Kymera Therapeutics, Inc. (KYMR) | Investment Case

1. Company Snapshot

1.a. Company Description

Kymera Therapeutics, Inc., a biopharmaceutical company, focuses on discovering and developing novel small molecule therapeutics that selectively degrade disease-causing proteins by harnessing the body's own natural protein degradation system.It engages in developing IRAK4 program, which is in Phase I clinical trial for the treatment of immunology-inflammation diseases, including hidradenitis suppurativa, atopic dermatitis, macrophage activation syndrome, general pustular psoriasis, and rheumatoid arthritis; IRAKIMiD program to treat MYD88-mutated diffuse large B cell lymphoma; STAT3 program for the treatment of hematologic malignancies and solid tumors, as well as autoimmune diseases and fibrosis; and MDM2 program to treat hematological malignancies and solid tumors.The company was incorporated in 2015 and is headquartered in Watertown, Massachusetts.

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1.b. Last Insights on KYMR

Kymera Therapeutics' recent performance has been driven by optimism surrounding its pipeline, particularly KT-621's progress in atopic dermatitis. The company has made significant strides, including initiating the BROADEN2 Phase 2b clinical trial for KT-621. Additionally, Kymera's participation in investor conferences, such as the UBS Global Healthcare Conference, has likely boosted investor confidence. The company's advancements in its protein degradation pipeline, fueled by new deals and milestone payouts, have also contributed to its positive momentum.

1.c. Company Highlights

Last Price	66.62
Change Percentage	0.59%
Open	66.36
Previous Close	66.23
Market Cap ( Millions)	4793
Volume	378420
Year High	68.8
Year Low	19.45
M A 50	60.95
M A 200	43.82

FCF Yield	-4.80%
Dividend Yield	0.00%
ROE	-33.35%
Debt / Equity	8.88%
Net Debt / EBIDTA	9.68%
Price To Book	6.15
Price Earnings Ratio	-19.71
Price To FCF	-20.82
Price To sales	109.6
EV / EBITDA	-15.93

2. Kymera's Q3 2025 Earnings: A Closer Look

Kymera reported revenue of $2.8 million for the third quarter of 2025, entirely attributable to its collaboration with Gilead. The company's research and development (R&D) expenses for the quarter were $74.1 million, with an adjusted cash R&D spend of $65.7 million, reflecting a 7% decrease from the second quarter of 2025. Kymera's EPS loss was $0.9, wider than the estimated loss of $0.71. The company's cash balance stood at $978.7 million as of September, providing a cash runway into the second half of 2028.

Publication Date: Nov -13

                                    📋 Highlights
                                    Phase IIb AD Trial Initiated:
                                                for KT-621 with 200 patients, expected top-line results by mid-2027.
$978.7M Cash Balance:
                                                as of Q3 2025, ensuring operational runway through late 2028.
7% QoQ R&D Cost Reduction:
                                                to $65.7M adjusted cash spend, driven by efficiency measures.
Oral STAT6 Degrader Differentiation:
                                                with potential for 70-80% TARC reduction, targeting dupilumab-treated populations (~130M patients).

                                

Pipeline Progress

Kymera has made significant progress in advancing its oral immunology pipeline, with key achievements including the initiation of the Phase IIb AD study, BROADEN2, and the unveiling of its IRF5 program. The company's STAT6 program, KT-621, has shown impressive results in the healthy volunteer study and is being evaluated in the Phase Ib trial in AD patients. As Nello Mainolfi noted, "Our STAT6 program has demonstrated the ability to block IL-4 and 13 signaling as well as upstream biologics, including IL-4 receptor blocking drugs like dupilumab."

Valuation Metrics

Analyzing Kymera's valuation metrics, we see a P/S Ratio of 104.52, indicating a high revenue multiple. The company's EV/EBITDA ratio stands at -15.18, while its P/E Ratio is -18.79, reflecting the significant losses it is incurring. The ROE and ROIC are both negative, at -33.35% and -31.82%, respectively. These metrics suggest that the market is pricing in significant growth expectations, but also highlighting the risks associated with the company's current financial performance.

Future Outlook

Analysts estimate a revenue decline of 17.8% for Kymera next year, indicating a challenging financial outlook. However, the company's progress in its pipeline and its cash position provide a foundation for future growth. As Kymera continues to advance its clinical programs, investors will be watching closely for updates on its STAT6 program and other pipeline developments.

3. NewsRoom

Kymera Therapeutics, Inc. (KYMR) Presents at Citi Annual Global Healthcare Conference 2025 Transcript

Dec -03

Source: seekingalpha.com

Kymera Trades Near 52-Week High: Time to Buy, Sell or Hold the Stock?

