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SAN DIEGO – BioAtla, Inc. (NASDAQ:BCAB), a clinical-stage biotechnology company, has entered into a licensing agreement with Context Therapeutics Inc. (NASDAQ:CNTX), granting Context exclusive rights to develop and commercialize BA3362, a bispecific antibody for solid tumor treatment.
Under the agreement, BioAtla is set to receive up to $133.5 million, including $15.0 million in upfront and near-term milestone payments, with the potential for additional clinical, regulatory, and commercial milestones totaling $118.5 million, plus royalties on net sales. Context will be responsible for funding all development and commercialization activities.
BA3362, the focus of the deal, is a T cell engaging bispecific antibody targeting Nectin-4, a protein overexpressed in various cancers. This antibody is designed to be preferentially active within the tumor microenvironment, aiming to address resistance to existing Nectin-4 antibody-drug conjugates and potentially offering a better safety profile.
BioAtla's CEO, Jay M. Short, Ph.D., expressed that this partnership enables BioAtla to concentrate on its lead clinical programs while leveraging Context's expertise to advance BA3362. Context's CEO, Martin Lehr, highlighted the strategic fit of BA3362 within their T cell engaging bispecific antibodies pipeline, emphasizing the high prevalence of Nectin-4 in solid tumors and the need for novel treatment options.
The companies expect an Investigational New Drug (IND) filing for BA3362 in mid-2026, marking a significant milestone in the drug's development pathway.
BioAtla boasts a robust patent portfolio for its Conditionally Active Biologics (CAB) technology and has several CAB programs in Phase 2 clinical testing. Context, on the other hand, is building a portfolio of T cell engaging bispecific therapeutics for solid tumors, with BA3362 now among its key assets.
Financial advisory for the transaction was provided by Tungsten Advisors for BioAtla and Piper Sandler for Context, with Orrick, Herrington & Sutcliffe LLP and Goodwin Procter LLP serving as legal counsel, respectively.
This article is based on a press release statement from BioAtla, Inc. The information presented is factual, with no endorsement of the claims made by the companies involved.
In other recent news, Context Therapeutics has seen a series of significant developments. The pharmaceutical company's stockholders approved an amendment to double the number of authorized shares from 100 million to 200 million. This change provides Context Therapeutics with the flexibility for future corporate needs, such as fundraising activities and stock-based compensation.
Additionally, the company acquired a clinical-stage therapeutic agent, CT-95, from Link Immunotherapeutics. This move aligns with Context's strategy to expand its portfolio of T cell engager assets for tackling solid tumors. Context Therapeutics has also appointed Claudio Dansky Ullmann, M.D., as Chief Medical Officer and Karen Andreas, M.S., as Vice President of Clinical Operations, to advance its clinical-stage T cell engaging assets, CTIM-76 and CT-95, into Phase 1 clinical trials.
On the analyst front, Piper Sandler reaffirmed its Overweight rating on Context Therapeutics, citing promising results from CLDN6-targeting programs by competitors. Similarly, H.C. Wainwright has adjusted its outlook on shares of Context Therapeutics, increasing the price target to $6.00 from $5.00, while maintaining a Buy rating. The company has secured approximately $100 million in a private placement led by Nextech Invest Ltd. These are the recent developments at Context Therapeutics.
InvestingPro Insights
As Context Therapeutics Inc. (NASDAQ:CNTX) secures the exclusive rights to develop and commercialize BioAtla's BA3362, it's crucial for investors to understand the financial health and market performance of Context. According to InvestingPro, Context Therapeutics holds more cash than debt on its balance sheet, which may provide a level of financial stability as they fund the development and commercialization activities for BA3362.
InvestingPro data reveals a market capitalization of $169.5 million for Context, reflecting the company's current valuation in the market. Despite not being profitable over the last twelve months, Context has seen a significant return over the last year, with a 119.42% increase. This could indicate strong investor confidence or speculative interest in the company's future prospects. Additionally, the stock has experienced a large price uptick over the last six months, showing a 93.99% return in that period.
InvestingPro Tips also highlight that Context's stock price movements are quite volatile, which could be relevant for investors considering the timing of their investments in relation to the development milestones of BA3362. With a significant return over the last week, investors may be reacting to the news of the licensing agreement with BioAtla.
For those looking for more in-depth analysis, InvestingPro offers additional tips on Context Therapeutics. Currently, there are 9 more InvestingPro Tips available, which can be accessed through the InvestingPro platform for those seeking comprehensive investment insights.
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