Why Kymera Therapeutics Stock Crushed it This Week

According to data compiled by S&P Global Market Intelligence, Kymera Therapeutics (NASDAQ: KYMR) notched an almost 23% share price gain across this week. That made it a standout in the ever-volatile biotech sector. Investors were cheered by a pair of announcements published by the company.

Patients dosed in early-stage trial

Kymera is a clinical-stage biotech that specializes in a mechanism known as targeted protein degradation in its medicines. On Tuesday, the company delivered encouraging news from the laboratory, writing in a press release it had initiated dosing in a phase 1b clinical trial of its investigational drug KT-621.

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That medication is intended to treat severe atopic dermatitis (AD), more popularly known as eczema. This is a common disorder that presents in dry and inflamed skin. Kymera anticipates that it will be able to report data from the trial at some point in the fourth quarter of this year.

CEO Nello Mainolfi said in a press release, "The advancement of KT-621 in patients with AD is an important step in the development of this exciting program and underscores the potential of our unique technology to revolutionize the treatment of complex immuno-inflammatory diseases through oral medicines with biologics-like profiles."

A sense of mystery

Two days later, Kymera said that it will divulge a new oral immunology program along with its first-quarter earnings report. It provided few details save for the fact that the investigational treatment focuses on "a high value undrugged target for multiple autoimmune and rheumatic diseases." This will be unveiled in a video webcast starting at 10 a.m. ET on Friday, May 9.

Clinical-stage biotechs are always something of a gamble for investors. Still, it's heartening that Kymera is moving KT-621 along in the lab. Since AD is a common disorder, the drug could be quite the revenue generator for the ambitious company.

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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool recommends Kymera Therapeutics. The Motley Fool has a disclosure policy.