Kymera Surges 70% in 3 Months: Buy, Sell or Hold the Stock?

Core Insights - Kymera's shares have surged 70.7% over the past three months, significantly outperforming the industry gain of 9.7% and the broader S&P 500 index [1][9] - The company is focused on targeted protein degradation (TPD) to develop drugs for various immunological diseases [1] Collaboration with Gilead - Kymera has entered an exclusive option and license agreement with Gilead Sciences to advance a novel molecular glue degrader (MGD) program targeting cyclin-dependent kinase 2 (CDK2), which has potential applications in oncology [4][5] - Under the agreement, Kymera will receive an upfront payment of $85 million, with total potential payments reaching up to $750 million [6] - Kymera may also earn tiered royalties on net product sales, while it will lead research activities for the CDK2 program [7] Setback with Sanofi - Kymera faced a setback with Sanofi, which decided to prioritize the development of a different candidate, KT-485, over Kymera's KT-474, impacting potential milestone payments [10][14] - Despite this, Kymera achieved a $20 million milestone related to preclinical activities for KT-485, which is expected to enter early-stage testing next year [12][13] Pipeline Developments - Kymera's pipeline includes ongoing studies for KT-621 in atopic dermatitis and plans for two phase IIb studies in asthma and atopic dermatitis in late 2025 and early 2026 [15] - The company has identified KT-579 as its lead development candidate, with plans to advance it into phase I testing in early 2026 [16]