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CytomX and Merck team up for cancer drug trial

Published 07/05/2024, 22:38
Updated 07/05/2024, 22:40
CTMX
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SOUTH SAN FRANCISCO – CytomX Therapeutics, Inc. (NASDAQ:CTMX) has announced a partnership with pharmaceutical giant Merck to conduct a Phase 1 clinical trial for a novel cancer treatment, CX-801. The trial, expected to commence in the first half of 2024, will assess CX-801 as a monotherapy and in combination with Merck's KEYTRUDA in patients with advanced metastatic solid tumors, including melanoma, renal cell carcinoma, and head and neck squamous cell carcinoma.

CX-801 is a conditionally activated interferon-alpha2b cytokine, part of a new class of biologics designed to target the tumor microenvironment while minimizing systemic toxicities that have limited the use of traditional interferon therapies. The collaboration aims to explore the potential of CX-801 to enhance the immune system's response to tumors and establish its role in combination regimens for cancer treatment.

Dr. Wayne Chu, CytomX's Chief Medical Officer, expressed optimism about the product's design principles, which are based on over a decade of innovation in masking potent biologic therapies. Sean McCarthy, CEO and Chairman of CytomX, also highlighted the compelling mechanistic combination of CX-801 with KEYTRUDA, which may significantly improve patient outcomes.

CytomX Therapeutics is a clinical-stage biopharmaceutical company focused on developing conditionally activated, masked biologics for cancer treatment. Its pipeline includes candidates across various treatment modalities, such as antibody-drug conjugates, T-cell engagers, and cytokines.

The company has established multiple strategic collaborations across the oncology sector, with partners including Amgen (NASDAQ:AMGN), Astellas, Bristol Myers (NYSE:BMY) Squibb, Regeneron (NASDAQ:REGN), and Moderna (NASDAQ:MRNA). However, the development of new drugs like CX-801 is subject to significant risks and uncertainties, as emphasized in the company's forward-looking statements.

InvestingPro Insights

In light of CytomX Therapeutics' recent announcement of its partnership with Merck and the upcoming clinical trial for CX-801, several metrics and tips from InvestingPro provide additional context for investors considering the company's prospects.

Firstly, CytomX Therapeutics holds a market capitalization of approximately $275.67 million, reflecting its standing in the biopharmaceutical industry and investor valuation of its potential. Despite an impressive revenue growth of 90.38% in the last twelve months as of Q4 2023, the company's P/E ratio stands at a negative -537.50, indicating that it is not currently generating profits relative to its share price.

Investors may also note that CytomX has experienced substantial price returns, with a 168.1% return over the last week and a 157.06% return over the last year, highlighting significant investor interest and stock performance in recent periods.

Two InvestingPro Tips that may be particularly relevant to interested parties are:

  • CytomX is quickly burning through its cash reserves, which could be a point of concern for long-term sustainability.
  • Analysts do not anticipate the company will be profitable this year, which aligns with the negative P/E ratio and may suggest caution for those looking for short-term profitability.

For readers seeking a deeper dive into CytomX Therapeutics' financials and performance metrics, InvestingPro offers additional insights and tips. Currently, there are 13 more InvestingPro Tips available for CTMX at https://www.investing.com/pro/CTMX. To access these valuable insights, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.

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

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