KYMR Collaborates With GILD; Stock Down on Sanofi Deal Update

Kymera Therapeutics, Inc. KYMR has announced that partner Sanofi SNY will not advance the development of lead IRAK4 degrader KT-474.This setback was somewhat offset by KYMR’s announcement of an exclusive option and license agreement with biotech giant Gilead Sciences, Inc. GILD.Kymera also commenced an underwritten public offering worth $250.0 million of its common stock.The stock was down 1.4% on June 25 and dropped 6.91% in after-market trading, probably due to the setback in Sanofi’s partnership and dilution of equity.Year to date, shares of KYMR have gained 15.5% against the industry’s decline of 2%.Image Source: Zacks Investment ResearchKYMR’s Update on Collaboration With SanofiSanofi 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 let go 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 not develop KT-474 any further. The company has also decided to exercise its participation election right for the IRAK4 target under the terms of the collaboration agreement. Per the agreement, Kymera achieved a $20 million milestone 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.Kymera Therapeutics, Inc. Price, Consensus and EPS Surprise Kymera Therapeutics, Inc. price-consensus-eps-surprise-chart | Kymera Therapeutics, Inc. QuoteMore on KYMR’s License Deal With GILDKymera entered into an exclusive option and license agreement with Gilead 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 in tumor growth, rather than just inhibiting its function.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 the latter exercises its option to exclusively license the program.KYMR Issues SharesConcurrent with these business updates, Kymera announced the commencement of an underwritten public offering of $250.0 million of shares of its common stock.Kymera intends to use the net proceeds from the offering to continue advancing its pipeline of preclinical and clinical degrader programs, which are designed to address large patient populations with significant needs and clear commercial opportunities. The proceeds will also be used for working capital and other general corporate purposes.Our TakeWhile the oncology deal with GILD looks promising and the subsequent influx of cash is positive, investors were disappointed with the update from Sanofi.Sanofi has decided to advance preclinical IRAK4 degrader KT-485 rather than advancing KT-474, which had moved to phase IIb studies in late 2023.The move definitely delays milestone payments for Kymera that could have been achieved on the potential approval of KT-474.Kymera currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Research Chief Names "Single Best Pick to Double"From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant 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