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Investing.com - Barclays initiated coverage on CytomX Therapeutics (NASDAQ:CTMX) with an Overweight rating and a price target of $3.50 on Wednesday. The stock, which has surged over 200% in the past six months, currently trades at a P/E ratio of 3.92 with a market capitalization of $323 million.
The investment bank cited a positive risk-reward outlook for CytomX’s lead clinical program, CX-2051, an EpCAM probody drug conjugate with data expected in the first quarter of 2026. According to InvestingPro, the company maintains a "GREAT" financial health score, with 12 additional key insights available for subscribers.
Barclays noted that CytomX’s current cash position provides runway through the second quarter of 2027, sufficient to cover upcoming catalysts through 2026. InvestingPro data confirms the company’s strong liquidity position with a current ratio of 4.2, though it’s worth noting the company is quickly burning through its cash reserves.
The firm highlighted positive interim results from CX-2051’s dose escalation study in patients with advanced colorectal cancer, announced in May. The ongoing study has enrolled 73 colorectal cancer patients to date.
Barclays currently ascribes $1 per share value to the CX-2051 program and sees favorable risk-reward potential heading into the anticipated data update in early 2026.
In other recent news, CytomX Therapeutics reported its Q2 2025 earnings, showing a decrease in revenue and a significant miss on earnings per share forecasts. This financial update has raised concerns among investors. Additionally, CytomX disclosed a patient death in its Phase 1 study of CX-2051, an experimental cancer treatment. The fatality involved a Grade 5 treatment-related acute kidney injury in a patient with a complex medical history, including having a solitary kidney. The company reported that this incident was secondary to nausea, vomiting, and diarrhea. CytomX has notified the U.S. Food and Drug Administration about this event, adhering to regulatory requirements. Despite these challenges, CytomX continues to advance its dose expansion cohorts in the Phase 1 study of CX-2051, with approximately 20 patients enrolled in each planned cohort. These developments reflect the ongoing complexities and challenges faced by the company in its research and financial endeavors.
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