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On Monday, Piper Sandler initiated coverage on CytomX Therapeutics (NASDAQ:CTMX) with an Overweight rating and a price target of $2.50. The firm’s analysis highlights CytomX’s progress in its clinical trials and its collaboration with other pharmaceutical companies. According to InvestingPro data, the company maintains a "GOOD" overall financial health score, with more cash than debt on its balance sheet, and two analysts have recently revised their earnings estimates upward for the upcoming period.
CytomX is actively enrolling participants for the seventh cohort in the Phase I dose-escalation study of its drug candidate CX-2051, aimed at treating metastatic colorectal cancer. Initial results from this study are expected in the second quarter of 2025. Piper Sandler notes that clean safety data from the trial could affirm the potential of CX-2051, which is a masked EpCAM antibody-drug conjugate (ADC). Any indication of efficacy, such as stable disease, would be considered a positive outcome for patients with late-stage colorectal cancer. The company has demonstrated strong revenue growth with a 36.45% increase in the last twelve months, though InvestingPro analysis indicates analysts anticipate a sales decline in the current year.
In addition to CX-2051, CytomX is conducting a Phase I dose-escalation study of CX-801, a Probody masked interferon-alpha2b, for metastatic melanoma. Preliminary pharmacodynamic data for CX-801 is anticipated in the second half of 2025, with efficacy data expected to follow in 2026.
The company’s strategic partnerships with industry leaders such as Astellas, Regeneron (NASDAQ:REGN), and Moderna (NASDAQ:MRNA) are also emphasized by Piper Sandler as a key aspect of CytomX’s business model. These alliances, along with the potential for future deals, contribute to the firm’s positive outlook on the stock.
Financially, CytomX concluded the year 2024 with $101 million in cash reserves, which is projected to sustain the company’s operations into the second quarter of 2026. This funding timeline covers the anticipated initial Phase I data releases for both CX-2051 and CX-801.
The current market capitalization of CytomX stands at $46 million, which Piper Sandler points out implies a negative $55 million enterprise value, suggesting a disparity between the company’s market value and its underlying financials. InvestingPro analysis suggests the stock is currently undervalued, with additional metrics and insights available in the comprehensive Pro Research Report, which provides detailed analysis of over 1,400 US stocks, including CytomX Therapeutics.
In other recent news, CytomX Therapeutics Inc . reported its fourth-quarter 2024 financial results, showcasing a remarkable revenue achievement. The company reported total revenue of $138.1 million, significantly surpassing the forecasted $12.24 million. Despite a decrease in cash balance from $174.5 million in 2023 to $100.6 million, the company extended its cash runway to the second quarter of 2026. Notably, CytomX’s collaborations with major partners like Bristol Myers (NYSE:BMY) Squibb, Moderna, Astellas, and Regeneron contributed to this revenue growth. However, the CX-9004 program with Amgen (NASDAQ:AMGN) has been discontinued, which may impact future revenue streams.
In terms of operational expenses, CytomX reported a total of $113.1 million for the year, slightly up from $107.7 million in 2023, with a notable $5 million milestone payment to AbbVie (NYSE:ABBV) for the initiation of Phase I for CX-2051. Analysts from Jefferies and Piper Sandler engaged with the company during the earnings call, inquiring about the progress and expectations for the CX-2051 and CX-8001 programs. The company remains optimistic about its clinical programs, with plans to present initial Phase 1a data for CX-2051 in the first half of 2025. Additionally, CytomX aims to initiate a combination study of CX-8001 with KEYTRUDA in collaboration with Merck (NSE:PROR).
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