PART I. FINANCIAL INFORMATION The financial information section details the company's unaudited financial statements, management's analysis of operations and liquidity, market risk exposures, and internal controls Item 1. Financial Statements (Unaudited) The unaudited condensed consolidated financial statements for the six months ended June 30, 2025, show a significant increase in net loss to $142.2 million from $90.6 million in the prior year period, driven by higher research and development expenses. The balance sheet strengthened, with cash, cash equivalents, and marketable securities totaling $963.1 million. The company's financial position was bolstered by a follow-on public offering in June 2025 and a new collaboration agreement with Gilead Condensed Consolidated Balance Sheets This section presents the company's financial position, detailing assets, liabilities, and stockholders' equity as of June 30, 2025, and December 31, 2024 Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Assets | | | | Cash and cash equivalents | $335,816 | $120,256 | | Marketable securities (current & non-current) | $627,258 | $730,647 | | Total current assets | $728,327 | $510,268 | | Total assets | $1,131,068 | $978,035 | | Liabilities & Stockholders' Equity | | | | Total current liabilities | $87,540 | $67,767 | | Total liabilities | $159,588 | $142,416 | | Accumulated deficit | $(896,805) | $(754,610) | | Total stockholders' equity | $971,480 | $835,619 | - Cash, cash equivalents, and marketable securities totaled $963.1 million as of June 30, 2025, which the company believes is sufficient to fund operations and capital expenditures for at least the next twelve months31 Condensed Consolidated Statements of Operations and Comprehensive Loss This section details the company's revenues, expenses, and net loss for the three and six months ended June 30, 2025, and 2024 Statement of Operations Summary (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Collaboration revenue | $11,476 | $25,650 | $33,576 | $35,937 | | Research and development | $78,388 | $59,202 | $158,643 | $108,021 | | General and administrative | $17,645 | $17,373 | $33,916 | $31,747 | | Loss from operations | $(84,557) | $(50,925) | $(158,983) | $(108,756) | | Net loss | $(76,614) | $(42,062) | $(142,195) | $(90,619) | | Net loss per share | $(0.95) | $(0.58) | $(1.77) | $(1.26) | Condensed Consolidated Statements of Cash Flows This section outlines the cash inflows and outflows from operating, investing, and financing activities for the six months ended June 30, 2025, and 2024 Cash Flow Summary for the Six Months Ended June 30 (in thousands) | Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(139,034) | $(82,527) | | Net cash provided by (used in) investing activities | $108,636 | $(314,965) | | Net cash provided by financing activities | $245,984 | $355,168 | | Net increase (decrease) in cash | $215,586 | $(42,324) | - Financing activities in H1 2025 were primarily driven by $237.3 million in net proceeds from the June 2025 public offering. H1 2024 financing included $301.4 million from a January 2024 offering and $48.7 million from at-the-market sales27 Notes to Unaudited Condensed Consolidated Financial Statements The notes detail significant accounting policies, financing activities, and collaboration agreements. Key events include a new collaboration with Gilead in June 2025 providing a $40 million upfront payment, and an update on the Sanofi collaboration where Sanofi will advance a next-generation IRAK4 degrader (KT-485) and stop development of KT-474. The company also completed a follow-on public offering in June 2025, raising approximately $250.8 million in gross proceeds before the underwriters' option exercise - In June 2025, the company entered into an exclusive option and license agreement with Gilead to develop CDK2 degraders, receiving a $40.0 million non-refundable upfront payment. The company is eligible for an additional $45.0 million upon option exercise and up to $665.0 million in milestones, plus tiered royalties5255 - In June 2025, Sanofi exercised its full participation election to advance the next-generation IRAK4 degrader, KT-485/SAR447971, into clinical testing and intends to stop the development of KT-474. Kymera remains eligible for up to $975 million in future milestones71 - On June 30, 2025, the company completed a follow-on public offering, raising aggregate gross proceeds of approximately $250.8 million before deducting expenses. The underwriters' full option exercise in July 2025 added another $37.6 million in gross proceeds35138 - In February 2024, the company occupied its new facility and exited its 2019 lease, resulting in an impairment charge of $4.9 million in the first quarter of 2024100 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses the company's focus on targeted protein degradation (TPD) in immunology, highlighting progress in its STAT6, IRF5, and IRAK4 programs. The analysis of financial results shows a significant year-over-year increase in R&D expenses, primarily due to advancing the STAT6 program. Despite a wider net loss, the company reports a strong liquidity position with a cash runway extending into the second half of 2028, supported by recent financing and collaboration payments Overview This section provides an overview of the company's strategic focus on targeted protein degradation in immunology and its financial position - The company is a clinical-stage biopharmaceutical firm focused on targeted protein degradation (TPD), primarily for high-value targets in immunology, including STAT6, IRF5, and IRAK4144146 - In May 2025, the company made a strategic decision to not advance its TYK2 degrader, KT-295, into clinical development to reallocate resources and extend its cash runway146 - As of June 30, 2025, the company had $963.1 million in cash, cash equivalents, and marketable securities. Management believes this, plus subsequent proceeds, is sufficient to fund operations into the second half of 