doses aim to understand the translation of healthy volunteer degradation profiles into patients, ensuring confidence in the Phase IIb dose selection [39][40] Question: Concerns about the baseline characteristics of enrolled patients - Management clarified that baseline TARC levels and EASI scores are critical factors, with expectations that the study population will reflect current trends in patient severity [44][48] Question: Powering considerations for the Phase IIb AD study - Management stated that the study is designed to be adequately powered to show the desired effect relative to placebo, with careful consideration of patient enrollment [54][56] Question: Plans for the asthma BRETH study - Management indicated that more details will be provided closer to the start of the study, with a focus on patient enrollment and endpoint considerations [70] Question: Competitive landscape for KT6:21 - Management emphasized the importance of being both first and best in the market, with confidence in the drug's efficacy and safety profile compared to competitors [92][94]

Core Insights - Kymera Therapeutics reported a quarterly loss of $0.9 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.71, marking a surprise of -26.76% [1] - The company's revenues for the quarter ended September 2025 were $2.76 million, missing the Zacks Consensus Estimate by 89.6%, and down from $3.74 million a year ago [2] - The stock has increased approximately 48.5% since the beginning of the year, outperforming the S&P 500's gain of 16.5% [3] Financial Performance - Over the last four quarters, Kymera Therapeutics has surpassed consensus EPS estimates only once [2] - The current consensus EPS estimate for the upcoming quarter is -$0.85 on revenues of $20.64 million, and for the current fiscal year, it is -$3.28 on revenues of $80.83 million [7] Industry Context - The Medical - Biomedical and Genetics industry, to which Kymera Therapeutics belongs, is currently ranked in the top 39% of over 250 Zacks industries, indicating a favorable outlook compared to lower-ranked industries [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Kymera's stock performance [5][6]

Kymera Therapeutics Third Quarter 2025 Quarterly Results Call November 4, 2025 Agenda Introduction Justine Koenigsberg, Vice President, Investor Relations Key Highlights and Business Update Nello Mainolfi, PhD, Founder, President and Chief Executive Officer Clinical Update Jared Gollob, MD, Chief Medical Officer Financial Review Bruce Jacobs, CFA, MBA, Chief Financial Officer Question and Answer Session Forward Looking Statements This presentation contains forward-looking statements within the meaning of th ...

Financial Performance - The company has incurred net losses of $223.9 million and $147.0 million for the years ended December 31, 2024 and 2023, respectively, with net losses of $82.2 million and $62.5 million for the three months ended September 30, 2025 and 2024, respectively [146]. - The company has an accumulated deficit of $979.0 million as of September 30, 2025 [146]. - Net loss for Q3 2025 was $82.2 million, compared to a net loss of $62.5 million in Q3 2024, reflecting a $19.7 million increase [178]. - Total operating expenses for Q3 2025 were $95.3 million, up from $75.9 million in Q3 2024, marking a $19.4 million increase [178]. - For the nine months ended September 30, 2025, collaboration revenue was $36.3 million, down from $39.7 million in the same period of 2024 [188]. - Other income, net decreased to $27.1 million for the nine months ended September 30, 2025, from $27.7 million in the same period of 2024, a decrease of approximately 2.2% [193]. - Cash used in operating activities was $166.1 million for the nine months ended September 30, 2025, compared to $132.7 million for the same period in 2024, representing an increase of approximately 25.2% [198]. - Cash used in investing activities was $126.7 million for the nine months ended September 30, 2025, down from $472.6 million in the same period of 2024, a decrease of approximately 73.3% [201]. - Net cash provided by financing activities was $285.5 million for the nine months ended September 30, 2025, compared to $606.1 million in the same period of 2024, a decrease of approximately 53.0% [203]. Cash and Funding - As of September 30, 2025, the company had cash, cash equivalents, and marketable securities of $978.7 million, expected to fund operations into the second half of 2028 [149]. - The company has received gross proceeds of $2.06 billion from various financing activities since its inception in 2015 [144]. - The company anticipates requiring additional funding to continue clinical development and commercialization efforts if regulatory approvals are received [207]. - The company has outstanding pre-funded warrants to purchase 15,815,253 shares of common stock, each with an exercise price of $0.0001 per share [211]. Research and Development - The company is developing KT-621 and KT-579 for immunology programs, with KT-621 recently completing dosing in the BroADen Phase 1b trial and initiating the BroADen2 Phase 2b clinical trial [142]. - The company has progressed five programs into clinical development and aims to advance at least one new molecular entity into clinical testing annually [140]. - Research and development expenses increased to $74.1 million in Q3 2025 from $60.4 million in Q3 2024, primarily due to an $8.3 million increase in costs related to the STAT6 program [182]. - Research and development expenses for the nine months ended September 30, 2025, totaled $232.7 million, an increase of $64.3 million from $168.4 million in 2024 [190]. - The company anticipates a substantial increase in research and development expenses in the near term due to planned clinical development activities [171]. - The company expects substantial increases in expenses related to ongoing activities, particularly in clinical development [205]. Collaborations and Agreements - The company entered into a collaboration agreement with Gilead Sciences, receiving a non-refundable upfront payment of $40 million and potential milestone payments totaling up to $665 million [155]. - Under the Sanofi Agreement, the company received an upfront payment of $150 million and is eligible for development milestone payments of up to $1.48 billion and commercial milestone payments of up to $700 million [159]. - Collaboration revenue for Q3 2025 was $2.8 million, down from $3.7 million in Q3 2024, all attributable to the agreement with Gilead [181]. Market and Industry Context - Approximately 160 million patients in the U.S., Europe, and Japan are diagnosed with immune-inflammatory diseases, with nearly half remaining untreated [141]. - The company has not yet generated any revenue from product sales and does not expect to do so for several years [195]. - The company is exposed to market risks related to interest rates and foreign currency exchange rates, with no significant liabilities in foreign currencies as of September 30, 2025 [214][215]. Expenses - General and administrative expenses rose to $17.3 million in Q3 2025 from $15.5 million in Q3 2024, driven by higher legal and professional service fees [183]. - General and administrative expenses for the nine months ended September 30, 2025, were $51.3 million, compared to $47.2 million in 2024, reflecting a $4.1 million increase [191]. - Impairment of long-lived assets was $3.9 million for Q3 2025, compared to $0 for Q3 2024, due to worsening market conditions [185].

