Kymera Therapeutics(KYMR) - 2025 Q2 - Quarterly Results

Kymera Therapeutics Q2 2025 Business and Financial Highlights The company reports significant pipeline advancements, a new strategic partnership, and a strengthened financial position despite a quarterly net loss Business Highlights and Pipeline Update The company advanced its immunology pipeline with positive KT-621 data, progressed KT-579, and secured a strategic partnership and new funding - The company is well-capitalized with approximately $1 billion in cash as of July 31, 2025, extending its financial runway into the second half of 2028[1][2][8] - Entered a strategic partnership with Gilead to develop novel oral molecular glue CDK2 degraders, with potential payments up to $750 million[1][9] - Sanofi has prioritized Kymera's second-generation IRAK4 degrader, KT-485, for advancement into Phase 1 clinical studies in 2026[2][9] STAT6 Degrader Program (KT-621) The oral STAT6 degrader KT-621 demonstrated a positive Phase 1 profile, with plans to initiate Phase 2b trials in late 2025 and early 2026 - Phase 1 healthy volunteer data surpassed the target product profile, demonstrating rapid, deep, and prolonged STAT6 degradation, with complete degradation achieved in both blood and skin at doses ≥50 mg[1][3] - KT-621 showed an impact on Th2 biomarkers comparable or superior to dupilumab, with median TARC reduction up to 37% and median Eotaxin-3 reduction up to 63%[3] Upcoming Milestones for KT-621 | Milestone | Indication | Expected Timing | | :--- | :--- | :--- | | Phase 1b (BroADen) Data | Atopic Dermatitis (AD) | 4Q 2025 | | Phase 2b Trial Initiation | Atopic Dermatitis (AD) | 4Q 2025 | | Phase 2b Trial Initiation | Asthma | 1Q 2026 | IRF5 Degrader Program (KT-579) The first-in-class oral IRF5 degrader KT-579 is advancing through IND-enabling studies, with a Phase 1 trial anticipated in early 2026 - KT-579 is a first-in-class oral degrader of IRF5, a genetically validated transcription factor with potential utility in diseases such as lupus, Sjögren's, inflammatory bowel disease (IBD), and rheumatoid arthritis (RA)[4] - The program is currently in IND-enabling studies, with a Phase 1 clinical trial anticipated to commence in early 2026[1][6] - New preclinical data from lupus and RA animal models will be presented at the American College of Rheumatology (ACR) Annual Meeting in October 2025[6] Collaboration and Corporate Updates The company strengthened its financial position through a new Gilead partnership, a Sanofi milestone payment, and a successful equity offering - Entered an exclusive option and license agreement with Gilead for a CDK2 molecular glue degrader program, with Kymera eligible for up to $750 million in total payments plus tiered royalties[9] - Sanofi prioritized the second-generation IRAK4 degrader KT-485 for Phase 1 testing, triggering a $20 million milestone payment to Kymera in Q2 2025, while the first-generation degrader, KT-474, will not be advanced[9] - Completed an underwritten equity offering with total gross proceeds of approximately $288 million, strengthening the company's balance sheet[8] Second Quarter 2025 Financial Results The company reported lower Q2 2025 revenues and a wider net loss driven by increased R&D expenses, while maintaining a strong cash position Q2 2025 Financial Highlights (vs. Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Collaboration Revenues | $11.5M | $25.7M | -55.3% | | R&D Expenses | $78.4M | $59.2M | +32.4% | | G&A Expenses | $17.6M | $17.4M | +1.1% | | Net Loss | ($76.6M) | ($42.1M) | +81.9% | | Net Loss Per Share | ($0.95) | ($0.58) | +63.8% | - The increase in R&D expenses was primarily driven by investments in the STAT6 program, platform and discovery programs, and organizational growth[11] - As of June 30, 2025, the company had $963.1 million in cash, cash equivalents, and investments, a balance that grew to approximately $1 billion by July 31, 2025, after recent financing activities[14] Financial Statements This section presents the unaudited consolidated Balance Sheet and Statement of Operations for the period ended June 30, 2025 Consolidated Balance Sheets The balance sheet shows total assets grew to $1.13 billion as of June 30, 2025, primarily due to an increase in cash and marketable securities Consolidated Balance Sheets (in thousands) | Account | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Assets | | | | Cash, cash equivalents and marketable securities | $963,074 | $850,903 | | Total assets | $1,131,068 | $978,035 | | Liabilities and Stockholders' Equity | | | | Total liabilities | $159,588 | $142,416 | | Total stockholders' equity | $971,480 | $835,619 | | Total liabilities and stockholders' equity | $1,131,068 | $978,035 | Consolidated Statements of Operations and Comprehensive Loss The statement of operations details a net loss of $76.6 million for the three months and $142.2 million for the six months ended June 30, 2025 Consolidated Statements of Operations (in thousands) | Account | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Collaboration Revenue | $11,476 | $25,650 | | Total operating expenses | $96,033 | $76,575 | | Loss from operations | ($84,557) | ($50,925) | | Net loss | ($76,614) | ($42,062) | | Net loss per share, basic and diluted | ($0.95) | ($0.58) |