Kymera Therapeutics stock yo-yoed Friday after the biotech outlined its newest immune disease drugs and tacked on a $275 million offering. KYMR stock is bounding off its 200-day line.
The company is studying protein degradation, the process by which proteins are naturally destroyed in the body to maintain balance. Unlike monoclonal antibodies, protein degraders don't bind to problematic targets in the body. Instead, they drag troublesome proteins to the molecular trash compactor, removing them entirely. On Thursday, the company said its platform showed promise in degrading two new proteins tied to immunological diseases.
On Friday, Kymera priced a $275 million public offering of common stock. This follows an 18.9% jump for KYMR stock on Thursday after the company's R&D Day.
"Overall, we believe that this R&D (research and development) event reaffirmed Kymera's expanding strategic focus and commitment to drug development in immunology, and provided encouraging early signals for a pair of new protein degrader candidates," Leerink Partners analyst Thomas Smith said in a report to clients.
After soaring in premarket trading, KYMR stock pulled back for a fractional loss at the close on today's stock market. Shares ended the regular session at 27.18.
KYMR Stock: Two New Protein Degraders
Kymera says its newest protein degraders each have a "considerable market potential."
Degrading the STAT6 protein could be the key to solving inflammation in allergic diseases. This lines up with drugs that block interleukins 4 and 13, Kymera said in a news release. That includes Dupixent, a major blockbuster from Regeneron Pharmaceuticals and Sanofi.
Meanwhile, TYK2 is involved in autoimmune and inflammatory diseases. Kymera says degrading this protein could help patients with inflammatory bowel disease, psoriasis, psoriatic arthritis, lupus and other diseases. The company plans to start a Phase 1 study in the first half of 2025.
Smith, who has a market perform rating on KYMR stock, sees the early drug candidates as eventually contributing $200 million in sales. He notes the $275 million in proceeds following the public offering will extend the company's cash runway beyond the prior first-half 2026 guidance.
"We believe these datasets could be value-inflecting for Kymera shares in 2025, meaningfully impacting investor perception of the modality and Kymera's platform," he said.
On Friday, KYMR stock jumped to a seven-month high before tumbling after the stock market opened, according to MarketSmith.com. Shares have a strong IBD Digital Relative Strength Rating of 90, putting their 12-month performance in the top 10% of all stocks.
Follow Allison Gatlin on X, the platform formerly known as Twitter, at @IBD_AGatlin.
