Form 4: Baker Bros. Funds Make Significant Investment in Kymera Therapeutics Through Underwritten Offering

Baker Bros. Advisors LP and its affiliated funds, including 667, L.P. and Baker Brothers Life Sciences, L.P., acquired over 1.3 million shares and prefunded warrants in Kymera Therapeutics, Inc. through an underwritten offering that closed on June 30, 2025.

Summary

• Baker Bros. Advisors LP, along with its affiliated funds 667, L.P. and Baker Brothers Life Sciences, L.P., reported significant acquisitions in Kymera Therapeutics, Inc. (KYMR).
• On June 30, 2025, 667, L.P. purchased 55,191 shares of common stock at $44.00 per share and 55,191 prefunded warrants at $43.9999 per share (with an exercise price of $0.0001).
• On the same date, Baker Brothers Life Sciences, L.P. purchased 600,309 shares of common stock at $44.00 per share and 600,309 prefunded warrants at $43.9999 per share (with an exercise price of $0.0001).
• The total acquisition amounts to 655,500 shares of common stock and 655,500 prefunded warrants, representing a combined investment of approximately $57.68 million.
• Following these transactions, 667, L.P. and related entities beneficially own 534,134 shares of common stock and 974,192 prefunded warrants indirectly.
• Baker Brothers Life Sciences, L.P. and related entities beneficially own 6,117,295 shares of common stock and 10,225,962 prefunded warrants indirectly.
• The prefunded warrants are exercisable at any time on a 1-for-1 basis into common stock, subject to a beneficial ownership limitation of 4.99% of outstanding shares, which can be increased to 19.99% with 61 days' notice to the Issuer.
• Felix J. Baker, a managing member of Baker Bros. Advisors (GP) LLC, is a director of Kymera Therapeutics, Inc., and other reporting persons are deemed directors by deputization.

Sentiment

Score: 9

Explanation: The significant investment by a major, well-regarded institutional insider like Baker Bros. Advisors, coupled with their existing board representation, signals strong confidence in the company's future and is a highly positive indicator for investors.

Positives

• Significant investment by a prominent biotech investor, Baker Bros. Advisors, signaling strong confidence in Kymera Therapeutics' future.
• The acquisition of both common stock and prefunded warrants demonstrates a long-term commitment and belief in the company's growth potential.
• The total investment of approximately $57.68 million is a substantial capital injection for Kymera Therapeutics.

Risks

• The exercise of prefunded warrants could lead to future dilution for existing shareholders, although the beneficial ownership limitation aims to manage this.
• The ability of the funds to increase their beneficial ownership limitation to 19.99% could concentrate ownership and influence.

Future Outlook

Baker Bros. affiliated funds have acquired prefunded warrants that are exercisable at any time, providing a future pathway to increase their common stock holdings. They also have the option to increase their beneficial ownership limitation from 4.99% to 19.99% with a 61-day notice, indicating potential for further increased stake in Kymera Therapeutics.

Industry Context

This transaction represents a significant insider investment by Baker Bros. Advisors, a highly respected and influential investment firm specializing in the life sciences sector. Their continued investment in Kymera Therapeutics suggests a positive long-term view of the company's prospects within the biotechnology industry, particularly given their existing board representation.

Corporate Governance

Related Party Transactions

• The acquisition of common stock and prefunded warrants by Baker Bros. affiliated funds, who have directors on Kymera Therapeutics' board, constitutes a related party transaction.

Stakeholder Impact

• Shareholders: Increased confidence due to significant insider investment, but potential for future dilution if warrants are exercised.
• Company: Strengthened capital base from the underwritten offering, and a strong vote of confidence from a key institutional investor.

Next Steps

• Potential future exercise of prefunded warrants by Baker Bros. affiliated funds.
• Possible increase in the beneficial ownership limitation by 667, L.P. and Baker Brothers Life Sciences, L.P. to 19.99% with proper notice.

Key Dates

Recommendation

Keywords

Kymera Therapeutics, KYMR, Baker Bros. Advisors, Insider Buying, SEC Form 4, Stock Purchase, Prefunded Warrants, Beneficial Ownership, Biotechnology, Investment, Underwritten Offering