Kymera Therapeutics (KYMR) risk factors, FY2025 10-K

Risks Related to Our Financial Position and Need for Additional Capital

1. 01We are a clinical stage company and that may make it difficult for our stockholders to evaluate the success of our business to date and to assess our future viability
2. 02We have incurred significant operating losses since our inception and anticipate that we will incur continued losses for the foreseeable future27% rewritten
3. 03incur additional costs associated with continuing to operate as a public company

Risks Related to Future Financial Condition

1. 04We 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
2. 05the costs of establishing or contracting for sales and marketing capabilities if we obtain regulatory clearances to market our current or future product candidates
3. 06Raising additional capital may cause dilution to our stockholders, restrict our operations or require us to relinquish rights to our technologies or product candidates
4. 07We will continue to incur increased costs as a result of operating as a public company, and our management will be required to devote substantial time to new compliance initiatives
5. 08potential or actual cross-defaults in other credit agreements, credit arrangements or operating or financing agreements

Risks Related to Preclinical and Clinical Development

1. 09our ability to maintain a continued acceptable safety profile of our product candidates following approval
2. 10Our approach to the discovery and development of product candidates is novel and unproven, which makes it difficult to predict the time, cost of development and likelihood of successfully developing any products
3. 11We depend heavily on the successful development of our lead programs. We cannot be certain that we will be able to obtain regulatory approval for, or successfully commercialize, any of our current or future product candidates
4. 12the FDA or applicable foreign regulatory agency may change its approval policies or adopt new regulations
5. 13If 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
6. 14Interim, “topline,” and preliminary data from our clinical trials that we announce or publish from time to time may change as more patient data become available and are subject to audit and verification procedures that could result in material changes in the final data
7. 15A pandemic, epidemic, or outbreak of an infectious disease may materially and adversely affect our business and our financial results and could cause a disruption to the development of our product candidates
8. 16Our 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
9. 17our reputation may suffer36% rewritten

Risks Related to Regulatory Approval

1. 18the approval policies or regulations of the FDA or comparable foreign regulatory authorities may significantly change in a manner rendering our clinical data insufficient for approval
2. 19If we experience delays in obtaining approval or if we fail to obtain approval of our current or future product candidates, the commercial prospects for our current or future product candidates may be harmed and our ability to generate revenues will be materially impaired
3. 20We may seek Orphan Drug Designation for certain of our current or future product candidates, and we may be unsuccessful or may be unable to maintain the benefits associated with Orphan Drug Designation, including the potential for market exclusivity
4. 21injunctions or the imposition of civil or criminal penalties61% rewritten

Risks Related to Foreign Regulatory Approval and Foreign Markets

1. 22Even if we receive marketing approval for our current or future product candidates in the U.S., we may never receive regulatory approval to market our current or future product candidates outside of the U.S
2. 23Our future growth may depend, in part, on our ability to penetrate foreign markets, where we would be subject to additional regulatory burdens and other risks and uncertainties that could materially adversely affect our business
3. 24business interruptions resulting from geo-political actions, including war and terrorism
4. 25We may in the future conduct clinical trials for current or future product candidates outside the U.S., and the FDA and comparable foreign regulatory authorities may not accept data from such trials
5. 26Governments outside the United States tend to impose strict price controls, which may adversely affect our revenues, if any

Risks Related to Compliance with Healthcare and Other Regulations

1. 27Even if we are able to commercialize any current or future product candidates, such drugs may become subject to unfavorable pricing regulations or third-party coverage and reimbursement policies, which would harm our business
2. 28There may be significant delays in obtaining coverage and reimbursement for newly approved drugs, and coverage may be more limited than the purposes for which the drug is approved by the FDA or similar regulatory authorities outside of the United States
3. 29Current and future healthcare legislative reform measures may have a material adverse effect on our business and results of operations
4. 30the availability of capital
5. 31If we fail to comply with environmental, health and safety laws and regulations, we could become subject to fines or penalties or incur costs that could have a material adverse effect on the success of our business
6. 32Our employees, principal investigators, CROs and consultants may engage in misconduct or other improper activities, including non-compliance with regulatory standards and requirements and insider trading laws
7. 33restructuring of our operations, any of which could adversely affect our ability to operate our business and our results of operationsNew

