Kymera Overcomes Sanofi Deal Update, Marches Ahead With Pipeline

It has been a roller coaster ride for Kymera Therapeutics KYMR stock this year.  This clinical-stage biotechnology company is pioneering the field of targeted protein degradation (TPD) to develop drugs for various immunological diseases.The company has formed partnerships with bigwigs like Sanofi SNY and Gilead Sciences, Inc. GILD to advance its pipeline.KYMR’s Deal With SanofiIn June 2025, Sanofi informed Kymera that it has selected KT-485/SAR447971, an oral, highly potent and selective development candidate targeting IRAK4 for immuno-inflammatory diseases, to advance into clinical studies.The candidate was discovered by Kymera.KT-485 is being prioritized for development under the companies’ existing IRAK4 collaboration following extensive preclinical work supporting its robust development potential. The candidate is expected to advance into early-stage testing next year.Consequently, Sanofi has decided to discontinue the development of KT-474, which was being evaluated for the treatment of hidradenitis suppurativa (HS) and atopic dermatitis (AD) in two Phase IIb dose-ranging studies.Sanofi will no longer develop KT-474 and has decided to exercise its participation election right for the IRAK4 target under the terms of the collaboration agreement. Per the agreement, Kymera received a $20 million milestone payment in the second quarter of 2025 (related to preclinical activities associated with KT-485).Kymera is eligible to receive up to $975 million in potential clinical, regulatory, and commercial milestones related to KT-485, including an additional milestone upon the initiation of phase I clinical testing.KYMR Collaborates With GILDIn June 2025, Kymera entered into an exclusive option and license agreement with GILD to accelerate the development and commercialization of a novel molecular glue degrader (MGD) program targeting cyclin-dependent kinase 2 (CDK2) with broad oncology treatment potential, in breast cancer and other solid tumors.Per the companies, CDK2-directed MGDs are a new type of drug designed to remove CDK2, a key contributor to tumor growth, rather than just inhibiting its function.While traditional inhibitors of CDK2 prevent it from working, they often interfere with similar proteins, leading to undesired side effects. In contrast, MGDs have the potential to provide more precise, safe, and effective treatments for cancers that rely on CDK2 activity by selectively removing this protein from cells.Under the terms of the agreement, Kymera will receive an upfront payment of $85 million and potential option exercise payments. The total payments will range up to $750 million.Kymera may also receive tiered royalties ranging from high single-digit to mid-teens on net product sales under the collaboration. While Kymera will lead all research activities for the CDK2 program, Gilead will have global rights to develop, manufacture and commercialize all products resulting from the collaboration if it exercises its option to exclusively license the program.KYMR’s Progress With Other CandidatesKymera’s novel TPD approach is promising, and the pipeline progress is encouraging.Earlier in the year, KYMR announced positive clinical results from the phase I study on the investigational candidate, KT-621, an investigational, first-in-class, once daily, oral degrader of STAT6, the specific transcription factor responsible for IL-4/IL-13 signaling and the central driver of Th2 inflammation.Data surpassed the company’s expectations and showed comparable efficacy to blockbuster atopic dermatitis (AD) drug Dupixent (dupilumab). A phase I study BroADen Phase 1b trial, an open label study in patients with moderate to severe AD, is ongoing, with data expected to be reported in the fourth quarter of 2025.Two parallel phase IIb studies in AD and asthma patients are planned to be initiated in the fourth quarter of 2025 and the first quarter of 2026, respectively.Kymera has selected a follow-on oral STAT6 degrader to KT-621, with a strong potency, selectivity, and safety profile, and has advanced it through all required IND-enabling studies.Meanwhile, IND-enabling studies on KT-579 are ongoing. Kymera plans to advance the program into phase I testing in early 2026.Our Take on KYMR’s ProgressAlthough the oncology deal with GILD appears promising and the resulting influx of cash is encouraging, there is still a long way to go.Sanofi's decision to advance preclinical IRAK4 degrader KT-485 rather than advancing KT-474 delayed milestone payments for Kymera that could have been achieved on the potential approval of KT-474, which had moved to phase IIb studies in late 2023. Beyond Nvidia: AI's Second Wave Is HereThe AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.See "2nd Wave" AI stocks now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Sanofi (SNY): Free Stock Analysis Report Gilead Sciences, Inc. (GILD): Free Stock Analysis Report Kymera Therapeutics, Inc. (KYMR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks