Street Calls of the Week
Investing.com --Analysts initiated coverage of Kymera Therapeutics with an Outperform rating and $70 price target, citing confidence in the company’s lead experimental drug for atopic dermatitis.
The brokerage said Kymera’s KT-621, which targets the STAT6 pathway, has shown promising early data and could offer an oral alternative to Sanofi and Regeneron’s blockbuster Dupixent, now a mainstay in treating inflammatory skin conditions.
KT-621 is expected to show compelling proof-of-concept in the upcoming phase 1b readout, as per analysts given strong reductions in STAT6 biomarkers and clean safety data so far.
If approved, KT-621 could address what analysts see as a $4.8 billion U.S. market opportunity in atopic dermatitis and asthma.
Dupixent’s global sales are expected to reach $26 billion by 2031, leaving room for a new oral option to gain share, they added.
Beyond its lead program, Kymera is also developing degraders for other immune and inflammatory diseases, including KT-579 for lupus and rheumatoid arthritis and KT-485, a next-generation IRAK4 degrader in partnership with Sanofi .
The analysts said these programs could help establish Kymera as a leader in the emerging degrader drug space.
While longer-term safety and efficacy remain to be proven, the brokerage said Kymera’s profile offers “considerable upside potential” if trial results later this year confirm early signals.