Financial Performance - Kymera Therapeutics reported collaboration revenues of $2.8 million for Q3 2025, down from $3.7 million in Q3 2024, all attributable to collaboration with Gilead Sciences[8] - The net loss for Q3 2025 was $82.2 million, compared to a net loss of $62.5 million in Q3 2024[12] - Net loss attributable to common stockholders for Q3 2025 was $82,175,000, compared to a net loss of $62,487,000 in Q3 2024, representing a 31.5% increase in losses[19] - Net loss per share attributable to common stockholders was $0.94 for Q3 2025, compared to $0.82 for Q3 2024[19] - Total operating expenses for Q3 2025 were $95,285,000, an increase of 25.5% from $75,865,000 in Q3 2024[19] - For the nine months ended September 30, 2025, total operating expenses were $287,844,000, up 30.5% from $220,558,000 in the same period of 2024[19] - Total other income for Q3 2025 was $10,346,000, an increase from $9,637,000 in Q3 2024[19] Research and Development - Research and development expenses increased to $74.1 million in Q3 2025 from $60.4 million in Q3 2024, primarily due to investments in the STAT6 program and growth in the R&D organization[10] - The KT-621 BroADen Phase 1b trial in atopic dermatitis has completed enrollment and dosing, with data expected in December 2025[1] - The KT-621 BROADEN2 Phase 2b trial in atopic dermatitis has been initiated, with topline data expected by mid-2027, involving approximately 200 patients[4] - The KT-579 IND-enabling studies have been completed, with a Phase 1 clinical trial expected to start in early 2026[1] - The company is on track to initiate the BREADTH Phase 2b trial in asthma patients in Q1 2026, which is expected to accelerate KT-621 development[4] Expenses - General and administrative expenses rose to $17.3 million in Q3 2025 compared to $15.5 million in Q3 2024, driven by increased legal and professional service fees[11] - General and administrative expenses rose to $17,336,000 in Q3 2025, compared to $15,455,000 in Q3 2024, reflecting a 12.1% increase[19] - Impairment of long-lived assets was recorded at $3,855,000 in Q3 2025, while there was no impairment in Q3 2024[19] Leadership Changes - Kymera appointed Brian Adams as Chief Legal Officer and Corporate Secretary in September 2025 to lead legal and corporate governance functions[7] Cash Position - As of September 30, 2025, Kymera had $978.7 million in cash and cash equivalents, providing a runway into the second half of 2028[12] Stock Information - The weighted average common stocks outstanding for Q3 2025 was 87,300,286, compared to 76,125,975 in Q3 2024[19]

Core Insights - Kymera Therapeutics has made significant progress in its clinical trials, particularly with KT-621, which is the first STAT6-directed agent for atopic dermatitis (AD) patients, with data expected in December 2025 [1][2][3] - The company is well-capitalized with $979 million in cash as of September 30, 2025, providing a runway into the second half of 2028 [1][14] - Upcoming milestones include the initiation of the KT-621 BROADEN2 Phase 2b trial in AD and the BREADTH Phase 2b trial in asthma, both expected to accelerate development across multiple indications [2][9] Clinical Development Updates - Enrollment and dosing have been completed in the KT-621 BroADen Phase 1b trial for moderate to severe AD, with results anticipated in December 2025 [1][3] - The KT-621 BROADEN2 Phase 2b trial has been initiated, evaluating three doses in approximately 200 patients over 16 weeks, with data expected by mid-2027 [3][4] - KT-579, an oral degrader of IRF5, has completed IND-enabling studies, with a Phase 1 clinical trial expected to start in early 2026 [1][10] Financial Performance - Collaboration revenues for Q3 2025 were $2.8 million, down from $3.7 million in Q3 2024, primarily from the collaboration with Gilead Sciences [11] - Research and development expenses increased to $74.1 million in Q3 2025 from $60.4 million in Q3 2024, driven by investments in the STAT6 program [12] - The net loss for Q3 2025 was $82.2 million, compared to $62.5 million in Q3 2024, with cash and cash equivalents totaling $978.7 million as of September 30, 2025 [14][22]