US-based immunotherapy developer Kymera Therapeutics has filed for a $100m initial public offering that could enable pharmaceutical firms Merck & Co, Amgen, Pfizer, Sanofi and Vertex Pharmaceuticals to exit.
Incubated by venture capital firm Atlas Venture, Kymera is working on small molecule drugs intended to combat cancer and inflammatory diseases by degrading disease-causing proteins.
Part of the IPO proceeds will advance KT-474, which is being developed to treat rheumatoid arthritis, an inflammatory skin disease called HS and a skin condition known as atopic dermatitis, through phase 1 clinical trials.
Additional proceeds will go to phase 1 trials for a second product candidate, IRAKIMiD, for lymphoma, and a third, STAT3, that is being developed for liquid and solid tumours as well as autoimmune and fibrotic diseases.
Biotechnology Value Fund and Redmile Group co-led Kymera’s last funding round, a $102m series C that closed in March this year and which included Pfizer and 6 Dimensions Capital, the investment fund backed by pharmaceutical company WuXi AppTec, according to the IPO filing.
The round included Wellington Management, Bain Capital Life Sciences, Rock Springs Capital, Atlas Venture, Bessemer Venture Partners (BVP) and funds managed by Janus Henderson Investors and BlackRock.
Vertex made an equity investment in the company in May 2019 that was sized at $20m according to the filing, in connection with a research and development agreement.
Kymera had previously secured $65m in a late 2018 series B round co-led by Pfizer’s investment arm, Pfizer Ventures, and 6 Dimensions Capital.
Merck’s MRL Ventures Fund, Sanofi subsidiary Sanofi Ventures, Hatteras Venture Partners, BVP and Aju IB Investment also took part in the series B round, as did all the participants in Kymera’s series A.
Eli Lilly and Amgen had co-led the company’s $30m series A round the year before through corporate venturing subsidiaries Lilly Ventures and Amgen Ventures, participating alongside Atlas Venture.
Atlas Venture, the owner of a 26.8% stake, remains Kymera’s largest shareholder, followed by Vertex (7.3%), Lilly Ventures (6.5%), Pfizer, 6 Dimensions Capital and BVP (5.2% each).
The offering is slated to take place on the Nasdaq Global Select Market and Morgan Stanley, BofA Securities, Cowen and Company and Guggenheim Securities have been appointed underwriters.
