Kymera Q4 Loss Wider Than Expected, Cash Boost Extends Runway

Core Insights - Kymera Therapeutics (KYMR) reported a wider fourth-quarter 2025 loss of 97 cents per share, exceeding the Zacks Consensus Estimate of a loss of 77 cents, and a deterioration from a loss of 88 cents per share in the same quarter last year [1][7] - The company's collaboration revenues were $2.9 million, significantly below the Zacks Consensus Estimate of $30 million, and down from $7.4 million in the year-ago quarter [2][5] - Kymera's shares have increased by 214.2% over the past year, outperforming the industry average rise of 18.6% [2] Financial Performance - Research and development (R&D) expenses rose to $83.8 million, a 16.7% increase year over year, driven by investments in the STAT6 program and other discovery initiatives [3][14] - General and administrative expenses increased by 3.7% year over year to $16.9 million, influenced by higher legal and professional service fees, as well as increased personnel and facility costs [4] - For the full year 2025, revenues decreased by 16.8% to $39.2 million, missing the Zacks Consensus Estimate of $54.7 million, while loss per share increased to $3.69 from $2.98 in 2024 [5] Capital and Funding - In December 2025, Kymera completed an underwritten equity offering that generated approximately $692 million in gross proceeds, raising year-end cash to about $1.6 billion and extending the cash runway into 2029 [4][14] Pipeline Developments - Kymera is advancing its targeted protein degradation (TPD) strategy, with KT-621 in phase 2 development for atopic dermatitis and asthma, showing promising results in recent studies [8][9] - The BROADEN2 phase IIb study for KT-621 has been expanded to include adolescents, with data expected from mid- to late-2027 [10] - KT-579, an oral IRF5 degrader, has begun phase 1 trials following FDA clearance, with results anticipated in the second half of 2026 [11] - The partnered program KT-485/SAR447971 is expected to enter clinical trials in 2026, while preclinical work continues on an oral CDK2 program with Gilead [12][13] Investment Thesis - The investment thesis focuses on the execution of Kymera's pipeline in targeted protein degradation, particularly the progress of KT-621, which could positively impact stock performance [15]