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

Shares of Kymera Therapeutics, Inc. KYMR touched a 52-week high of $68.8 on Nov. 24. The stock is currently trading at $66.04.

The rally is most likely due to investor optimism around Kymera’s lead pipeline candidate KT-621.

In fact, shares of this clinical-stage biotechnology company have surged 64.1% year to date compared with the industry’s gain of 17.7%. The stock has also outperformed the sector and the S&P 500 Index during this period.

KYMR Outperforms Industry, Sector & S&P 500 Index

Let us delve into KYMR’s fundamentals, potential growth prospects, challenges and valuation levels to make a prudent choice in this scenario.

KYMR’s KT-621 Holds Potential

Kymera is deploying targeted protein degradation (TPD) to develop drugs for critical health problems and the company has advanced the first degrader into the clinic for immunological diseases.

KT-621 is 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 type 2 inflammation.

The candidate is the first STAT6-directed drug to enter clinical evaluation. KT-621 demonstrated complete STAT6 degradation in blood and skin following low daily oral doses, along with reductions in multiple disease-relevant type 2 biomarkers in a phase I study in healthy volunteers. The safety profile of the candidate was undifferentiated from placebo.

The company recently initiated dosing in its phase IIb study, BROADEN2, evaluating KT-621 in patients with moderate to severe atopic dermatitis (AD). It expects to report data from the BROADEN2 trial by mid-2027.

KYMR previously announced that it has completed dosing in the phase Ib study, BroADen, on KT-621in AD. Data is expected next month. Investors are optimistic on positive data from the study and the recent surge in price could be the reason behind the same.

Kymera is on track to initiate a phase IIb study, BREADTH, in moderate to severe asthma patients, in the first quarter of 2026. Conducting parallel phase IIb studies in AD and asthma is expected to accelerate KT-621’s development and determine the appropriate dosing strategy for subsequent parallel phase III registrational programs spanning several type 2 dermatology, gastroenterology and respiratory conditions.

Kymab’s Partnership With Gilead Brings Strategic Benefits

In June 2025, Kymera entered into an exclusive option and license agreement with Gilead Sciences, Inc. 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.

According to the companies, CDK2-directed MGDs are a new type of drug designed to remove CDK2 — a key contributor to tumor growth — rather than merely inhibiting its function.

Kymera is advancing preclinical activities for its CDK2 molecular glue program aimed at treating breast cancer and solid tumors. If Gilead exercises its option, which includes an option payment to Kymera, it would assume all development, manufacturing, and commercialization responsibilities for any products resulting from the collaboration.

KYMR’s Deal With Sanofi

Kymera also has a collaboration with Sanofi SNY to advance its pipeline. In 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 and 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.

KYMR’s Valuation and Estimates

From a valuation perspective, KYMR is overvalued. Going by the price/book ratio, KYMR’s shares currently trade at 4.99X, higher than 3.49X for the industry and the company’s mean of 3.57X.

The Zacks Consensus Estimate for 2025 loss per share has widened over the past 60 days while that for 2026 loss has narrowed to $3.74 in the same timeframe.

Road Ahead for KYMR

Kymera’s novel TPD approach is promising, and the pipeline progress is encouraging.

Positive data readout on KT-621 next month will be a significant boost for the stock. Hence, we recommend existing investors to hold the stock for now.

However, prospective investors should wait for a better entry point. Although 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.

KYMR currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

 

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This article originally published on Zacks Investment Research (zacks.com).

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