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Investing.com -- Kymera Therapeutics’ growing roster of partnerships continues to reinforce its long-term value, according to Oppenheimer, despite a setback in one of its programs.
The firm reiterated its Outperform rating while lowering its price target to $53 from $56.
“Yesterday, KYMR made several important announcements. The highest profile being the speed bump in their Sanofi (NASDAQ:SNY) partnership on IRAK4,” said Oppenheimer.
Sanofi has opted to discontinue the clinical-stage KT-474 in favor of an earlier-stage candidate, KT-485, which is expected to enter clinical trials next year.
While this shift delays development, Oppenheimer sees a limited financial impact. “We are encouraged that Sanofi remains committed to KYMR and IRAK4 by selecting the next generation candidate to advance.”
In a separate move, Kymera also unveiled a new partnership with Gilead (NASDAQ:GILD) to develop a preclinical molecular glue targeting CDK2.
Oppenheimer said the deal brings “another large partner to the table, while showcasing the breadth of KYMR’s protein degradation expertise.”
The collaboration includes up to $85 million in upfront payments and up to $750 million in milestone payments.
The core value driver remains KT-621, Kymera’s STAT6-targeting program. “STAT6 remains [the] primary driver to the story,” the analysts said, citing its potential to rival blockbuster drugs like Sanofi and Regeneron’s dupilumab.
They added that the next clinical milestone for STAT6 will be atopic dermatitis patient data, which is expected in the fourth quarter.
Oppenheimer adjusted its model to reflect the timeline shift in the IRAK4 program, modestly reduced probability of success, and dilution from a $250 million equity offering.
Nonetheless, the firm concluded that Kymera’s partnerships with Sanofi and Gilead continue to “drive value.”