Kymera Therapeutics Announces Proposed Public Offering

Rhea-AI Summary

Kymera Therapeutics (NASDAQ: KYMR), a clinical-stage biopharmaceutical company focusing on targeted protein degradation, has announced a proposed public offering of $200 million in common stock and pre-funded warrants. The company plans to grant underwriters a 30-day option for an additional $30 million in shares. Morgan Stanley, J.P. Morgan, TD Cowen, and Stifel are acting as joint book-running managers. Kymera intends to use the proceeds to advance its pipeline of preclinical and clinical degrader programs, for working capital, and potentially for in-licensing or acquiring complementary businesses or technologies. The offering is subject to market conditions and is being made through a shelf registration statement filed with the SEC.

Positive

• Potential to raise $200 million through public offering, with an additional $30 million option
• Funds to be used for advancing pipeline of preclinical and clinical degrader programs
• Opportunity for expansion through potential acquisitions or in-licensing of complementary technologies

Negative

• Potential dilution of existing shareholders' equity
• Increased financial obligations and pressure to deliver results
• Market uncertainty may affect the success and pricing of the offering

Insights

Financial Analyst

Kymera Therapeutics' proposed $200 million public offering of common stock and pre-funded warrants, with a potential $30 million additional option, is a significant capital raise for the clinical-stage biopharmaceutical company. This move suggests a strong push for growth and development in their targeted protein degradation (TPD) pipeline. The involvement of major underwriters like Morgan Stanley and J.P. Morgan lends credibility to the offering. However, investors should note that this will likely result in dilution of existing shares. The company's intention to use proceeds for pipeline advancement and potential acquisitions indicates a strategic expansion plan, which could be positive for long-term growth but may not yield immediate returns. The market's reaction will largely depend on investor confidence in Kymera's ability to effectively utilize this capital infusion.

Biotech Industry Expert

Kymera's focus on targeted protein degradation (TPD) positions them in a cutting-edge area of drug development. This substantial capital raise could significantly accelerate their research and development efforts, potentially bringing novel therapies to market faster. The company's strategy to address large patient populations with unmet needs is promising, as it targets both medical impact and commercial viability. However, the biotech sector is notoriously risky, with many clinical-stage companies failing to bring products to market. Investors should carefully consider Kymera's clinical pipeline progress and the potential of TPD technology. The company's ability to use this capital effectively in advancing their preclinical and clinical programs will be important for their long-term success and justification of this dilutive offering.

Market Research Analyst

This offering comes at a time when the biotech sector is facing challenges, including tighter funding conditions and increased scrutiny on clinical trial outcomes. Kymera's ability to secure this offering with reputable underwriters suggests strong institutional interest in their TPD platform. The flexible structure of the offering, including pre-funded warrants, may appeal to a broader range of investors. However, the success of this raise will largely depend on market conditions and investor appetite for clinical-stage biotech stocks. The company's focus on "large patient populations with significant need and clear commercial opportunity" aligns with current market trends favoring therapies with broader applicability. Investors should monitor how this capital infusion impacts Kymera's cash runway and their ability to reach key clinical milestones, which will be critical for maintaining market confidence and supporting future valuations.

WATERTOWN, Mass., Aug. 19, 2024 (GLOBE NEWSWIRE) -- Kymera Therapeutics, Inc. (NASDAQ: KYMR), a clinical-stage biopharmaceutical company advancing a new class of small molecule medicines using targeted protein degradation (TPD), today announced that it has commenced an underwritten public offering of $200.0 million of shares of its common stock and, in lieu of common stock to certain investors, pre-funded warrants to purchase shares of its common stock. All of the shares of common stock and pre-funded warrants to be sold in this offering are being offered by Kymera. In addition, Kymera intends to grant the underwriters a 30-day option to purchase up to an additional $30.0 million of shares of its common stock at the public offering price per share, less underwriting discounts and commissions. The proposed offering is subject to market and other conditions, and there can be no assurance as to whether or when the offering may be completed, or as to the actual size or terms of the offering.

Kymera intends to use the net proceeds from the offering to continue to advance its pipeline of preclinical and clinical degrader programs that are designed to address large patient populations with significant need and clear commercial opportunity, and for working capital and other general corporate purposes. Kymera may also use a portion of the net proceeds to in-license, acquire or invest in complementary businesses or technologies to continue to build its pipeline, research and development capabilities and its intellectual property position.

Morgan Stanley, J.P. Morgan, TD Cowen and Stifel are acting as joint book-running managers for the offering.

The securities described above are being offered pursuant to an automatically effective shelf registration statement on Form S-3 (No. 333-259955) that was filed with the U.S. Securities and Exchange Commission (the “SEC”) on October 1, 2021. This offering is being made only by means of a prospectus supplement and an accompanying prospectus that form a part of the registration statement.

