Kymera Therapeutics Announces Closing of Upsized $275 Million Public Offering and Full Exercise of Underwriters’ Option to Purchase Additional Shares

Rhea-AI Summary

Kymera Therapeutics, Inc. (NASDAQ: KYMR) announced the closing of its upsized underwritten public offering of $275 million of shares of its common stock, raising approximately $316.2 million. Morgan Stanley, J.P. Morgan, TD Cowen, and UBS Investment Bank acted as joint lead bookrunning managers for the offering.

Insights

Financial Analyst

Kymera Therapeutics' recent upsized underwritten public offering signifies a substantial capital infusion, which is critical for a clinical-stage biopharmaceutical company. The successful exercise of the underwriters' option to purchase additional shares, alongside the issuance of pre-funded warrants, indicates strong investor confidence. With the gross proceeds of approximately $316.2 million, Kymera is expected to bolster its financial runway, which is particularly important for funding ongoing research and development activities in the targeted protein degradation (TPD) space.

The pricing strategy for the common stock and pre-funded warrants is noteworthy, as it provides a near-equivalent value for investors opting for either security. This approach could potentially widen the pool of interested parties. However, the impact of this capital raise on existing shareholders' value must be considered, as dilution is an inherent consequence of such offerings. The engagement of reputable financial institutions as bookrunning managers could be indicative of a well-structured and executed offering.

Market Research Analyst

Targeted protein degradation (TPD) is an emerging field in drug development that offers a novel approach to tackling diseases by selectively degrading disease-causing proteins. Kymera Therapeutics is positioning itself as a leader in this innovative field and the capital raised through this offering is likely to accelerate its pipeline development. The TPD market is rapidly growing and Kymera’s enhanced financial position could facilitate strategic partnerships, expand research capabilities and potentially quicken the pace to market for its therapies.

Investor sentiment surrounding biotech firms, particularly those in cutting-edge sectors like TPD, often hinges on clinical trial outcomes and regulatory milestones. Thus, Kymera's capital raise might also be interpreted as preparation for such critical junctures, signaling to the market that the company is proactively managing its resources to sustain momentum through pivotal phases of drug development.

Biotech Industry Analyst

For Kymera Therapeutics, the raised capital through an upsized public offering is a strategic move to advance its position in the competitive biotech industry. The use of a shelf registration statement on Form S-3 expedites the process of capital raising, demonstrating Kymera’s agility in seizing market opportunities to fund its operations. The TPD technology they are pioneering holds promise for addressing unmet medical needs, which can be a game-changer if their clinical trials yield positive results.

It is imperative to monitor how efficiently Kymera allocates the raised funds towards its R&D efforts. The biotech sector is characterized by high burn rates and the ability to manage capital effectively can be a differentiator between companies that succeed and those that falter. The long-term value creation for Kymera will hinge on their ability to translate this financial boost into tangible clinical progress and, ultimately, marketable products.

WATERTOWN, Mass., Jan. 09, 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 the closing of its upsized underwritten public offering of $275 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. Kymera sold and issued 3,884,158 shares of its common stock, which includes 1,633,663 shares sold and issued upon the exercise in full by the underwriters of their option to purchase additional shares of common stock and, in lieu of common stock to certain investors, pre-funded warrants to purchase 8,640,594 shares of its common stock in the offering. The shares of common stock were sold at a public offering price of $25.25 per share and the pre-funded warrants were sold at a public offering price of $25.2499 per pre-funded warrant, which represents the per share public offering price of each share of common stock less the $0.0001 per share exercise price for each pre-funded warrant. The gross proceeds to Kymera from the offering were approximately $316.2 million, before deducting underwriting discounts and commissions and estimated offering expenses payable by Kymera

Morgan Stanley, J.P. Morgan, and TD Cowen acted as joint lead bookrunning managers for the offering. UBS Investment Bank also acted as a bookrunning manager.

The securities described above were offered pursuant to an automatically effective shelf registration statement on Form S-3 that was filed with the U.S. Securities and Exchange Commission (SEC) on October 1, 2021. The offering was made only by means of a prospectus supplement and an accompanying prospectus that form a part of the registration statement. Copies of the final prospectus supplement related to and describing the terms of the offering was filed with the SEC and is available on the SEC’s website located at www.sec.gov. Copies of the final prospectus supplement and an accompanying prospectus related to the offering may also be obtained 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 telephone at (866) 803-9204, or via email at prospectus-eq_fi@jpmchase.com; Cowen and Company, LLC, 599 Lexington Avenue, New York, NY 10022, by telephone at (833) 297-2926, or by email at Prospectus_ECM@cowen.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, province, territory 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 Therapeutics (Nasdaq: KYMR) 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.

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

Media Contact:  Todd Cooper  Senior Vice President, Corporate Affairs media@kymeratx.com 857-285-5300

FAQ

What is the recent announcement from Kymera Therapeutics, Inc.?

Kymera Therapeutics, Inc. (NASDAQ: KYMR) closed an upsized underwritten public offering of $275 million of shares of its common stock, raising approximately $316.2 million.

How much did Kymera Therapeutics, Inc. raise through the public offering?

Kymera Therapeutics, Inc. raised approximately $316.2 million through the public offering.

Who were the joint lead bookrunning managers for the offering?

Morgan Stanley, J.P. Morgan, TD Cowen, and UBS Investment Bank acted as joint lead bookrunning managers for the offering.