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Kymera Therapeutics, Inc. (KYMR)·Q4 2024 Earnings Summary

Executive Summary

  • Q4 2024 collaboration revenue was $7.4M, down sharply year over year (Q4 2023: $47.9M) given fewer milestone recognitions, but up sequentially vs Q3 2024 ($3.7M); net loss was $70.8M with EPS of $(0.88) as R&D investment ramped ahead of multiple 2025 readouts .
  • Balance sheet remains a strength: $851M in cash, cash equivalents and investments with runway into mid-2027, funding KT-621 (STAT6) and KT-295 (TYK2) through key inflections and Sanofi-led KT-474 (IRAK4) Phase 2b readouts in 2026 .
  • Pipeline execution on track: complete KT-621 Phase 1 SAD/MAD data in June 2025; Phase 1b AD patients start in Q2 2025 with data in Q4 2025; Phase 2b in AD to start Q4 2025 and asthma in Q1 2026; KT-295 Phase 1 start in Q2 2025 with data in Q4 2025; KT-474 Phase 2b primaries expected 1H 2026 (HS) and mid-2026 (AD) .
  • Stock-relevant catalysts: June 2025 KT-621 healthy volunteer data and Q4 2025 AD Phase 1b data; plus disclosure of a new first-in-class oral immunology program in early May 2025 .

What Went Well and What Went Wrong

  • What Went Well

    • Clinical momentum and clear 2025 roadmap: “We’re positioned to an even more productive 2025… KT-621 Phase I data [June], Phase Ib [Q4], and initiate two Phase IIb studies; KT-295 into clinic next quarter with data before year-end” (CEO) .
    • Strong capital runway into mid-2027 enabling multiple readouts and late-stage initiations .
    • Sanofi expansion of KT-474 Phase 2 into dose-ranging Phase 2b to accelerate to Phase 3 underscores partner conviction in IRAK4 mechanism (primary completions: HS 1H 2026; AD mid-2026) .

  • What Went Wrong

    • Revenue headwind vs prior year: Q4 collaboration revenue fell to $7.4M (Q4’23: $47.9M), reflecting lower milestone recognition; revenue remains concentrated in Sanofi collaboration .
    • Operating expense growth: R&D rose to $71.8M in Q4 (vs $53.0M Q4’23; $60.4M Q3’24) as KYMR scaled STAT6 and TYK2 programs; G&A also increased to $16.3M (vs $14.2M Q4’23) .
    • Clinical design scrutiny: analysts probed the single‑arm, no‑placebo Phase 1b AD design and lack of intra‑study dose response; management emphasized biomarker focus and speed to Phase 2b as rationale .

Financial Results

MetricQ4 2023Q2 2024Q3 2024Q4 2024
Collaboration Revenue ($USD Millions)$47.884 $25.650 $3.741 $7.394
R&D Expense ($USD Millions)$52.970 $59.202 $60.410 $71.818
G&A Expense ($USD Millions)$14.227 $17.373 $15.455 $16.331
Loss from Operations ($USD Millions)$(19.313) $(50.925) $(72.124) $(80.755)
Net Loss ($USD Millions)$(14.369) $(42.062) $(62.487) $(70.753)
EPS (Basic & Diluted)$(0.25) $(0.58) $(0.82) $(0.88)

KPIs and Balance Sheet

MetricQ2 2024Q3 2024Q4 2024
Cash, Cash Equivalents & Investments ($USD Millions)$702.398 $911.005 $850.903
Deferred Revenue ($USD Millions)$22.448 $20.024 $13.576
Total Assets ($USD Millions)$826.021 $1,034.842 $978.035
Adjusted Cash R&D Spend (ex‑SBC) ($USD Millions)——$65.0 (Q4)
Adjusted Cash G&A Spend (ex‑SBC) ($USD Millions)——$9.3 (Q4)
Cash Runway—Into mid‑2027 Into mid‑2027

Notes: Collaboration revenue in Q4 2024 was entirely attributable to the Sanofi collaboration .

Guidance Changes

Metric/ProgramPeriodPrevious GuidanceCurrent GuidanceChange
KT-621 Phase 1 (SAD/MAD) data2Q 2025“1H 2025” (Oct 31, 2024) “Complete SAD/MAD data in June 2025” Narrowed timing window
KT-621 Phase 1b (AD) start2Q 2025“Initiate in 2Q25” (Jan 14, 2025) “Initiate in 2Q25” Maintained
KT-621 Phase 1b (AD) data4Q 2025“Data in 4Q25” (Jan 14, 2025) “Data in 4Q25” Maintained
KT-621 Phase 2b (AD) start4Q 2025“Start 4Q25” (Jan 14, 2025) “Start 4Q25” Maintained
KT-621 Phase 2b (Asthma) start1Q 2026“Start early 2026” (Jan 14, 2025) “Start 1Q26” Clarified to 1Q26
KT-295 (TYK2) Phase 1 start2Q 2025“2Q25” (Jan 14, 2025) “2Q25” Maintained
KT-295 Phase 1 data4Q 2025“Late 2025” (Jan 14, 2025) “4Q25” Narrowed to quarter
KT-474/SAR444656 Phase 2b primary completion (HS)1H 2026“1H26” (Oct 31, 2024) “1H26” Maintained
KT-474/SAR444656 Phase 2b primary completion (AD)Mid‑2026“Mid‑2026” (Oct 31, 2024) “Mid‑2026” Maintained
New oral immunology program disclosureEarly May 2025“1H25” (Jan 14, 2025) “Early May 2025 webcast” Narrowed to early May
Cash runway—Into mid‑2027 (Q3 press release) Into mid‑2027 (Q4 press release) Maintained