A preliminary prospectus supplement related to and describing the terms of the offering will be filed with the SEC and will be available on the SEC’s website located at www.sec.gov. Copies of the preliminary prospectus supplement and an accompanying prospectus related to the offering may also be obtained, when available, from Morgan Stanley & Co. LLC, Attention: Prospectus Department, 180 Varick Street, 2nd Floor, New York, NY 10014, or by email at prospectus@morganstanley.com; J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, by email at prospectus-eq_fi@jpmchase.com and postsalemanualrequests@broadridge.com; TD Securities (USA) LLC, 1 Vanderbilt Avenue, New York, NY 10017, by telephone at (855) 495-9846, or by email at TD.ECM_Prospectus@tdsecurities.com; and Stifel, Nicolaus & Company, Incorporated, Attention: Prospectus Department, One Montgomery Street, Suite 3700, San Francisco, CA 94104, by telephone at (415) 364-2720 or by email at syndprospectus@stifel.com.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of that state or jurisdiction.

About Kymera Therapeutics
Kymera is a clinical-stage biotechnology company pioneering the field of targeted protein degradation (TPD) to develop medicines that address critical health problems and have the potential to dramatically improve patients’ lives. Kymera is deploying TPD to address disease targets and pathways inaccessible with conventional therapeutics. Having advanced the first degrader into the clinic for immunological diseases, Kymera is focused on delivering oral small molecule degraders to provide a new generation of convenient, highly effective therapies for patients with these conditions. Kymera is also progressing degrader oncology programs that target undrugged or poorly drugged proteins to create new ways to fight cancer. Founded in 2016, Kymera has been recognized as one of Boston’s top workplaces for the past several years.

Cautionary Note Regarding Forward-Looking Statements
Statements in this press release may contain “forward-looking statements” that are subject to substantial risks and uncertainties. Forward-looking statements contained in this press release may be identified by the use of words such as “may,” “will,” “should,” “expect,” “plan,” “anticipate,” “could,” “intend,” “target,” “project,” “contemplate,” “believe,” “estimate,” “predict,” “potential” or “continue” or the negative of these terms or other similar expressions, and include, but are not limited to, statements regarding the size and expected gross proceeds from the offering, completion and timing of the public offering, the anticipated use of proceeds from the offering and the expectation to grant the underwriters a 30-day option to purchase additional shares. Any forward-looking statements are based on Kymera’s current expectations, forecasts, and assumptions and are subject to a number of risks and uncertainties that could cause actual outcomes and results to differ materially and adversely from those set forth in or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to, risks and uncertainties related to market conditions and satisfaction of customary closing conditions related to the proposed public offering. For a discussion of other risks and uncertainties, and other important factors, any of which could cause Kymera’s actual results to differ from those contained in the forward-looking statements in this press release, see the section entitled “Risk Factors” in Kymera’s Annual Report on Form 10-K for the year ended December 31, 2023 and its Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2024, as well as in the preliminary prospectus supplement related to the proposed public offering. Forward-looking statements contained in this press release are based on information available to Kymera as of the date hereof and are made only as of the date of this release. Kymera undertakes no obligation to update such information except as required under applicable law. These forward-looking statements should not be relied upon as representing Kymera’s views as of any date subsequent to the date of this press release. In light of the foregoing, investors are urged not to rely on any forward-looking statement in reaching any conclusion or making any investment decision about any securities of Kymera.

Investor & Media Contact: 

Justine Koenigsberg
Vice President, Investor Relations
investors@kymeratx.com
media@kymeratx.com 
857-285-5300

FAQ

What is the size of Kymera Therapeutics' proposed public offering?

Kymera Therapeutics (KYMR) has announced a proposed public offering of $200 million in common stock and pre-funded warrants, with an additional 30-day option for underwriters to purchase up to $30 million in shares.

How does Kymera Therapeutics plan to use the funds from the public offering?

Kymera Therapeutics intends to use the net proceeds to advance its pipeline of preclinical and clinical degrader programs, for working capital, general corporate purposes, and potentially for in-licensing or acquiring complementary businesses or technologies.

Who are the underwriters for Kymera Therapeutics' public offering?

Morgan Stanley, J.P. Morgan, TD Cowen, and Stifel are acting as joint book-running managers for Kymera Therapeutics' (KYMR) proposed public offering.

What is the focus of Kymera Therapeutics' research and development?

Kymera Therapeutics (KYMR) is a clinical-stage biopharmaceutical company advancing a new class of small molecule medicines using targeted protein degradation (TPD) technology.