10-Q 1 kymr-20220331.htm 10-Q 10-Q
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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

FORM 10-Q

 

(Mark One)

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended March 31, 2022

OR

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from ___________________ to ___________________

Commission File Number: 001-39460

 

KYMERA THERAPEUTICS, INC.

(Exact Name of Registrant as Specified in its Charter)

 

 

Delaware

81-2992166

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer
Identification No.)

 

 

200 Arsenal Yards Blvd., Suite 230

Watertown, Massachusetts

02472

(Address of principal executive offices)

(Zip Code)

 

Registrant’s telephone number, including area code: (857) 285-5300

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading

Symbol(s)

 

Name of each exchange on which registered

Common Stock, par value $0.0001 per share

 

KYMR

 

The Nasdaq Global Market

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

 

 

Accelerated filer

 

 

 

 

 

Non-accelerated filer

 

 

Smaller reporting company

 

 

 

 

 

 

 

 

 

 

 

 

Emerging growth company

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No ☒

As of April 29, 2022, the registrant had 51,724,179 shares of common stock, $0.0001 par value per share, outstanding.

 

 


 

Summary of the Material and Other Risks Associated with Our Business

We are a biopharmaceutical company with a limited operating history and have not generated any revenue to date from drug sales, and may never become profitable.
We have incurred significant operating losses in recent periods and anticipate that we will incur continued losses for the foreseeable future.
We will need to raise substantial additional funding. If we are unable to raise capital when needed or on attractive terms, we would be forced to delay, scale back or discontinue some of our product candidate development programs or future commercialization efforts.
We are very early in our development efforts and our IRAK4, IRAKIMiD, STAT3 and MDM2 programs are still in preclinical or early clinical development. If we are unable to advance them into and through the clinic for safety or efficacy reasons or commercialize our product candidates or experience significant delays in doing so, our business will be materially harmed.
Our approach to the discovery and development of product candidates based on our PegasusTM platform is novel and unproven, which makes it difficult to predict the time, cost of development, and likelihood of successfully developing any products.
Business interruptions resulting from the ongoing coronavirus disease (COVID-19) pandemic or similar public health crises could cause a disruption to our supply chain or the development of our product candidates and adversely impact our business.
We may not be successful in our efforts to identify or discover additional product candidates or we may expend our limited resources to pursue a particular product candidate or indication and fail to capitalize on product candidates or indications that may be more profitable or for which there is a greater likelihood of success.
If we experience delays or difficulties in the initiation or enrollment of patients in clinical trials, our receipt of necessary regulatory approvals could be delayed or prevented.
Our current or future product candidates may cause adverse or other undesirable side effects that could delay or prevent their regulatory approval, limit the commercial profile of an approved label, or result in significant negative consequences following marketing approval, if any.
Even if we receive regulatory approval for any of our current or future product candidates, we will be subject to ongoing obligations and continued regulatory review, which may result in significant additional expense.
We rely, and expect to continue to rely, on third parties to conduct our ongoing and planned clinical trials for our current and future product candidates. If these third parties do not successfully carry out their contractual duties, comply with regulatory requirements or meet expected deadlines, we may not be able to obtain marketing approval for or commercialize our current and potential future product candidates and our business could be substantially harmed.
If we are unable to obtain and maintain patent and other intellectual property protection for our technology and product candidates or if the scope of the intellectual property protection obtained is not sufficiently broad, our competitors could develop and commercialize technology and drugs similar or identical to ours, and our ability to successfully commercialize our technology and drugs may be impaired.

i


 