2028153210 Results of Operations This section analyzes the company's financial performance, detailing changes in collaboration revenue, research and development expenses, and net loss for the reported periods Comparison of Results for the Three Months Ended June 30 (in thousands) | Account | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Collaboration revenue | $11,476 | $25,650 | $(14,174) | | Research and development | $78,388 | $59,202 | $19,186 | | Net loss | $(76,614) | $(42,062) | $(34,552) | Comparison of Results for the Six Months Ended June 30 (in thousands) | Account | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Collaboration revenue | $33,576 | $35,937 | $(2,361) | | Research and development | $158,643 | $108,021 | $50,622 | | Net loss | $(142,195) | $(90,619) | $(51,576) | - The $50.6 million increase in R&D expenses for H1 2025 was primarily driven by a $27.2 million increase in costs for the STAT6 program, a $14.8 million increase in personnel and internal costs, and increased spending on the TYK2 and discovery programs194 Liquidity and Capital Resources This section assesses the company's ability to meet its short-term and long-term financial obligations, focusing on cash position and cash flow activities - The company had cash, cash equivalents, and marketable securities of $963.1 million as of June 30, 2025198 - Net cash used in operating activities increased to $139.0 million for the first six months of 2025, compared to $82.5 million for the same period in 2024, primarily due to a higher net loss201202 - Net cash provided by financing activities was $246.0 million for the first six months of 2025, mainly from a public offering, compared to $355.2 million in the prior year period which included proceeds from an offering and at-the-market sales201206207 Item 3. Quantitative and Qualitative Disclosures About Market Risk The company's primary market risk exposure is to interest rate changes affecting its cash equivalents and marketable securities, though the impact of a 10% change is not expected to be material. It also has minor exposure to foreign currency exchange rates and notes the potential impact of inflation on operating costs, which is partially offset by higher interest income - The company's main market risk is interest rate sensitivity on its cash and investments, but due to the short-term nature of its portfolio, a 10% change in rates is not expected to have a material impact218 - The company is exposed to inflation, which increases labor, vendor, and clinical trial costs, but notes that higher interest rates have also resulted in higher interest income220 Item 4. Controls and Procedures Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures as of June 30, 2025, and concluded they were effective at a reasonable assurance level. There were no material changes in internal control over financial reporting during the quarter - Management concluded that the company's disclosure controls and procedures were effective as of June 30, 2025222 - No material changes to the company's internal control over financial reporting occurred during the quarter223 PART II. OTHER INFORMATION This section covers legal proceedings, comprehensive risk factors, unregistered equity sales, other significant information, and a list of exhibits filed with the report Item 1. Legal Proceedings The company is not currently a party to any legal proceedings that are expected to have a material adverse effect on its business - As of the report date, the company is not involved in any litigation or legal proceedings that management believes would likely have a material adverse effect on the business226 Item 1A. Risk Factors The company outlines numerous risks to its business, emphasizing its clinical-stage status, history of significant operating losses, and dependence on raising additional capital. Key risks include the unproven nature of its targeted protein degradation (TPD) approach, potential for clinical trial delays or failures, reliance on third-party collaborators and manufacturers, and the need to obtain and defend intellectual property. It also highlights risks related to competition, commercialization, regulatory approval, and market volatility - The company is a clinical-stage entity with a history of significant operating losses ($896.8 million accumulated deficit as of June 30, 2025) and expects to incur continued losses for the foreseeable future228229 - The company's drug discovery approach, targeted protein degradation (TPD), is novel and unproven, making it difficult to predict the time, cost, and likelihood of successfully developing any products247 - The business is heavily dependent on third parties for conducting clinical trials (CROs), manufacturing products (CMOs), and advancing certain programs through collaborations (e.g., Sanofi and Gilead)345356 - The company faces substantial competition from other firms developing protein degraders and traditional therapies, many of which have greater financial and technical resources336337338 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds The company reports no sales of unregistered equity securities during the quarter ended June 30, 2025 - There were no sales of unregistered securities during the three months ended June 30, 2025466 Item 5. Other Information The company discloses that Jared Gollob, Chief Medical Officer, adopted a Rule 10b5-1 trading plan on June 2, 2025, for the potential sale of up to 111,997 shares of common stock through December 31, 2026 - On June 2, 2025, Chief Medical Officer Jared Gollob adopted a Rule 10b5-1 trading plan covering the exercise of vested stock options and sale of up to 111,997 shares of common stock468 Item 6. Exhibits This section lists the exhibits filed with the Form 10-Q, including the form of Pre-Funded Warrant, a Registration Rights Agreement, a letter agreement with Genzyme, the amended director compensation policy, and officer certifications
Kymera Therapeutics(KYMR) - 2025 Q2 - Quarterly Report