On Tuesday, H.C. Wainwright analysts maintained a Neutral rating on CytomX Therapeutics (NASDAQ:CTMX) following the company's announcement of a corporate restructuring and the prioritization of its pipeline.
CytomX disclosed that its lead program would now be CX-2051, an antibody-drug conjugate targeting metastatic colorectal cancer, with Phase 1 data expected in the first half of 2025. The development pipeline also includes CX-904 and CX-801, both in Phase 1 studies.
The restructuring includes a significant reduction of CytomX's workforce by approximately 40%, aimed at preserving capital and extending the company's cash runway into the second quarter of 2026. This move primarily affects early research and general and administrative functions, with the process expected to be complete in the first quarter of 2025.
CytomX also continues its discovery-stage research collaborations with several major pharmaceutical companies, including Amgen (NASDAQ:AMGN), Astellas, Bristol-Myers Squibb (NYSE:BMY), Moderna (NASDAQ:MRNA), and Regeneron (NASDAQ:REGN). These partnerships are ongoing, though none of the companies have been rated by the analyst.
As part of the restructuring efforts, CytomX aims to create a more flexible cost structure. This strategic move is anticipated to provide the company with a more solid financial footing, as evidenced by the extension of its cash runway. At the end of the third quarter of 2024, CytomX reported having $117.6 million in cash and cash equivalents.
The analyst concluded by expressing a cautious stance, indicating that they are waiting for meaningful clinical data from these programs before adopting a more positive view of CytomX's prospects. No price target was provided for CytomX shares.
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