Core Viewpoint - Compars Therapeutics, Inc. (CMPX) has experienced a significant decline of 23.5% in its stock price over the past four weeks, but it is now in oversold territory, suggesting a potential for a turnaround as analysts expect better earnings than previously predicted [1]. Group 1: Stock Performance and Technical Indicators - CMPX's stock is currently showing signs of being oversold, with a Relative Strength Index (RSI) reading of 28.08, indicating that the heavy selling pressure may be exhausting itself [5]. - The RSI is a momentum oscillator that helps identify whether a stock is oversold, typically when the reading falls below 30 [2]. - The stock's price movements suggest it could soon revert to its previous equilibrium of supply and demand [5]. Group 2: Earnings Estimates and Analyst Sentiment - There has been a strong consensus among sell-side analysts to raise earnings estimates for CMPX, resulting in a 15.4% increase in the consensus EPS estimate over the last 30 days [7]. - An upward trend in earnings estimate revisions is generally associated with price appreciation in the near term [7]. - CMPX holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate trends and EPS surprises, indicating a strong potential for a turnaround [8].

Core Viewpoint - Compass Therapeutics, Inc. (CMPX) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive trend in earnings estimates which is a significant factor influencing stock prices [1][4]. Earnings Estimates and Revisions - The Zacks rating system is based on the Zacks Consensus Estimate, which reflects EPS estimates from sell-side analysts for the current and following years [2]. - The recent upgrade for Compass Therapeutics reflects an improvement in the company's earnings outlook, potentially leading to increased buying pressure and stock price appreciation [4][6]. - For the fiscal year ending December 2024, Compass Therapeutics is expected to earn -$0.38 per share, representing a -15.2% change from the previous year [9]. Impact of Institutional Investors - Changes in a company's future earnings potential, as indicated by earnings estimate revisions, are strongly correlated with near-term stock price movements, largely due to institutional investors adjusting their valuations based on these estimates [5]. - Institutional investors' actions, driven by earnings estimates, can lead to significant price movements in stocks [5]. Zacks Rank System - The Zacks Rank system categorizes stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [8]. - The upgrade of Compass Therapeutics to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [11].

Financial Performance - As of September 30, 2024, Compass Therapeutics reported net losses of $10.5 million for Q3 2024, compared to $10.0 million for Q3 2023, and $34.3 million for the nine months ended September 30, 2024, compared to $29.1 million for the same period in 2023[73]. - The company has an accumulated deficit of $350 million as of September 30, 2024, and expects to continue incurring significant expenses for clinical development over the next few years[73]. - For the three months ended September 30, 2024, total operating expenses increased by $0.3 million, or 2.6%, to $12.239 million compared to $11.926 million for the same period in 2023[85]. - Research and development expenses decreased by $0.2 million, or 2%, to $8.612 million for the three months ended September 30, 2024, compared to $8.831 million for the same period in 2023[86]. - General and administrative expenses increased by $0.5 million, or 17%, to $3.627 million for the three months ended September 30, 2024, primarily due to increased stock compensation costs[87]. - Licensing revenue for the nine months ended September 30, 2024, was $850 thousand, a significant increase from $0 for the same period in 2023, driven by a $1 million milestone payment from Elpiscience[89]. - Research and development expenses increased by $3.6 million, or 14%, to $29.304 million for the nine months ended September 30, 2024, compared to $25.694 million for the same period in 2023[90]. - General and administrative expenses increased by $2.3 million, or 25%, to $11.597 million for the nine months ended September 30, 2024, compared to $9.276 million for the same period in 2023[92]. - Cash used in operating activities for the nine months ended September 30, 2024, was $35.693 million, compared to $28.264 million for the same period in 2023[98]. - Cash provided by financing activities for the nine months ended September 30, 2024, was $17.432 million, significantly higher than $3.093 million for the same period in 2023[102]. - As of September 30, 2024, the company had cash and marketable securities of $135 million, which is expected to fund operations into the first quarter of 2027[94][105]. Clinical Trials and Product Development - CTX-009 is currently in a Phase 2/3 trial in combination with paclitaxel for biliary tract cancer, with 150 patients enrolled and top-line data expected by the end of Q1 2025[62]. - The Phase 2 monotherapy trial of CTX-009 in metastatic colorectal cancer was discontinued after failing to meet response criteria, with an overall response rate of 5% and a disease control rate of 71%[60][61]. - CTX-471, a monoclonal antibody, showed an overall response rate of 27% in advanced melanoma patients during its Phase 1b trial, with five clinical responses reported[67]. - CTX-8371, a bispecific antibody targeting PD-1 and PD-L1, has completed its second cohort in clinical trials with no dose-limiting toxicities observed, and the third cohort is planned for late 2024[71]. - The company plans to initiate a new second-line trial for CTX-009 in metastatic colorectal cancer combined with chemotherapy in mid-2025[61]. - The FDA granted Fast Track Designation to CTX-009 in combination with paclitaxel for the treatment of previously treated metastatic or locally advanced biliary tract cancer[62]. - Compass Therapeutics intends to explore additional indications for CTX-009 based on preclinical models and clinical data, including ovarian, liver, gastric, pancreatic, and renal cell cancers[64]. Funding and Financial Strategy - The company anticipates increased expenses related to ongoing clinical trials and commercialization efforts for its product candidates, necessitating additional funding[96][105]. - The company expects to finance cash needs through equity and debt financings, collaborations, and licensing arrangements[106]. - If additional capital is raised through equity or convertible debt, ownership interest may be materially diluted[106]. - Debt financing may involve restrictive covenants limiting actions such as incurring additional debt or declaring dividends[106]. Internal Controls and Legal Proceedings - The company has evaluated its disclosure controls and procedures as effective as of September 30, 2024[108]. - There were no changes in internal control over financial reporting that materially affected the company during the quarter ended September 30, 2024[109]. - The company is not currently involved in any material legal proceedings, but may face various claims in the ordinary course of business[111].

