Kymera Shrugs Off Sanofi Bust With Gilead Deal--But There Are Caveats

Summary

  • Kymera Therapeutics, Inc.'s stock recently surged on promising KT-621 Phase 1 data, but Sanofi dropped its lead immunology drug, raising concerns about future milestone payments.
  • The new Gilead Sciences, Inc. partnership offers upfront cash and potential milestones, but both companies have weak oncology track records and are starting from scratch.
  • Kymera's pivot from immunology to oncology appears reactive after Sanofi's exit, and its ability to deliver clinical success remains unproven.
  • I maintain a 'Hold' rating on both KYMR and GILD stocks, leaning bearish on Kymera, as pipeline setbacks and uncertain partnerships threaten its $3bn valuation.

Speed Dating Speech Bubble

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Investment Overview — Kymera's Three Major Announcements Since My Last Note — Deal With Gilead Sciences

In my last note on Kymera Therapeutics, Inc. (NASDAQ:KYMR) for Seeking Alpha — around six weeks ago — I downgraded

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This article was written by

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Edmund Ingham is a biotech consultant. He has been covering biotech, healthcare, and pharma for over 5 years, and has put together detailed reports of over 1,000 companies. He leads the investing group Haggerston BioHealth.

The group is for both novice and experienced biotech investors. It provides catalysts to look out for and buy and sell ratings. It also provides product sales and forecasts for all the Big Pharmas, forecasting, integrated financial statements, discounted cash flow analysis and market by market analysis. Learn more.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of GILD either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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