CytomX refocuses on key cancer drug, extends cash runway

SOUTH SAN FRANCISCO - CytomX Therapeutics, Inc. (NASDAQ:CTMX), a biopharmaceutical company specializing in the development of novel biologics with a market capitalization of $88.4 million, announced strategic updates to its clinical pipeline, emphasizing its lead program CX-2051, a PROBODY® antibody-drug conjugate (ADC) targeting advanced metastatic colorectal cancer (CRC). According to InvestingPro analysis, the company has demonstrated strong revenue growth of 33.7% over the last twelve months. The company expects to report initial Phase 1a clinical data for CX-2051 in the first half of this year, with a focus on patients who have exhausted other treatment options.

CytomX's CX-2051 is designed to target EpCAM, an antigen highly expressed in CRC but considered undruggable due to its presence on normal tissues. The ADC carries a topoisomerase-1 inhibitor payload, which shows promise for heavily pretreated CRC patients. The Phase 1 study, which began in April 2024, is currently in the sixth dose escalation cohort.

In addition to CX-2051, the company continues to progress its other clinical stage programs. CX-904, an EGFR-CD3 PROBODY T-cell engager (TCE), is advancing through Phase 1a, with the company and its partner Amgen (NASDAQ:AMGN) prioritizing dose escalation based on safety and anti-tumor activity. Meanwhile, CX-801, a PROBODY® Interferon-alpha 2b, is progressing in a Phase 1 study focused on metastatic melanoma, with initial data expected in the second half of 2025.

To concentrate resources on these clinical programs, CytomX is reducing its workforce by approximately 40 percent, primarily affecting early research and administrative functions. This restructuring is expected to be completed by the end of the first quarter of 2025 and aims to extend the company's cash runway into the second quarter of 2026. CytomX ended the third quarter of 2024 with $117.6 million in cash, cash equivalents, and investments. InvestingPro data reveals the company holds more cash than debt on its balance sheet, though it's currently burning through cash rapidly. The company maintains a healthy current ratio of 1.04, suggesting adequate liquidity to meet near-term obligations.

CytomX's collaborations with industry leaders such as Amgen, Astellas, Bristol Myers (NYSE:BMY) Squibb, Moderna (NASDAQ:MRNA), and Regeneron (NASDAQ:REGN) remain a strategic priority, focusing on the long-term potential of masked, conditionally active therapeutics in oncology.

The company is set to present at the 43rd Annual JP Morgan Healthcare Conference on January 15th, where further details on its pipeline and strategy may be shared. With the stock showing a significant 10.2% return over the last week and analysts predicting profitability this year, investors seeking deeper insights can access comprehensive analysis through InvestingPro, which offers exclusive financial health scores and additional ProTips for informed decision-making. This press release statement serves as the basis for the information provided in this article.

In other recent news, CytomX Therapeutics, a notable player in the biotechnology space, has been in the spotlight due to recent developments. The company recently disclosed its third-quarter collaboration revenue, which amounted to $33.4 million. CytomX Therapeutics also provided updates on its robust product pipeline, including CX-2051 and CX-904, both of which are progressing with expected initial data in 2025.

BMO Capital Markets has adjusted its price target on CytomX Therapeutics to $3.68, maintaining a Market Perform rating. Concurrently, Piper Sandler revised its price target to $3.25 from $3.50, while keeping an Overweight rating on the stock. These changes reflect the company's recent earnings report and updates on its product pipeline.

Furthermore, CytomX Therapeutics has reported a strong financial position with cash reserves of $137 million. The company's ongoing clinical developments and financial health have been cited as key factors influencing these ratings. As these are recent developments, investors may find them relevant in their decision-making process.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.