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q, or Quarterly Report, contains forward-looking statements which are made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical facts contained in this Quarterly Report are forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as “may”, “will”, “should”, “expects”, “intends”, “plans”, “anticipates”, “believes”, “estimates”, “predicts”, “potential”, “continue” or the negative of these terms or other comparable terminology. These statements are not guarantees of future results or performance and involve substantial risks and uncertainties. Forward-looking statements in this Quarterly Report include, but are not limited to, express or implied statements about:

the initiation, timing, progress, results, and cost of our research and development programs, and our current and future preclinical and future clinical studies, including statements regarding the timing of initiation and completion of studies or trials and related preparatory work, the period during which the results of the trials will become available, and our research and development programs;
our ability to continue to construct PegasusTM, our drug discovery platform, and to enable a rational and effective drug discovery and development engine;
the timing and the success of preclinical and clinical studies under our IRAK4, IRAKIMiD, STAT3 and MDMD2 programs;
our plans to submit investigational new drug applications to the FDA for current and future product candidates;
the subsequent initiation of planned clinical trials;
our ability to identify research priorities and apply a risk-mitigated strategy to efficiently discover and develop product candidates, including by applying learnings from one program to other programs and from one modality to our other modalities;
our potential ability to manufacture our drug substances, delivery vehicles, and product candidates for preclinical use, for clinical trials and on a larger scale for commercial use, if approved;
the ability and willingness of our third-party strategic collaborators to continue research and development activities relating to our development candidates and product candidates;
our ability to obtain funding for our operations necessary to complete further development and commercialization of our product candidates;
our ability to obtain and maintain regulatory approval of our product candidates;
our ability to commercialize our products, if approved;
the pricing and reimbursement of our product candidates, if approved;
the implementation of our business model, and strategic plans for our business, product candidates, and technology;
the scope of protection we are able to establish and maintain for intellectual property rights covering our product candidates and technology;
estimates of our future expenses, revenues, capital requirements, and our needs for additional financing;
the potential benefits of strategic collaboration agreements, our ability to enter into strategic collaborations or arrangements, and our ability to attract collaborators with development, regulatory and commercialization expertise;
future agreements with third parties in connection with the commercialization of product candidates and any other approved product;
the size and growth potential of the markets for our product candidates, and our ability to serve those markets;
our financial performance;
the rate and degree of market acceptance of our product candidates;
regulatory developments in the United States and foreign countries;
our ability to contract with third-party suppliers and manufacturers and their ability to perform adequately;
our ability to produce our products or product candidates with advantages in turnaround times or manufacturing cost;
the success of competing therapies that are or may become available;

ii


 

our ability to attract and retain key scientific or management personnel;
the impact of laws and regulations;
developments relating to our competitors and our industry;
the effect of the ongoing COVID-19 pandemic, including mitigation efforts and economic effects, on any of the foregoing or other aspects of our business operations, including but not limited to our preclinical studies and future clinical trials;
other risks and uncertainties, including those listed under the caption “Risk Factors.”

Any forward-looking statements in this Quarterly Report reflect our current views with respect to future events and with respect to our future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements. Factors that may cause actual results to differ materially from current expectations include, among other things, those described under Part II, Item 1A, “Risk Factors” and elsewhere in this Quarterly Report. Given these uncertainties, you should not place undue reliance on these forward-looking statements. Except as required by law, we assume no obligation to update or revise these forward-looking statements for any reason, even if new information becomes available in the future.

All of our forward-looking statements are as of the date of this Quarterly Report only. In each case, actual results may differ materially from such forward-looking information. We can give no assurance that such expectations or forward-looking statements will prove to be correct. An occurrence of or any material adverse change in one or more of the risk factors or risks and uncertainties referred to in this Quarterly Report or included in our other public disclosures or our other periodic reports or other documents or filings filed with or furnished to the Securities and Exchange Commission, or the SEC, could materially and adversely affect our business, prospects, financial condition and results of operations. Except as required by law, we do not undertake or plan to update or revise any such forward-looking statements to reflect actual results, changes in plans, assumptions, estimates or projections or other circumstances affecting such forward-looking statements occurring after the date of this Quarterly Report, even if such results, changes or circumstances make it clear that any forward-looking information will not be realized. Any public statements or disclosures by us following this Quarterly Report that modify or impact any of the forward-looking statements contained in this Quarterly Report will be deemed to modify or supersede such statements in this Quarterly Report.

We may from time to time provide estimates, projections and other information concerning our industry, the general business environment, and the markets for certain diseases, including estimates regarding the potential size of those markets and the estimated incidence and prevalence of certain medical conditions. Information that is based on estimates, forecasts, projections, market research or similar methodologies is inherently subject to uncertainties, and actual events, circumstances or numbers, including actual disease prevalence rates and market size, may differ materially from the information reflected in this Quarterly Report. Unless otherwise expressly stated, we obtained this industry, business information, market data, prevalence information and other data from reports, research surveys, studies and similar data prepared by market research firms and other third parties, industry, medical and general publications, government data, and similar sources, in some cases applying our own assumptions and analysis that may, in the future, prove not to have been accurate.

iii


 

Table of Contents

 

 

 

Page

PART I.

FINANCIAL INFORMATION

1

Item 1.

Financial Statements (Unaudited)

1

 

Condensed Consolidated Balance Sheets

1

 

Condensed Consolidated Statements of Operations and Comprehensive Loss

2

 

Condensed Consolidated Statements of Stockholders’ Equity

3

 

Condensed Consolidated Statements of Cash Flows

4

 

Notes to Unaudited Condensed Consolidated Financial Statements

5

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

18

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

27

Item 4.

Controls and Procedures

27

PART II.

OTHER INFORMATION

27

Item 1.

Legal Proceedings

27

Item 1A.

Risk Factors

27

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

69

Item 3.

Defaults Upon Senior Securities

69

Item 4.

Mine Safety Disclosures

69

Item 5.

Other Information

69

Item 6.

Exhibits

70

Signatures

71

 

iv


 

PART I—FINANCIAL INFORMATION

Item 1. Financial Statements.

KYMERA THERAPEUTICS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except for share and per share amounts)

(Unaudited)

 

 

 

March 31,
2022

 

 

December 31,
2021

 

Assets

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

33,733

 

 

$

47,976

 

Marketable securities (Note 4)

 

 

387,079

 

 

 

394,442

 

Contract assets

 

 

1,263

 

 

 

135

 

Prepaid expenses and other current assets

 

 

9,307

 

 

 

8,720

 

Total current assets

 

$

431,382

 

 

$

451,273

 

Marketable securities, non-current (Note 4)

 

 

102,478

 

 

 

125,187

 

Property and equipment, net (Note 6)

 

 

11,759

 

 

 

11,881

 

Right-of-use assets, operating leases

 

 

9,307

 

 

 

9,426

 

Other non-current assets

 

 

2,022

 

 

 

2,022

 

Restricted cash

 

 

6,112

 

 

 

6,116

 

Total assets

 

$

563,060

 

 

$

605,905

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

2,567

 

 

$

4,005

 

Accrued expenses (Note 8)

 

 

20,777

 

 

 

22,971

 

Deferred revenue

 

 

60,852

 

 

 

61,739

 

Operating lease liabilities

 

 

2,480

 

 

 

2,461

 

Finance lease liabilities

 

 

1,087

 

 

 

1,138

 

Other current liabilities

 

 

576

 

 

 

228

 

Total current liabilities

 

$

88,339

 

 

$

92,542

 

Non-current liabilities

 

 

 

 

 

 

Deferred revenue, net of current portion

 

 

31,823

 

 

 

39,295

 

Operating lease liabilities, net of current portion

 

 

12,978

 

 

 

13,224

 

Finance lease liabilities, net of current portion

 

 

927

 

 

 

1,140

 

Other non-current liabilities

 

 

273

 

 

 

66

 

Total liabilities

 

$

134,340

 

 

$

146,267

 

Stockholders’ equity:

 

 

 

 

 

 

Common stock, $0.0001 par value; 150,000,000 shares authorized as of March 31, 2022 and December 31, 2021,
   
