What’s trending in the pharmaceutical sector today? In a fresh press release, Kymera Therapeutics (NASDAQ:KYMR) disclosed positive results from its clinical trial for a skin condition treatment the company is working on with French drugmaker Sanofi (NASDAQ:SNY). Now, KYMR stock is surging higher this morning. But it’s not just because of the positive trial results. Traders are also excited because Sanofi is ready to move onto the next phase of research.
Kymera Therapeutics is based in Massachusetts and much smaller company than global pharmaceutical giant Sanofi. So, the company certainly stands to benefit if Sanofi agrees to move forward with KT-474, a proposed treatment for hidradenitis suppurativa (HS) and atopic dermatitis (AD), two skin conditions.
As it turns out, Sanofi has committed to advance the clinical trials for KT-474 to Phase 2. This news comes on the heels of positive results from the Phase 1 evaluation of the treatment candidate.
The press release states that “clinical endpoints addressing disease burden and symptoms demonstrate a highly competitive profile after four weeks of dosing” with KT-474. Moreover, “substantial responses” were found in a majority of HS and AD patients.
What’s Happening With KYMR Stock?
Given this double dose of good news, it shouldn’t be too shocking that KYMR stock is heading higher this morning. However, it was undoubtedly a nice surprise for Kymera investors to find shares up 20% earlier today.
Meanwhile, SNY stock is up about 2% as of this writing. This result might seem counterintuitive. However, Kymera is the main beneficiary of this arrangement between a pharmaceutical giant and a much smaller company. Therefore, the muted move in Sanofi shares is understandable.
As you might expect, Kymera Therapeutics President and CEO Nello Mainolfi is thrilled with these positive developments. “This is a pivotal moment for Kymera and for the field of protein degradation,” the executive declares in the press release.
Together, Mainolfi says Kymera and Sanofi “have demonstrated [the] clinical impact” of KT-474. There has certainly been an impact on KYMR stock as well, with investors enjoying substantial gains today.
On the date of publication, David Moadel did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.