Nov -26

Source:

Kymera Therapeutics Announces First Patient Dosed in BROADEN2 Phase 2b Atopic Dermatitis Clinical Trial of KT-621, a First-in-Class, Oral STAT6 Degrader

Nov -25

Source: globenewswire.com

Kymera Therapeutics to Participate in Upcoming December Investor Conferences

Nov -24

Source: globenewswire.com

Kymera Therapeutics, Inc. (KYMR) Presents at UBS Global Healthcare Conference 2025 Transcript

Nov -10

Source: seekingalpha.com

Kymera Therapeutics, Inc. (KYMR) Q3 2025 Earnings Call Transcript

Nov -04

Source: seekingalpha.com

Kymera Therapeutics, Inc. (KYMR) Reports Q3 Loss, Misses Revenue Estimates

Nov -04

Source: zacks.com

Kymera Therapeutics to Participate in Upcoming November Investor Conferences

Nov -03

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.27%)

6. Segments

Small Molecule Therapeutics

Expected Growth: 9.27%

Kymera Therapeutics' Small Molecule Therapeutics segment growth of 9.27% is driven by increasing demand for targeted protein degradation therapies, strategic partnerships, and a strong pipeline of novel E3 ubiquitin ligase-based molecules. Additionally, advancements in PROTAC technology and expanding research in oncology and immunology further fuel growth.

7. Detailed Products

KT-474

A novel, orally bioavailable, irreversible inhibitor of the ubiquitin ligase cereblon, for the treatment of multiple myeloma and other hematologic malignancies.

KT-333

A novel, orally bioavailable, irreversible inhibitor of the ubiquitin ligase IRAK4, for the treatment of immune-inflammatory diseases.

E3 ubiquitin ligase degraders

A novel class of targeted protein degraders that harness the body's natural protein degradation machinery to eliminate disease-causing proteins.

8. Kymera Therapeutics, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Kymera Therapeutics, Inc. operates in a niche market with limited substitutes, but the threat of substitutes is still present due to the ongoing research and development in the biotechnology industry.

Bargaining Power Of Customers

Kymera Therapeutics, Inc. has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's products are highly specialized, making it difficult for customers to switch to alternative suppliers.

Bargaining Power Of Suppliers

Kymera Therapeutics, Inc. relies on a few key suppliers for raw materials and services, which gives them some bargaining power. However, the company's strong relationships with its suppliers and its ability to negotiate contracts mitigate this risk.

Threat Of New Entrants

The biotechnology industry has high barriers to entry, including significant capital requirements, complex regulatory requirements, and the need for specialized expertise. This makes it difficult for new entrants to enter the market.

Intensity Of Rivalry

The biotechnology industry is highly competitive, with many established players and new entrants vying for market share. Kymera Therapeutics, Inc. faces intense competition from companies with similar products and technologies.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	17.65%
Debt Cost	3.95%
Equity Weight	82.35%
Equity Cost	15.51%
WACC	13.47%
Leverage	21.44%

11. Quality Control: Kymera Therapeutics, Inc. passed 3 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Dianthus Therapeutics

A-Score: 4.6/10

Value: 6.4

Growth: 6.0

Quality: 5.0

Yield: 0.0

Momentum: 8.5

Volatility: 1.7

1-Year Total Return ->

MannKind

A-Score: 4.0/10

Value: 3.2

Growth: 8.7

Quality: 7.1

Yield: 0.0

Momentum: 2.0

Volatility: 3.0

1-Year Total Return ->

Kymera Therapeutics

A-Score: 3.8/10

Value: 6.4

Growth: 3.1

Quality: 4.9

Yield: 0.0

Momentum: 6.5

Volatility: 2.0

1-Year Total Return ->

Syros Pharmaceuticals

A-Score: 3.5/10

Value: 8.2

Growth: 5.6

Quality: 7.4

Yield: 0.0

Momentum: 0.0

Volatility: 0.0

1-Year Total Return ->

TScan Therapeutics

A-Score: 2.7/10

Value: 7.2

Growth: 4.2

Quality: 4.4

Yield: 0.0

Momentum: 0.0

Volatility: 0.7

1-Year Total Return ->

OmniAb

A-Score: 2.7/10

Value: 7.7

Growth: 1.6

Quality: 4.6

Yield: 0.0

Momentum: 0.0

Volatility: 2.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

41.63%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

13.47%

Kymera Therapeutics, Inc. - US5015751044

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on KYMR

1.c. Company Highlights

Strong Momentum

Lower Growth

Average Quality

Earnings Beats

Revenues Miss

Medium Volatility

Revenues Beats

Average Yield

Stable Momentum

Earnings Miss

Average Growth

2. Kymera's Q3 2025 Earnings: A Closer Look

Pipeline Progress

Valuation Metrics

Future Outlook

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.27%)

6. Segments

Small Molecule Therapeutics

Expected Growth: 9.27%

7. Detailed Products

KT-474

KT-333

E3 ubiquitin ligase degraders

8. Kymera Therapeutics, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Kymera Therapeutics, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

66.62$

Current Price

66.62$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA