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Kymera Therapeutics(KYMR) - 2020 Q3 - Quarterly Report
KYMRKymera Therapeutics(KYMR)2020-11-05 12:31

Financial Performance - The company has incurred net losses of 21.5millionand21.5 million and 41.2 million for the years ended December 31, 2018 and 2019, respectively, and 32.9millionand32.9 million and 29.7 million for the nine months ended September 30, 2020 and 2019, respectively [151]. - The company has an accumulated deficit of 116.1millionasofSeptember30,2020[151].−ThenetlossforthethreemonthsendedSeptember30,2020,was116.1 million as of September 30, 2020 [151]. - The net loss for the three months ended September 30, 2020, was 8.0 million, an improvement from a net loss of 11.4millioninthesameperiodof2019,reflectingachangeof11.4 million in the same period of 2019, reflecting a change of 3.4 million [179]. - The company has not generated any revenue from product sales and does not expect to do so in the foreseeable future [162]. Cash and Financing Activities - As of September 30, 2020, the company had cash, cash equivalents, and marketable securities of 481.3million,whichisexpectedtofundoperationsinto2025[157].−Thecompanyhasreceivedgrossproceedsof481.3 million, which is expected to fund operations into 2025 [157]. - The company has received gross proceeds of 617.8 million from various financing activities, including its initial public offering and collaborations with Vertex and Sanofi [150]. - Cash provided by operating activities during the nine months ended September 30, 2020, was 108.2million,primarilydueto108.2 million, primarily due to 150.0 million received from a collaboration agreement with Sanofi [192]. - Net cash provided by financing activities during the nine months ended September 30, 2020, was 289.0million,mainlyfromtheinitialpublicofferingandprivateplacements[196].−Theexistingcash,cashequivalents,andmarketablesecuritiesareexpectedtofundoperatingexpensesandcapitalexpendituresinto2025,butadditionalfundingwillberequiredforclinicaldevelopmentandcommercializationefforts[201].−Thecompanymayneedtofinancecashneedsthroughequityofferings,debtfinancings,collaborations,andstrategicalliances,whichcoulddiluteexistingstockholders′ownership[203].Expenses−TotaloperatingexpensesforthethreemonthsendedSeptember30,2020,were289.0 million, mainly from the initial public offering and private placements [196]. - The existing cash, cash equivalents, and marketable securities are expected to fund operating expenses and capital expenditures into 2025, but additional funding will be required for clinical development and commercialization efforts [201]. - The company may need to finance cash needs through equity offerings, debt financings, collaborations, and strategic alliances, which could dilute existing stockholders' ownership [203]. Expenses - Total operating expenses for the three months ended September 30, 2020, were 22.6 million, up from 12.8millionin2019,reflectinganincreaseof12.8 million in 2019, reflecting an increase of 9.8 million [179]. - Research and development expenses for the nine months ended September 30, 2020, were 41.7million,comparedto41.7 million, compared to 26.1 million for the same period in 2019, marking an increase of 15.6million[186].−GeneralandadministrativeexpensesfortheninemonthsendedSeptember30,2020,were15.6 million [186]. - General and administrative expenses for the nine months ended September 30, 2020, were 13.1 million, up from 5.5millionin2019,indicatinganincreaseof5.5 million in 2019, indicating an increase of 7.6 million [187]. - The company expects significant commercialization expenses if marketing approval is obtained for any lead product candidates [154]. - The company anticipates incurring significant commercialization expenses related to product manufacturing, sales, marketing, and distribution if regulatory approval is received for its product candidates [201]. Collaborations and Agreements - The collaboration agreement with Vertex includes a non-refundable upfront payment of 50millionandpotentialmilestonepaymentsofupto50 million and potential milestone payments of up to 170 million per target [164]. - Under the Sanofi Agreement, the company will receive an upfront payment of 150millionandiseligibleforupto150 million and is eligible for up to 1.48 billion in development milestone payments related to the IRAK4 program [168]. - Collaboration revenues for the nine months ended September 30, 2020, were 21.2million,withcontributionsof21.2 million, with contributions of 10.9 million from Vertex and 10.3millionfromSanofi[185].MarketandEconomicConditions−MarketvolatilityfromtheCOVID−19pandemiccouldadverselyimpactthecompany′sabilitytoaccesscapitalwhenneeded[204].−Inflationhasnothadamaterialeffectonthecompany′sbusiness,financialcondition,orresultsofoperationsduringtheperiodspresented[214].−Thecompanyhasnooff−balancesheetarrangementsduringtheperiodspresented[210].InvestmentStrategy−Thecompanyhasnotenteredintoinvestmentsfortradingorspeculativepurposes,focusinginsteadoncapitalpreservationwithshort−termmaturities[212].−Thecompanyhascashandcashequivalentsandmarketablesecuritiesof10.3 million from Sanofi [185]. Market and Economic Conditions - Market volatility from the COVID-19 pandemic could adversely impact the company's ability to access capital when needed [204]. - Inflation has not had a material effect on the company's business, financial condition, or results of operations during the periods presented [214]. - The company has no off-balance sheet arrangements during the periods presented [210]. Investment Strategy - The company has not entered into investments for trading or speculative purposes, focusing instead on capital preservation with short-term maturities [212]. - The company has cash and cash equivalents and marketable securities of 481.3 million as of September 30, 2020, with minimal exposure to foreign currency risk [212]. Product Development - The Pegasus platform has been utilized to design novel protein degraders focused on immunology-inflammation and oncology [149]. - The company plans to submit an Investigational New Drug Application for KT-474 in the first half of 2021 [149].