Risks Related to Commercialization

1. 34Even if we receive marketing approval for our current or future product candidates, our current or future product candidates may not achieve broad market acceptance, which would limit the revenue that we generate from their sales
2. 35the willingness of patients to pay out-of-pocket in the absence of third-party coverage
3. 36We face substantial competition, which may result in others discovering, developing or commercializing drugs before or more successfully than we do
4. 37Product liability lawsuits against us could cause us to incur substantial liabilities and could limit commercialization of any current or future product candidates that we may develop
5. 38the inability to commercialize any current or future product candidates that we may develop
6. 39unforeseen costs and expenses associated with creating an independent sales and marketing organization

Risks Related to Our Dependence on Third Parties

1. 40form relationships with other entities, some of which may be our competitors
2. 41The third parties upon whom we rely for the supply of the API, drug product, and starting materials used in our product candidates are limited in number, and the loss of any of these suppliers could significantly harm our business61% rewritten
3. 42We may depend on collaborations with other third parties for the development and commercialization of our product candidates in the future. If our collaborations are not successful, we may not be able to capitalize on the market potential of these product candidatesNew
4. 43collaborators may not pay milestones and royalties due to the company in a timely manner41% rewritten
5. 44Our manufacturing process needs to comply with FDA regulations relating to the quality and reliability of such processes. Any failure to comply with relevant regulations could result in delays in or termination of our preclinical and clinical programs and suspension or withdrawal of any regulatory approvals
6. 45If our third-party manufacturers use hazardous and biological materials in a manner that causes injury or violates applicable law, we may be liable for damages

Risks Related to Intellectual Property

1. 46We own patent applications and patents related to our TPD technology and our novel bifunctional degrader compounds, including claims to compositions of matter, pharmaceutical compositions, methods of use, methods of treatment, and other related methods
2. 47The patent position of biotechnology and pharmaceutical companies generally is highly uncertain, involves complex legal and factual questions and has in recent years been the subject of much litigation26% rewritten
3. 48We will not obtain patent or other intellectual property protection for all current or future product candidates in all jurisdictions throughout the world, and we may not be able to adequately enforce our intellectual property rights even in the jurisdictions where we seek protection
4. 49We may not obtain or grant licenses or sublicenses to intellectual property rights in all markets on equally or sufficiently favorable terms with third parties
5. 50If we fail to comply with our obligations in our current or any future agreements under which we may license intellectual property rights from third parties or otherwise experience disruptions to our business relationships with our licensors, we could lose license rights that are important to our business
6. 51the ownership of inventions and know-how resulting from the joint creation or use of intellectual property by our current or future licensors and us and our partners
7. 52Intellectual property rights do not guarantee commercial success of current or future product candidates or other business activities. Numerous factors may limit any potential competitive advantage provided by our intellectual property rights

Risks Related to Patent Protection

1. 53Changes in patent law could diminish the value of patents in general, thereby impairing our ability to protect our current or future product candidates
2. 54As is the case with other biopharmaceutical companies, our success is heavily dependent on intellectual property, particularly patents. Obtaining and enforcing patents in the biopharmaceutical industry involve both technological and legal complexity and are therefore costly, time consuming and inherently uncertain

Risks Related to Our Trademarks, Trade Names and Trade Secrets

1. 55In addition, during the trademark registration process, we may receive Office Actions from the USPTO or from comparable agencies in foreign jurisdictions refusing registration of our trademarks
2. 56If we are unable to adequately protect and enforce our trade secrets, our business and competitive position would be harmed

