Hold Rating for Kymera Therapeutics Due to Uncertainties in KT-621 Development and Need for Clinical De-risking

In a report released today, Tazeen Ahmad from Bank of America Securities maintained a Hold rating on Kymera Therapeutics (KYMR – Research Report), with a price target of $44.00.

Tazeen Ahmad’s rating is based on the current stage of Kymera Therapeutics’ KT-621 development and the associated uncertainties. The company is conducting a phase 1 study of KT-621, an oral STAT6 degrader, in healthy volunteers, with data expected in June 2025. The primary focus is on safety and tolerability, while secondary endpoints include pharmacokinetics and pharmacodynamics. However, the variability in biomarker data among healthy individuals may limit the interpretability of these results, necessitating further patient data to determine clinical benefits.
Tazeen Ahmad also notes that while the management aims to achieve results comparable to dupilumab studies, the translation of biomarker data to patient outcomes remains crucial. Key opinion leaders have expressed interest in oral alternatives for moderate-to-severe atopic dermatitis, highlighting the potential of KT-621. Despite this interest, the current lack of standalone value for KT-621 and the need for initial clinical de-risking contribute to the Hold rating, with a price objective of $44.

Ahmad covers the Healthcare sector, focusing on stocks such as Incyte, Sarepta Therapeutics, and PTC Therapeutics. According to TipRanks, Ahmad has an average return of -2.9% and a 46.41% success rate on recommended stocks.