What happened
Shares of Kymera Therapeutics(NASDAQ: KYMR) were up more than 13% as of 3 p.m. on Tuesday. The stock bounced back strongly after hitting its 52-week low at $12.94 on Monday. The healthcare stock is down more than 37% so far this year.
So what
Kymera is a clinical-stage biotech company that focuses on small molecule protein degrader medicines. After the markets closed on Monday, the company released a presentation that said, among other things, that the company expects to have one or more Investigational New Drug applications (IND) for at least one therapy every year.
The company has nine programs in its pipeline, led by IRAK-4, to treat a multiple number of autoimmune disorders. The company is collaborating with Sanofi on the therapy and said Sanofi, after seeing positive results in phase 1 trials, is prepared to start phase 2 trials in the fourth quarter for the therapy to treat atopic dermatitis and hidradenitis suppurativa, both autoimmune skin disorders. Kymera also has Irakimid in phase 1 trials to treat relapsed and refractory B-cell non-Hodgkin lymphoma (NHL), and relapsed and refractory diffuse large B-cell lymphoma (DLBCL), STAT3 to treat leukemia and different types of lymphomas, and MDM2 to treat liquid and solid tumors.
Now what
The stock has been quite volatile, so expect more of the same. It's not unusual to see these type of swings with clinical-stage biotech companies. Kymera, in Q2, said it had $472 million in cash, enough to fund operations into the second half of 2025. The company isn't profitable yet, but its financials appear to be improving. In the quarter, collaboration revenues were $16.5 million, up from $11.5 million in the same period a year ago, though its losses grew to $45.8 million compared to $41.3 million in net losses in Q2 2022.
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Jim Halley has no position in any of the stocks mentioned. The Motley Fool recommends Kymera Therapeutics. The Motley Fool has a disclosure policy.
