Kymera Therapeutics' (KYMR) STAT6 degrader KT621 showed promising phase 1 results, marking a key de-risking milestone for its immunology and inflammation pipeline, Morgan Stanley said.

Kymera reported on Monday that KT621 achieved complete STAT6 degradation in blood and skin in a phase 1 trial, demonstrating potential to treat Th2 diseases such as atopic dermatitis. The drug was well tolerated, with a safety profile comparable to placebo and no serious or recurring treatment-related adverse events.

In the phase 1 study of 118 healthy volunteers, Kymera tested single and multiple doses of KT621, achieving over 90% STAT6 degradation in blood and skin. Morgan Stanley said in a Monday research note that this outcome strengthens confidence in KT621's potential to address major inflammatory conditions.

"We see the healthy volunteer update as an important event for Kymera's efforts with STAT6, as the data suggests the ability to define a broad therapeutic window with a potent molecule," according to the note.

Kymera is actively recruiting for its phase 1b trial in moderate to severe atopic dermatitis, with data expected in late 2025. The company plans two parallel phase 2b trials in atopic dermatitis and asthma, slated for Q4 2025 and Q1 2026, respectively, to accelerate development and enable dose selection for subsequent phase 3 studies.

Morgan Stanley believes the update "enables a runway for KT621 to compete as a highly viable therapy for large commercial opportunities."

The firm upgraded Kymera to overweight from equal weight and raised its price target to $79 from $49.

Shares of Kymera were up nearly 12% in recent Tuesday trading.

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