Biopharma companies live or die on positive clinical trials and approvals. News about a possible breakthrough and ramp-up of clinical studies can send a stock price soaring. Kymera Therapeutics (KYMR) stock rose 18.4% following news about their experimental drug KT-474. Sanofi (NASDAQ: SNY), Kymera's strategic partner since 2020, plans to expand ongoing Phase 2 studies of KT-474 for treating hidradenitis suppurativa and atopic dermatitis.
The decision to expand studies aims to accelerate KT-474's advancement into a pivotal Phase 3 clinical trial. An Independent Data Review Committee's positive preliminary review of KT-474's safety and efficacy data influenced Sanofi's decision. Investors are excited because expediting the drug development process could potentially bring the product to market faster.
Why It Matters
Hidradenitis suppurativa (HS) and atopic dermatitis (AD) are both chronic inflammatory skin diseases. Although not strictly defined as an autoimmune disease, studies indicate that HS may have similarities to autoimmune disorders, and AD is closely linked as well.
Kymera, a clinical-stage biopharma company, has been focused on developing a new class of small-molecule medicines that use targeted protein degradation (TPD). KT-474, which may also have applications for defined autoimmune diseases, is known as an IRAK4 degrader and is the first in its class. IRAK4 is a protein that plays a critical role in starting the body’s immune response against infections. By eliminating this protein through degradation, KT-474 has potential as a well-tolerated anti-inflammatory drug that could be successful against various immune-inflammatory diseases.
Is This Growth Sustainable?
Kymera’s TPD focus on addressing diseases currently untreatable with conventional medicines gives it substantial market potential. As for the two conditions that KT-474 targets, hidradenitis suppurativa has an estimated $1 billion market, and the market for an atopic dermatitis treatment is estimated at $8 billion. Of course, this depends heavily upon the success of its clinical trials. Kymera's current market cap is around $2.3 billion, with potential for growth if KT-474 proves successful.
While Kymera Therapeutics presents an opportunity for aggressive investors, risk-averse individuals may want to avoid the stock due to uncertainties in clinical trial outcomes and regulatory approval. For now, KYMR is trading at $38.90, up 7.39%. Based on 14 analysts, the stock is rated a Strong Buy with an average price target of $42.78.
Neither Julie Stoller nor Stocks.News have positions in this company.
Did you find this insightful?
Bad
Just Okay
Amazing
Disclaimer: Information provided is for informational purposes only, not investment advice. We do not recommend buying or selling stocks. Stock price discussions are based on publicly available data. Readers should conduct their own research or consult a financial advisor before investing. Owners of this site have current positions in stocks mentioned thru out the site, Please Read Full Disclaimer for details Here https://app.stocks.news/page/disclaimer
Contributing Writer
As a professional writer since 2012, Julie Stoller has covered many industries, from healthcare and technology to consumer products and industrials. She has written about IPOs, spinoffs, ETFs, stock splits, commodities, legislative actions impacting investors, and macroeconomic issues. While keeping up with the latest meme stocks and trends, Julie's special interests are discovering ...