H.C. Wainwright raises CytomX stock to buy, target to $5.00

Published 15/05/2025, 12:30
H.C. Wainwright raises CytomX stock to buy, target to $5.00

On Thursday, H.C. Wainwright analyst Robert Burns upgraded CytomX Therapeutics (NASDAQ:CTMX) stock from Neutral to Buy and set a new price target of $5.00. The upgrade was prompted by what the analyst described as "Impressive EpCAM ADC data," which restored a favorable outlook on the company. The stock has shown remarkable momentum, delivering a 118% return in the past week alone. According to InvestingPro data, analyst targets now range from $3.50 to $8.00, suggesting significant potential upside.

CytomX recently reported promising clinical data for its EpCAM ProBody Topo-1 ADC, CX-2051, in a study involving 25 patients with late-line colorectal cancer (CRC). These patients had undergone extensive previous treatment, with a median of four prior therapy lines, and all were microsatellite-stable (MSS). The data, as of April 7, 2025, showed a confirmed response rate of 28% in unselected patients across multiple doses. The company’s strong financial position, with more cash than debt on its balance sheet, provides runway for continued clinical development. For deeper insights into CytomX’s financial health and growth prospects, investors can access the comprehensive Pro Research Report available on InvestingPro.

The highest dose of 10 mg/kg led to 43% of patients achieving confirmed responses. The preliminary median progression-free survival (mPFS) was reported at 5.8 months, which analysts believe indicates a clinically meaningful benefit, especially considering the potential for improved durability metrics with further follow-up and dose expansion. This clinical progress comes as the company maintains a healthy gross profit margin of 100% and has achieved profitability over the last twelve months.

The company plans to expand enrollment at each of the three dose levels with an additional 20 patients per cohort. This will provide a more substantial dataset to evaluate the potential of the high dose at the next readout. According to Burns, the safety profile of CX-2051 appeared clean with manageable and reversible adverse events (AEs), and no Grade 4 or 5 treatment-related adverse events (TRAEs) were reported. The most common Grade 3 AEs were diarrhea, occurring in 22% of patients, and anemia, in 13%.

The analyst highlighted the waterfall and spider plots from the study data, noting dose-dependent responses and the potential for efficacy metrics to improve as the dataset matures. CytomX’s next steps include using the dose expansion data to select the Phase 2 dose, which analysts view as a critical stage in the development of CX-2051.

In other recent news, CytomX Therapeutics Inc . reported outstanding financial results for the first quarter of 2025, significantly exceeding both earnings and revenue projections. The company achieved an earnings per share (EPS) of $0.27, surpassing the anticipated $0.06, and reported revenue of $50.92 million, well above the expected $29.7 million. These results reflect the company’s strong financial performance and strategic focus on its oncology pipeline. CytomX has also secured $100 million in financing to support ongoing projects, particularly the development of CX-2051 for colorectal cancer. The company has announced positive interim Phase I data for CX-2051, indicating robust anticancer activity in metastatic colorectal cancer. Additionally, CytomX plans to prioritize the late-line development of CX-2051, with a Phase II study expected to commence in the first half of 2026. These developments have been well-received by investors, highlighting the company’s innovative approach in oncology.

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