51,716,194 and 51,573,924 shares issued at March 31, 2022 and December 31, 2021, respectively; 51,692,666 
   and
51,536,181 shares outstanding at March 31, 2022 and December 31, 2021, respectively

 

 

5

 

 

 

5

 

Additional paid-in capital

 

 

697,597

 

 

 

689,275

 

Accumulated deficit

 

 

(265,666

)

 

 

(228,982

)

Accumulated other comprehensive loss

 

 

(3,216

)

 

 

(660

)

Total stockholders’ equity

 

 

428,720

 

 

 

459,638

 

Total liabilities and stockholders’ equity

 

$

563,060

 

 

$

605,905

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

1


 

KYMERA THERAPEUTICS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

Three Months Ended March 31, 2022 and 2021

(In thousands, except for share and per share amounts)

(Unaudited)

 

 

 

Three Months Ended
March 31,

 

 

 

 

2022

 

 

2021

 

 

Collaboration Revenue—from related parties

 

$

9,622

 

 

$

18,702

 

 

Operating expenses:

 

 

 

 

 

 

 

Research and development

 

$

35,944

 

 

$

25,962

 

 

General and administrative

 

 

10,611

 

 

 

5,909

 

 

Total operating expenses

 

 

46,555

 

 

 

31,871

 

 

Loss from operations

 

 

(36,933

)

 

 

(13,169

)

 

Other income (expense):

 

 

 

 

 

 

 

Interest and other income

 

 

290

 

 

 

118

 

 

Interest and other expense

 

 

(41

)

 

 

(24

)

 

Total other income:

 

 

249

 

 

 

94

 

 

Net loss

 

$

(36,684

)

 

$

(13,075

)

 

Other comprehensive loss:

 

 

 

 

 

 

 

Unrealized (loss) gain on marketable securities

 

 

(2,556

)

 

 

115

 

 

Total comprehensive loss

 

$

(39,240

)

 

$

(12,960

)

 

 

 

 

 

 

 

 

 

Net loss attributable to common stockholders

 

$

(36,684

)

 

$

(13,075

)

 

Net loss per share attributable to common stockholders, basic
   and diluted

 

$

(0.71

)

 

$

(0.29

)

 

Weighted average common stock outstanding, basic and diluted

 

 

51,651,125

 

 

 

44,649,572

 

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

2


 

KYMERA THERAPEUTICS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

For the three months ended March 31, 2021 and 2022

(In thousands, except for share amounts)

(Unaudited)

 

 

 

Common Stock

 

Additional
Paid in

 

Accumulated

 

Accumulated
Other
Comprehensive

 

Total
Stockholders'

 

 

Shares

 

Value

 

Capital

 

Deficit

 

Gain/(Loss)

 

Equity

 

Balance at December 31, 2020

 

44,482,186

 

$

4

 

$

412,777

 

$

(128,765

)

$

(128

)

$

283,888

 

Exercise of stock options

 

378,762

 

 

 

 

1,147

 

 

 

 

 

 

1,147

 

Vesting restricted stock

 

18,428

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation expense

 

 

 

 

 

3,172

 

 

 

 

 

 

3,172

 

Unrealized gain on marketable securities

 

 

 

 

 

 

 

 

 

115

 

 

115

 

Net Loss

 

 

 

 

 

 

 

(13,075

)

 

 

 

(13,075

)

Balance at March 31, 2021

 

44,879,376

 

$

4

 

$

417,096

 

$

(141,840

)

$

(13

)

$

275,247

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at December 31, 2021

 

51,536,181

 

 

5

 

 

689,275

 

 

(228,982

)

 

(660

)

 

459,638

 

Exercise of stock options

 

142,270

 

 

 

 

449

 

 

 

 

 

 

449

 

Vesting restricted stock

 

14,215

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation expense

 

 

 

 

 

7,873

 

 

