Kymera Therapeutics, Inc.

Kymera Therapeutics, Inc. (NASDAQ: KYMR) is a biotechnology firm. The company is focused on identifying and developing minor molecule treatments that exploit the body's natural protein degradation machinery to break down disease-causing proteins selectively. Pegasus, the company's targeted protein degradation technology, enables it to find small molecule protein degraders with activity against disease-causing proteins all across the body.

Key Highlights

• The company reported YoY decline of 48.55% in revenue to USD 9.62 million in Q1FY22 (ended March 31, 2022) compared to USD 18.70 million in Q1FY21.
• In Q1FY22, KYMR net loss increased to USD 39.24 million from USD 12.96 million in Q1FY21.  
• As of March 31, 2022, the company had cash and cash equivalents of USD 420.81 million and total outstanding debt of USD 2.01 million.
• KYMR’s net margin for Q1FY22 was -381.3%, significantly lower than the industry median of -154.8%.
• KYMR doesn’t carry any debt in its balance sheet as of March 31, 2022.
• KYMR presented new preclinical results on May 5, 2022, demonstrating that STAT3 degradation reduces Th17 inflammation and is active in a preclinical animal model of CNS inflammation and that IRAK4 degradation blocks multiple innate immune system signaling pathways across different immune cell types more effectively than kinase inhibitors. The data will be presented in two posters at the American Association of Immunologists (AAI) Annual Meeting 2022, held in Portland, Oregon, from May 6 to 10, 2022.
• KYMR’s Q1FY22 cash cycle of 7 days is significantly lower than the industry median of 78 days.
• Stock is currently trading below its crucial short-term (50-day) and long-term (200-day) SMA support level, a bearish indicator.
• The stock has made a new 52-week low today.

Conclusion: Considering the company’s strong topline, no visibility into profitability, technical indicators, and associated risks. We recommend a "Watch" rating on the stock at the current price of USD 16.71, down 8.97%, as of May 11, 2022, at 12:34 PM PDT.

Technical Price Chart (as of May 11, 2022, at 12:34 PM PDT). Source: REFINITIV, Analysis by Kalkine Group

Technical Analysis Summary:

*Closing price as of May 11, 2022 at 12:34 PM PDT.

Investors can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario.

Technical Indicators Defined: -

Support: A level where-in the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.

Resistance: A level where-in the stock prices tend to find resistance when they are rising, and uptrend may take a pause due to profit booking or selling interest.

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.

Note 1: The reference data in this report has been partly sourced from REFINITIV.  

Note 2: Investment decision should be made depending on the investors' appetite on upside potential, risks, holding duration, and any previous holdings. Investors can consider exiting from the stock if the Target Price mentioned as per the valuation has been achieved and subject to the factors discussed above. 

Note 3: The report publishing date is as per the Pacific Time Zone.

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