Earnings Call Themes & Trends

TopicPrevious Mentions (Q2 & Q3 2024)Current Period (Q4 2024)Trend
STAT6 (KT-621) clinical pathIND-enabling completed; Phase 1 to start 2H24; preclinical dupilumab‑like activity shared (Q2/Q3) Phase 1 nearing completion of final cohorts; June 2025 data; Phase 1b AD in Q2 2025; Phase 2b AD in Q4 2025; asthma in Q1 2026 Execution progressing; timelines crystallizing
TYK2 (KT-295)TYK2 program prioritized; plan to start Phase 1 1H25 (Q2/Q3) Phase 1 start 2Q25; aim for deep 24/7 degradation and biologics‑like activity; data 4Q25 On‑track; clear pharmacology bar
IRAK4 (KT-474, Sanofi)Sanofi expanding to dose‑ranging Phase 2b to accelerate path (Q2/Q3) Phase 2b expansions reiterated; primary completions HS 1H26, AD mid‑26 Larger, faster path to registrational
Capital and OpExCash grew after raise; runway into mid‑2027 (Q3) $851M cash; runway into mid‑2027; higher R&D as programs scale; cash R&D $65M in Q4 Well‑funded; spend ramping with trials
Strategy shift to ImmunologyFocus shift away from oncology beyond Phase 1 without partner (Q3) Reaffirmed immunology leadership ambition and partner‑only oncology beyond Phase 1 Consistent focus, partnering optionality

Management Commentary

  • “We are developing an industry leading oral immunology pipeline… oral drugs with biologics-like activity… I couldn’t be more excited about what is ahead for us in 2025.” — Nello Mainolfi, CEO .
  • “Our primary goal [for KT-621 Phase 1] is to demonstrate STAT6 degradation and safety… we define [robust] as a reduction of 90% or more at doses that are safe and well tolerated.” — Jared Gollob, CMO .
  • “The Phase Ib [AD] is streamlined, biomarker‑focused to transition quickly into Phase IIb… biomarkers don’t lie.” — Nello Mainolfi .
  • “Our cash balance… is expected to provide a runway into mid‑2027… enabling several important Phase II trials across our programs.” — Bruce Jacobs, CFO .

Q&A Highlights

  • Phase 1b AD design: Single‑arm, 28‑day biomarker‑focused study justified by strong preclinical/Phase 1 target engagement; placebo omitted to move faster to Phase 2b; stringent inclusion/exclusion and site selection to reduce placebo effects .
  • Dose selection: Phase 1 SAD/MAD designed to map dose‑PK‑degradation in blood/skin to ≥90% target degradation; Phase 2b will be dose‑range finding; healthy volunteer biomarker dose‑response not relied upon for dose selection .
  • Tissue distribution: Preclinical models show broad tissue distribution and consistent degradation (blood, skin, spleen, lungs); skin and blood used as human surrogates .
  • TYK2 ambitions: Aim for sustained ≥95% TYK2 degradation enabling biologics‑like pathway blockade; Phase 1 to quantify blood/skin degradation and explore pathway biomarkers; PoC likely in psoriasis thereafter .
  • Spend trajectory: Cash burn to increase with steeper ramp into 2026 as clinical activity scales; STAT6 will be the larger spend driver vs TYK2 near‑term .

Estimates Context

  • We attempted to retrieve S&P Global (Capital IQ) consensus EPS and revenue for Q2–Q4 2024, but the API returned a daily request limit error, so estimates were unavailable at the time of analysis. We therefore do not present beat/miss comparisons versus consensus for this quarter. We will refresh and update when access is restored [SPGI error].

Key Takeaways for Investors

  • Well‑funded to execute: $851M cash and runway into mid‑2027 supports multiple 2025‑2026 readouts and Phase 2b initiations, reducing financing overhang in the near term .
  • Near‑term catalysts: June 2025 KT-621 Phase 1 SAD/MAD data and Q4 2025 Phase 1b AD biomarker/early efficacy readout are likely stock drivers; early May 2025 new program disclosure adds pipeline optionality .
  • Clear development plan: Parallel Phase 2b in AD (Q4 2025) and asthma (Q1 2026) designed to accelerate to multiple Phase 3 programs if doses are confirmed, mirroring pathways seen with upstream biologics .
  • Deeper spend ahead of inflections: R&D increased to $71.8M in Q4 with adjusted cash R&D of $65M; investors should anticipate higher burn into 2026 as trials scale, particularly for STAT6 .
  • Partner validation: Sanofi’s expansion to dose‑ranging Phase 2b in HS/AD (KT‑474) with 2026 primaries supports the TPD approach and provides an additional, partnered clinical catalyst path .
  • Strategy focus: Management continues to prioritize immunology with intent to partner oncology programs beyond Phase 1, focusing capital on the highest‑value near‑term opportunities .
  • Risk framing: Revenue remains collaboration‑driven and variable; clinical risk centers on translating ≥90% STAT6/TYK2 degradation into “dupilumab‑like” efficacy in patients; Phase 1b/2b execution will be critical .