 

 

 

 

7,873

 

Unrealized loss on marketable securities

 

 

 

 

 

 

 

 

 

(2,556

)

 

(2,556

)

Net Loss

 

 

 

 

 

 

 

(36,684

)

 

 

 

(36,684

)

Balance at March 31, 2022

 

51,692,666

 

$

5

 

$

697,597

 

$

(265,666

)

$

(3,216

)

$

428,720

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

3


 

KYMERA THERAPEUTICS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

For the three months ended March 31, 2022 and 2021

(In thousands)

(Unaudited)

 

 

 

Three Months Ended
March 31,

 

 

 

2022

 

 

2021

 

Operating activities

 

 

 

 

 

 

Net loss

 

$

(36,684

)

 

$

(13,075

)

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

 

 

 

Stock-based compensation expense

 

 

7,873

 

 

 

3,172

 

Depreciation and amortization

 

 

687

 

 

 

485

 

Premiums and discounts on available-for-sale marketable securities

 

 

1,175

 

 

 

1,279

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

Prepaid expenses and other assets

 

 

(586

)

 

 

(816

)

Receivables—due from related parties

 

 

 

 

 

(279

)

Contract asset—due from related parties

 

 

(1,128

)

 

 

(22

)

Accounts payable

 

 

(1,437

)

 

 

4,150

 

Accrued expenses and other current liabilities

 

 

(2,278

)

 

 

235

 

Deferred revenue

 

 

(8,359

)

 

 

(17,822

)

Operating lease right-of-use assets

 

 

119

 

 

 

95

 

Operating lease liabilities

 

 

(227

)

 

 

(368

)

Other assets and liabilities

 

 

550

 

 

 

143

 

Net cash used in operating activities

 

$

(40,295

)

 

$

(22,823

)

Investing activities

 

 

 

 

 

 

Purchase of property and equipment, net

 

 

(482

)

 

 

(164

)

Purchases of investments

 

 

(80,118

)

 

 

(16,013

)

Maturities of investments

 

 

106,463

 

 

 

60,500

 

Net cash provided by investing activities

 

$

25,863

 

 

$

44,323

 

Financing activities

 

 

 

 

 

 

Proceeds from stock option exercises

 

 

449

 

 

 

1,147

 

Payments of offering costs in connection with initial public offering

 

 

 

 

 

(397

)

Payments on finance leases

 

 

(264

)

 

 

(155

)

Net cash provided by financing activities

 

$

185

 

 

$

595

 

Net (decrease) increase in cash, cash equivalents and restricted cash

 

 

(14,247

)

 

 

22,095

 

Cash, cash equivalents and restricted cash at beginning of period

 

 

54,092

 

 

 

32,593

 

Cash, cash equivalents and restricted cash at end of period

 

$

39,845

 

 

$

54,688

 

Supplemental disclosure of cash flow activities

 

 

 

 

 

 

Cash paid for interest

 

$

46

 

 

$

24

 

Supplemental disclosure of noncash investing activities

 

 

 

 

 

 

Property and equipment purchases included in accounts payable and accrued expenses

 

$

126

 

 

$

259

 

 

 

 

 

 

 

 

 

The following table provides a reconciliation of the cash, cash equivalents, and restricted cash balances as of each of the periods shown above:

 

 

 

March 31,

 

 

 

2022

 

 

2021

 

Cash and cash equivalents

 

$

33,733

 

 

$

53,098

 

Restricted cash

 

 

6,112

 

 

 

1,590

 

Total cash, cash equivalents, and restricted cash

 

$

39,845

 

 

$

54,688

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

4


 

KYMERA THERAPEUTICS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1. Organization and Nature of Business

