Kymera Therapeutics (KYMR) is poised to become a leading company in multiple inflammation and immunology indications, with upside for further stock momentum, RBC Capital Markets said in a Tuesday note.
The company's early phase 1b results for its KT-621 trial surpassed RBC analysts' high expectations, and several days after the data in atopic dermatitis were released, investors mostly agree that it met almost all of the endpoints, the analysts said. They added that the strong early results reduce the negative risks of becoming an oral drug alternative.
The drug demonstrated potential effects on biomarkers related to other type-2 inflammation diseases aside from atopic dermatitis, the analysts noted. After its planned phase 2b trial on dose ranging, the company could potentially target other diseases apart from atopic dermatitis and asthma, notably eosinophilic chronic obstructive pulmonary disease, which could generate an estimated $1.3 billion opportunity in the US, the analysts said.
RBC adjusted its probability of success estimates for Kymera's atopic dermatitis and asthma programs and integrated an additional probability-adjusted indication for the drug candidate, resulting in an updated estimate potential peak US sales of $6.2 billion.
RBC maintained the company's stock rating at outperform and raised the price target to $103 from $70.
Price: 85.31, Change: -0.38, Percent Change: -0.44
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