Kymera Therapeutics(KYMR) - 2022 Q1 - Earnings Call Transcript

Financial Data and Key Metrics Changes - For Q1 2022, the company recognized $9.6 million in revenue, primarily from collaborations with Sanofi and Vertex, with deferred revenue totaling approximately $93 million [34] - Operating expenses for the quarter were $35.9 million for R&D, with adjusted cash R&D spending at $32 million, reflecting a 5% decrease from the previous quarter [35] - General and administrative expenses were $10.6 million, with adjusted cash G&A spending at about $6.6 million, a 2% decrease from the previous quarter [36] - The company exited Q1 with cash and equivalents of approximately $523 million, providing a runway into 2025 based on current spending levels [37] Business Line Data and Key Metrics Changes - The company has three disclosed oncology programs: KT-333 (STAT3 degrader), KT-413 (IRAKIMid), and KT-253 (MDM2 degrader), all tracking as expected [14][19] - KT-474 (IRAK4 degrader) showed robust IRAK4 degradation with up to 98% reduction in PBMC at steady state during clinical trials [24] Market Data and Key Metrics Changes - The company is focusing on high unmet needs in oncology and inflammatory conditions, with a unique approach to targeted protein degradation [5][8] - The IRAK4 program has shown promising results in terms of safety and efficacy, with plans to extend the dosing duration in clinical trials [30][31] Company Strategy and Development Direction - The company aims to build a best-in-class, fully integrated degrader medicine company, focusing on unique, high-value targets [4][6] - There is a strong emphasis on building E3 ligase capabilities, which the company believes provides a competitive advantage [7] - The company is exploring opportunities in both oncology and inflammatory conditions, with a diverse pipeline that includes targeting high-value, undrugged proteins [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed excitement about the company's position, highlighting a strong pipeline and partnerships that enable expansion across multiple disease areas [39] - The company anticipates generating key proof-of-mechanism data in two oncology clinical programs in 2022, with plans to add a fourth clinical program later in the year [40][41] Other Important Information - The company has made protocol modifications to extend the dosing duration in clinical trials, aiming to gather more data on safety and efficacy [30][33] - Management emphasized transparency in communication regarding safety findings, including a modest QT prolongation observed during trials [54][56] Q&A Session All Questions and Answers Question: On the 28-day patient cohort, do you still anticipate enrolling 20 patients or more? - Management indicated that the extension of the study to 28 days was driven by the desire to understand the pharmacodynamics and clinical profile of the molecule better [47] Question: Can you provide more color on the QT prolongation observed? - Management clarified that the QT prolongation was a modest effect, not associated with any adverse events, and was only observed after multi-dosing [51][52] Question: What are the newly added clinical endpoints for KT-474? - Management stated that the extension to 28 days allows for the evaluation of exploratory clinical endpoints, including measures for atopic dermatitis and hidradenitis suppurativa [30][64] Question: How will the decision-making process with Sanofi unfold following the release of KT-474 data? - Management explained that a full data package will be presented to Sanofi, and they expect a swift decision regarding advancing to Phase II [78][79] Question: How does the recent clinical hold on Curis's IRAK4 inhibitor impact your IRAKIMiD program? - Management noted that they have not seen any safety concerns related to rhabdomyolysis in their preclinical studies and believe the issues with Curis's drug are likely due to off-target effects [84] Question: What is the anticipated degradation profile needed for IRAK4 in the AD/HS population? - Management indicated that they expect similar degradation levels to impact clinical outcomes in both atopic dermatitis and hidradenitis suppurativa [93]