Risks Related to Intellectual Property Litigation and Infringement Claims

1. 57We may initiate, become a defendant in, or otherwise become party to lawsuits to protect or enforce our intellectual property rights, which could be expensive, time-consuming and unsuccessful83% rewritten
2. 58there could be public announcements of the results of hearings, motions or other interim proceedings or developments, and, if securities analysts or investors perceive these results to be negative, it could have a substantial adverse effect on the price of our common stock28% rewritten
3. 59impaired or delayed, which could in turn significantly harm our business. Even if we obtain a license, it may be nonexclusive, thereby giving our competitors access to the same technologies licensed to usNew
4. 60We may not identify relevant third-party patents or may incorrectly interpret the relevance, scope or expiration of a third-party patent, which might subject us to infringement claims or adversely affect our ability to develop and market our current or future product candidates

Risks Related to Employee Matters and Managing Growth

1. 61Our future success depends on our ability to retain key executives and to attract, retain and motivate qualified personnel
2. 62We will need to continue to develop and expand our company, and we may encounter difficulties in managing this development and expansion, which could disrupt our operations
3. 63We or the third parties upon whom we depend may be adversely affected by unforeseen global events, natural disasters, and our business continuity and disaster recovery plans may not adequately protect us from a serious disaster

Risks Related to Data and Privacy

1. 64Our internal computer systems, or those of our third-party CROs or other contractors or consultants, may fail or suffer security breaches, which could result in a material disruption of our current or future product candidates’ development programs
2. 65We may be unable to adequately protect our information systems from cyberattacks, security incidents, or compromises, which could result in the disclosure of confidential or proprietary information, including personal data, damage our reputation, and subject us to significant financial and legal exposure41% rewritten
3. 66Issues relating to the use of artificial intelligence and machine learning could adversely affect our business and operating results87% rewritten

Risks Related to Our Common Stock

1. 67The price of our common stock has been and may continue to be volatile and fluctuate substantially, and investors may lose all or part of their investment
2. 68the other factors described in this “Risk Factors” section
3. 69Unstable global economic and geopolitical conditions may have serious adverse consequences on our business, financial condition, stock price and results of operations48% rewritten
4. 70If securities analysts do not publish research or reports about our business or if they publish negative evaluations of our stock, the price of our stock could decline
5. 71Our executive officers, directors, principal stockholders and their affiliates exercise significant influence over our company, which will limit your ability to influence corporate matters and could delay or prevent a change in corporate control
6. 72We have issued a substantial number of warrants and equity awards from our equity plans which are exercisable into shares of our common stock which could result in substantial dilution to the ownership interests of our existing stockholders21% rewritten
7. 73Sales of a substantial number of shares of our common stock in the public market could cause our stock price to fall
8. 74Because we do not anticipate paying any cash dividends on our capital stock in the foreseeable future, capital appreciation, if any, will be investors’ sole source of gain
9. 75We may be at an increased risk of securities class action litigation

Risks Related to Tax

1. 76Changes in tax law may adversely affect us or our investors61% rewritten
2. 77Our ability to utilize our net operating loss carryforwards and certain other tax attributes to offset future taxable income may be subject to certain limitations, and, as a result, unavailable to reduce our future tax liability

Risks Related to Our Controls and Reporting Requirements

1. 78If we fail to maintain proper and effective internal control over financial reporting, our operating results and our ability to operate our business could be harmed
2. 79Our disclosure controls and procedures may not prevent or detect all errors or acts of fraud

Risks Related to Our Charter and Bylaws

1. 80Anti-takeover provisions under our charter documents and Delaware law could delay or prevent a change of control, which could limit the market price of our common stock and may prevent or frustrate attempts by our stockholders to replace or remove our current management
2. 81the authority of the board of directors to issue preferred stock on terms determined by the board of directors without stockholder approval and which preferred stock may include rights superior to the rights of the holders of common stock
3. 82Our amended and restated bylaws designate specific courts as the exclusive forum for certain litigation that may be initiated by our stockholders, which could limit our stockholders’ ability to obtain a favorable judicial forum for disputes with us
4. 83The U.S. Congress or the current administration may make substantial changes to fiscal, tax, and other federal policies that may adversely affect our business56% rewritten