Kymera' s Q1 Loss Narrower Than Expected, Pipeline Progress Encouraging

Kymera Therapeutics, Inc. KYMR reported a first-quarter 2025 loss of 82 cents per share, narrower than the Zacks Consensus Estimate of a loss of 92 cents. In the year-ago quarter, Kymera reported a loss of 69 cents per share. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

The year-over-year deterioration was due to higher R&D expenses.

Collaboration revenues totaled $22.1 million, which beat the Zacks Consensus Estimate of $10 million.

In the year-ago quarter, Kymera earned collaboration revenues of $10.3 million.

The company primarily earns collaboration revenues under its association with pharma bigwig Sanofi SNY.

Shares of KYMR have lost 23.5% year to date compared with the industry’s decline of 8.5%.

KYMR’s Operating Expenses Increase in Q1

Research and development expenses totaled $80.2 million, up 64.3% year over year. This was primarily due to increased expenses related to investments in the STAT6 and TYK2 degrader programs, platform and discovery programs, as well as a rise in occupancy and related costs resulting from continued growth in the research and development organization.

General and administrative expenses totaled $16.3 million, up 13% year over year due to an increase in legal and professional service fees.

As of March 31, 2025, Kymera had $775 million in cash, cash equivalents and investments. The company expects its cash and cash equivalents to provide it with an anticipated cash runway into the first half of 2028.

Kymera Therapeutics, Inc. Price, Consensus and EPS Surprise

Kymera Therapeutics, Inc. price-consensus-eps-surprise-chart | Kymera Therapeutics, Inc. Quote

Key Pipeline Updates From KYMR

Kymera completed the phase I study on healthy volunteers evaluating the safety, tolerability, pharmacokinetics and pharmacodynamics of single and multiple-ascending doses of KT-621 compared to placebo. Data from this study is expected next month.

In April, Kymera initiated dosing in the KT-621 BroADen phase Ib study in moderate to severe atopic dermatitis (AD) patients. This open-label, BroADen study will evaluate a daily dose of KT-621 for four weeks in approximately 20 patients. The prime objective is to show that robust STAT6 degradation in blood and skin by KT-621 has a dupilumab-like effect on reducing multiple Th2 biomarkers in the blood and on the transcriptome of active AD skin lesions at four weeks. The study will also assess the effects on clinical endpoints, such as the Eczema Area and Severity Score and the pruritus numerical rating scale.
Data is expected to be reported in the fourth quarter of 2025.

Kymera plans to begin two parallel phase IIb studies in AD and asthma patients in the fourth quarter of 2025 and the first quarter of 2026, respectively. These studies are expected to accelerate KT-621 development and enable dose selection for subsequent parallel phase III registration studies across multiple Th2 dermatology, gastroenterology and respiratory indications.

Kymera named KT-579, an oral IRF5 degrader, as its lead development candidate and intends to advance the program into phase I testing in early 2026. IND-enabling studies are ongoing.

KT-474 (SAR444656) is a first-in-class IRAK4 degrader in development for the treatment of immune-inflammatory diseases with significant patient needs, such as hidradenitis suppurativa (HS) and AD.

In collaboration with partner Sanofi, two phase IIb dose-ranging clinical trials for the treatment of HS and AD are ongoing with primary completion expected in the first half of 2026 for HS and mid-2026 for AD.

Last month, Kymera achieved a milestone payment of $20 million related to certain preclinical activities associated with the IRAK4 program.

However, Kymera has decided not to advance KT-295, its oral TYK2 degrader, into clinical development, despite completing IND-enabling studies with no adverse findings. This decision should allow Kymera to focus on its other pipeline programs — KT-621 and KT-579.

KYMR’s Zacks Rank and Stocks to Consider

Kymera currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the pharma/biotech sector are ADMA Biologics Inc. ADMA and Beam Therapeutics Inc. BEAM, both carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

In the past 60 days, estimates for ADMA Biologics’ earnings per share have increased from 70 cents to 71 cents for 2025. During the same time, earnings per share estimates for 2026 have remained unchanged at 93 cents. Year to date, shares of ADMA have gained 12%.

ADMA’s earnings beat estimates in two of the trailing four quarters and missed the same in the other two, the average surprise being 14.68%.

In the past 60 days, estimates for Beam Therapeutics' loss per share have narrowed from $4.45 to $4.31 for 2025. During the same time, loss per share estimates for 2026 have narrowed from $4.94 to $4.57.

 

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