Kymera Therapeutics, Inc., together with its subsidiary Kymera Securities Corporation, is referred to on a consolidated basis as the “Company”. The Company is a biopharmaceutical company focused on discovering and developing small molecule therapeutics that selectively degrade disease-causing proteins by harnessing the body’s own natural cellular process, a method known as targeted protein degradation. The Company has devoted its efforts principally to research and development since formation. The Company has not yet completed product development, filed for or obtained regulatory approvals for any products, nor verified the market acceptance and demand for such products. As a result, the Company is subject to a number of risks common to emerging companies in the biotech industry. Principal among these risks are the uncertainties of the product discovery and development process, dependence on key individuals, development of the same or similar technological innovations by the Company’s competitors, protection of proprietary technology, compliance with government regulations and approval requirements, the Company’s ability to access capital and uncertainty of market acceptance of products.

The Company has historical net losses and anticipates that it will continue to incur losses for the foreseeable future and had an accumulated deficit of $265.7 million as of March 31, 2022. The Company has funded these losses principally through issuance of preferred stock, convertible notes, common stock, including its initial public offering and concurrent private placement completed in August 2020 (“IPO”), follow-on offering and concurrent private placement completed in July 2021 ("Follow-on Offering"), and from cash proceeds received in connection with the Company’s collaboration agreements with Vertex Pharmaceuticals Incorporated (“Vertex”) and Genzyme Corporation (“Sanofi”) (see Note 5). The Company expects to continue to incur operating losses and negative cash flows until such time as it generates a level of revenue that is sufficient to support its cost structure.

As of March 31, 2022, the Company had cash, cash equivalents and marketable securities of $523.3 million. The Company believes these cash, cash equivalents and marketable securities will be sufficient to fund its operations and capital expenditure requirements through at least twelve months from the issuance of these condensed consolidated financial statements.

The Company expects to finance the future research and development costs of its product portfolio with its existing cash, cash equivalents and marketable securities, or through strategic financing opportunities that could include, but are not limited to future offerings of its equity, collaboration agreements, or the incurrence of debt. However, there is no guarantee that any of these strategic or financing opportunities will be executed or realized on favorable terms, if at all, and some could be dilutive to existing stockholders. If the Company fails to obtain additional future capital, it may be unable to complete its planned preclinical studies and clinical trials.

Initial Public Offering

On August 20, 2020, the Company’s registration statement on Form S-1 relating to its initial public offering of its common stock was declared effective by the Securities and Exchange Commission (“SEC”). In the IPO, which closed on August 25, 2020, the Company issued and sold 9,987,520 shares of common stock, including full exercise of the underwriters’ over-allotment option to purchase an additional 1,302,720 shares, at a public offering price of $20.00 per share and the aggregate gross proceeds before deducting underwriting discounts and commissions, and other estimated offering expenses payable by the Company, were approximately $199.8 million. Concurrent with the IPO, the Company issued and sold 676,354 shares of common stock at $20.00 per share in a private placement to Vertex and the aggregate proceeds were $13.5 million.

Follow-on Public Offering

On July 6, 2021, the Company completed a follow-on offering of its common stock and issued and sold 5,468,250 shares of common stock, including full exercise of the underwriters’ over-allotment option to purchase an additional 713,250 shares, at a public offering price of $47.00 per share. The aggregate gross proceeds before deducting underwriting discounts and commissions, and other estimated offering expenses payable by the Company were approximately $257.0 million. Concurrent with the follow-on offering, the Company issued and sold 49,928 shares of common stock at $47.00 per share in a private placement to Vertex and the aggregate proceeds were $2.3 million.

2. Summary of Significant Accounting Policies

The accompanying condensed consolidated financial statements reflect the application of certain significant accounting policies as described in this note, and elsewhere in the accompanying condensed consolidated financial statements and notes.

5


 

Principles of Consolidation

The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiary Kymera Securities Corporation. All intercompany transactions and balances have been eliminated in consolidation.

