Gilead Sciences, Inc. ( GILD ) and Kymera Therapeutics, Inc ( KYMR ). on Wednesday entered into an exclusive option and license agreement to accelerate the development and commercialization of a novel molecular glue degrader (MGD) program targeting cyclin-dependent kinase 2 (CDK2), with broad oncology treatment potential.

CDK2-directed MGDs are a new type of drug designed to remove CDK2, a key contributor to tumor growth, rather than just inhibiting its function.

Kymera can receive up to $750 million in total payments, including up to $85 million in upfront and potential option exercise payments.

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In addition, Kymera may receive tiered royalties ranging from the high single-digits to the mid-teens on net product sales under the collaboration. Kymera will lead all research activities for the CDK2 program.

If Gilead exercises its option to exclusively license the program, Gilead will have global rights to develop, manufacture, and commercialize all products resulting from the collaboration.

The transaction with Kymera is expected to reduce Gilead’s GAAP and non-GAAP 2025 EPS by approximately $0.02-$0.03.

The core of this collaboration lies in the innovative approach of MGDs. Unlike traditional inhibitors that merely block the function of disease-driving proteins, MGDs work by selectively eliminating these proteins.

As Flavius Martin, MD, Executive Vice President, Research, Gilead Sciences ( GILD ), stated, this mechanism “aligns within our oncology scientific framework where we evaluate therapeutic agents that selectively target and kill cancer cells with minimal impact on healthy tissue.”

Nello Mainolfi, PhD, Founder, President and CEO, Kymera Therapeutics ( KYMR ), highlighted that their “highly specific, orally active, CDK2 molecular glue degraders have demonstrated a compelling preclinical profile.”

Concurrently, Kymera Therapeutics ( KYMR ) announced an update on its IRAK4 partnership with Sanofi SA ( SNY ) .

Sanofi ( SNY ) has informed Kymera that KT-485/SAR447971, an oral, highly potent, and selective development candidate targeting IRAK4 for immuno-inflammatory diseases that Kymera has discovered and characterized through preclinical studies, has been selected to advance into clinical studies.

Following preclinical work supporting its development potential, KT-485 is being prioritized for development under the companies’ existing IRAK4 collaboration and is expected to advance into Phase 1 testing next year.

Based on the planned development of KT-485, Sanofi ( SNY ) will not advance KT-474.

Sanofi ( SNY ) was conducting Phase 2 trials for hidradenitis suppurativa and atopic dermatitis indications.

In conjunction with its plans to advance KT-485, Sanofi ( SNY ) also communicated its decision to exercise its participation election right for the IRAK4 target under the companies’ collaboration agreement terms.

Under the agreement, Kymera achieved a $20 million milestone in the second quarter of 2025 related to preclinical activities associated with KT-485.

Kymera can receive up to $975 million of potential clinical, regulatory, and commercial milestones related to KT-485, including an additional milestone upon the start of Phase 1 clinical testing.

Price Action: SNY stock is down 0.76% at $48.05, KYMR stock is down 4.54% at $45, and GILD stock is down 0.28% at $106.90 during the premarket session at last check Wednesday.

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