Today we’re talking about Kymera Therapeutics and their IPO which looks to kick off trading
on Friday. Plus, I’ll also give some updates on the 3 IPOs we covered earlier in the week,
including some analysis on how I look at which of 3 might be the best in my personal opinion.
So stay tuned for IPO This Week’s mid-week edition.
Welcome back to Healthy, Wealthy, and Wise where we continue our laser-like focus on
all of the IPOs that come out. Today’ll be a middle of the week update from this week’s
IPO This Week episode where we’ll talk about a late addition to this week’s calendar,
Kymera Therapeutics. But before we get into this new IPO, let’s start with some brief
updates on the 3 other companies we talked about earlier this week. If you missed this
week’s episode, definitely check it out for a more thorough overview of these companies;
I’ll link it for you in the description. First up is Harmony Biosciences, who began
trading today under the ticker HRMY. Harmony is the biotech company we talked about that
already has a product on the market called Wakix which is used to treat narcolepsy; in
fact, it’s one of only 7 medications approved to treat the condition and the only one not
to be scheduled as a controlled substance. Demand in the company’s IPO resulted in
the offering being upsized to an additional 600,000 shares with pricing coming in at $24,
above the 20-23 dollar target range. Out of the gate, the stock traded at just under $40
per share. Then also we had Inhibrx start its public
trading today under the ticker, INBX. Inhibrx is another biotech, but unlike Harmony who
has a product selling on the market, their pipeline is in much earlier stages. The company’s
mission is in targeting treatments for different types of cancer. Pricing was set yesterday
at $17, which was the midpoint of what it had previously proposed. However they raised
more money than was anticipated as the offering was upsized by 1 million more shares. When
public trading started today, the stock was trading at up $22.10.
And then we also talked about Nano-X imaging earlier this week. Right now we’re still
waiting for the official IPO to happen, most likely with pricing being set tomorrow with
trading to begin on Friday as we originally anticipated. Once it goes public, it will
trade under the symbol NNOX. So nothing new with Nano X at this point.
After I released last week’s video, I was asked in the comments, which of those 3 stocks
I like best. Now I always qualify my response by saying that I’m not recommending for
anyone to make any moves based on my thoughts because as you know, I’m not a financial
advisor…and am also not able to predict the future…which isn’t fair! But to share
my opinion on how I looked at those 3 IPOs, I really wasn’t enamored with any of them.
Now I did pick which would one I would prefer of the 3, which probably won’t come as a
surprise to those who have watched the channel for awhile…and that pick was Harmony Biosciences.
And I made those comments on Monday before trading began, so none of that hindsight is
20-20 stuff. The reason I went with Harmony is because it’s already got a product out
there making money and it looks to expand what it can be used for to potentially make
even more money with it. The reservation I had with them was not that I don’t think
it’s a good company, but that it seemed to be priced at a premium market cap for what
the company currently is. Now, the demand was obviously there when the pricing was set,
and then it jumped out of the gate, so we’ll see what happens. As far as Inhibrx and Nano-X,
my concern is that they aren’t making any money right now, and in the case of Inhibrx,
that could be years away, with them being an early stage biotech. And that’s not an
indictment against them; it’s just the nature of where they are in their development. Nano-X
still has to get their product approved by the FDA and then has to overcome the ubiquity
of X-ray technology and explain why their product should be given a shot. And it may
end up being a much superior product, but it will take time and huge marketing dollars
to hopefully become a success. And even if there Nanox system ends up being better than
X-rays, who is gonna stop using the X-ray machines they already spent a ton of money
on? And on top of that having to purchase a new system? Especially when the norm is
getting an X-ray and that’s not likely to change anytime soon. Anyway, I hope this little
bit of analysis gives you a better idea on how I look at companies when making a decision
on whether to buy them or not. I would love to hear your thoughts on my reasoning of how
I came up with Harmony and which of the 3 you would prefer and why.
Okay, moving on…we have our new IPO to talk about for this week, Kymera Therapeutics,
ticker KYMR. Let’s see if this company can unseat my personal choice of Harmony as my
personal pick of the week. The company is a preclinical biotech that plans to raise
$125 million at a $772 million market cap. The early-stage biotech focuses on developing
treatments for skin and immune system conditions including atopic dermatitis, a medical condition
that makes your skin red and itchy, generally caused by exposure to allergens such as pollen,
and also by stress, dry skin and infection. The global market for atopic dermatitis was
slightly over $4 billion in 2016 and according to a GlobalData research report is expected
to grow to $18.3 billion by 2027. I just want to emphasize that the biotech
is at a pre-clinical stage for its pipeline, meaning that they have not entered into any
phase 1 trials. That means they are even behind where Inhibrx is in their development. So
at this point, we really have no data on how their candidates are progressing. And it goes
without saying, that they have no sales or revenue at this point, and it could be years
before they do…and that’s assuming that at least one of their candidates are successful
in the lengthy clinical trial and approval process.
The majority of the proceeds from the IPO will go to advancing its pipeline consisting
of 3 clinical phase 1 trials. Kymera looks to have its IPO on Thursday with pricing expected
to be set in a range of 16-18 dollars with its public trading to debut alongside Nano-X
on Friday. Alright so, take a guess; do you think Kymera
will overtake Harmony as my pick of the week? I’ll give you 10 seconds for you to think
it over…and if you guess quickly and have a little time left over, definitely use that
time to be sure to hit that ‘like’ button. Okay, answer in? Alright, obviously, no, it
won’t overtake Harmony for me. There’s just too many unknowns with the company because
of the stage of development they’re at. They could have the most well-oiled machine
in their operations, but even under the most optimal of conditions, they are so far away
in bringing anything to market that the risk is too high for me. I think with biotechs
in early stages like this, you can keep an eye on them for awhile and see how they progress
without jumping in on day 1. It’s just so unlikely that if you miss out on day 1, that
you won’t have an opportunity for a better price down the line. And you also won’t
have to tie your money up for a significant amount of time before the company starts producing
something to push the stock higher. Remember these are just my personal thoughts, you should
do what’s best for you; I respect everyone’s decision to make the move that they feel is
best for them.
Okay, let’s wrap it here for today. We’ll be back again early next week for IPO This
Week where we’ll look at the upcoming companies going public and that now includes our newest
coverage on upcoming SPACs. If you want to be sure to get that information as soon as
it’s released, you’ll want to turn on that notification bell. If you don’t see
that bell, it’s probably because you haven’t subscribed yet…so do that first, after all
it’s the best way to make sure you don’t miss out on hearing about the next Amazon
or Tesla. Plus it’s free. So with that, have a good rest of your week. Thank you for
watching, and until next time, have a great day!