Basis of Presentation

The unaudited interim condensed consolidated financial statements of the Company included herein have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) as found in the Accounting Standards Codification (“ASC”), Accounting Standards Update (“ASU”) of the Financial Accounting Standards Board (“FASB”) and the rules and regulations of the SEC. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted from this report, as is permitted by such rules and regulations. Accordingly, these condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and the notes thereto for the year ended December 31, 2021 included in the Company’s Annual Report on Form 10-K, filed with the SEC on February 24, 2022.

The unaudited interim condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements as of and for the year ended December 31, 2021, and, in the opinion of management, reflect all adjustments necessary, all of which were normal and recurring, for the fair statement of the Company’s financial position as of March 31, 2022, and the results of operations and cash flows for the three months ended March 31, 2022 and 2021. The results for the three months ended March 31, 2022 are not necessarily indicative of the results for the year ended December 31, 2022 or for any future period.

Significant Accounting Policies

The significant accounting policies used in preparation of these condensed consolidated financial statements for the three months ended March 31, 2022 are consistent with those discussed in Note 2 to the consolidated financial statements in the 2021 Annual Report on Form 10-K.

3. Fair Value Measurements

The following table presents information about the Company’s financial assets measured at fair value on a recurring basis and indicates the level of the fair value hierarchy utilized to determine such fair values as of March 31, 2022 and December 31, 2021 (in thousands):

 

 

 

Fair Value Measurements at
March 31, 2022:

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents

 

 

 

 

 

 

 

 

 

 

 

 

Money market fund

 

$

26,857

 

 

$

 

 

$

 

 

$

26,857

 

Marketable securities, current

 

 

 

 

 

 

 

 

 

 

 

 

US treasuries

 

 

150,382

 

 

 

 

 

 

 

 

 

150,382

 

US government agencies

 

 

49,357

 

 

 

 

 

 

 

 

 

49,357

 

Corporate bonds

 

 

 

 

 

187,340

 

 

 

 

 

 

187,340

 

Marketable securities, non-current

 

 

 

 

 

 

 

 

 

 

 

 

US treasuries

 

 

16,287

 

 

 

 

 

 

 

 

 

16,287

 

US government agencies

 

 

39,096

 

 

 

 

 

 

 

 

 

39,096

 

Corporate bonds

 

 

 

 

 

47,095

 

 

 

 

 

 

47,095

 

Restricted cash

 

 

6,112

 

 

 

 

 

 

 

 

 

6,112

 

Total

 

$

288,091

 

 

$

234,435

 

 

$

 

 

$

522,526

 

 

6


 

 

 

 

Fair Value Measurements at
December 31, 2021:

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents

 

 

 

 

 

 

 

 

 

 

 

 

Money market fund

 

$

43,182

 

 

$

 

 

$

 

 

$

43,182

 

Marketable securities, current

 

 

 

 

 

 

 

 

 

 

 

 

US treasuries

 

 

169,481

 

 

 

 

 

 

 

 

 

169,481

 

US government agencies

 

 

32,170

 

 

 

 

 

 

 

 

 

32,170

 

Corporate bonds

 

 

 

 

 

192,791

 

 

 

 

 

 

192,791

 

Marketable securities, non-current

 

 

 

 

 

 

 

 

 

 

 

 

US treasuries

 

 

17,172

 

 

 

 

 

 

 

 

 

17,172

 

US government agencies

 

 

47,363

 

 

 

 

 

 

 

 

 

47,363

 

Corporate bonds

 

 

 

 

 

60,652

 

 

 

 

 

 

60,652

 

Restricted cash

 

 

6,116

 

 

 

 

 

 

 

 

 

6,116

 

Total

 

$

315,484

 

 

$

253,443

 

 

$

 

 

$

568,927

 

 

During the three months ended March 31, 2022 and the year ended December 31, 2021, there were no transfers between Level 1, Level 2 and Level 3.

4. Marketable Securities

The following table summarizes the available-for-sale debt securities held at March 31, 2022 and December 31, 2021 (in thousands):

 

Description

 

Amortized
Cost