Financial Performance - The net loss for the quarter ended September 30, 2024, was $10.5 million, or $0.08 per share, compared to a net loss of $10.0 million, or $0.08 per share, for the same period in 2023[8] - The net loss for the nine months ended September 30, 2024, was $34.3 million, or $0.25 per share, compared to a net loss of $29.1 million, or $0.23 per share, for the same period in 2023[8] Research and Development - Research and Development (R&D) expenses for the quarter were $8.6 million, a slight decrease from $8.8 million in the same period in 2023[9] - Clinical costs related to the COMPANION-002 trial increased by $5.2 million, contributing to the overall rise in R&D expenses for the nine months ended September 30, 2024[9] - The Phase 2/3 trial of CTX-009 in patients with biliary tract cancers is fully enrolled, with top-line data readout expected by the end of Q1 2025[1] - A Phase 2 trial of CTX-009 in combination with chemotherapy for DLL4-positive colorectal cancer is being designed, with initiation expected in mid-2025[1] - CTX-471 has shown a correlation between NCAM (CD56) expression and disease control, leading to plans for a Phase 2 trial in mid-2025[1] - The second dosing cohort of the Phase 1 study of CTX-8371 is fully enrolled, with enrollment into the third cohort expected to begin soon[6] Expenses - General and Administrative (G&A) expenses increased to $3.6 million for the quarter, up from $3.1 million in the same period in 2023, primarily due to higher stock compensation expenses[10] Cash and Securities - Cash and marketable securities as of September 30, 2024, totaled $135 million, down from $152 million as of December 31, 2023, providing a cash runway into the first quarter of 2027[11] Liabilities and Equity - Total liabilities increased to $10,753 million from $8,337 million, reflecting a growth of approximately 29.3% year-over-year[21] - Total stockholders' equity decreased to $138,398 million from $148,538 million, indicating a decline of about 6.8%[21] - Total liabilities and stockholders' equity amounted to $149,151 million, down from $156,875 million, representing a decrease of approximately 4.9%[21] - Long-term operating lease obligations are reported at $6,320 million[21]

Financial Performance - As of June 30, 2024, the company reported net losses of $13.1 million for the three months ended June 30, 2024, compared to $11.3 million for the same period in 2023, and $23.9 million for the six months ended June 30, 2024, compared to $19.1 million in 2023[58]. - The net loss for the three months ended June 30, 2024, was $13.1 million, compared to a net loss of $11.3 million for the same period in 2023, reflecting an increase of $1.8 million[69]. - Cash used in operating activities for the six months ended June 30, 2024, was $24.6 million, compared to $22.3 million for the same period in 2023[84]. Revenue and Expenses - Licensing revenue for the three months ended June 30, 2024, was $850 thousand, a significant increase from $0 for the same period in 2023, primarily due to a $1 million milestone payment from Elpiscience[70]. - For the six months ended June 30, 2024, licensing revenue was $850 thousand, with no licensing revenue reported for the same period in 2023[76]. - Research and development expenses increased by $1.0 million, or 9%, for the three months ended June 30, 2024, totaling $11.2 million compared to $10.2 million in the same period in 2023[71]. - Research and development expenses for the six months ended June 30, 2024, increased by $3.8 million, or 23%, totaling $20.7 million compared to $16.9 million in the same period in 2023[77]. - General and administrative expenses rose by $1.6 million, or 52%, for the three months ended June 30, 2024, reaching $4.7 million compared to $3.1 million in the same period in 2023[72]. - General and administrative expenses for the six months ended June 30, 2024, increased by $1.8 million, or 29%, totaling $8.0 million compared to $6.2 million in the same period in 2023[77]. Cash Position and Funding - As of June 30, 2024, the company had $146 million in cash, cash equivalents, and marketable securities, expected to fund operations into Q1 2027[59]. - The company has sufficient cash, cash equivalents, and marketable securities to fund operations and capital expenditures into Q1 2027, based on current plans[89]. - The company expects future funding requirements to increase substantially due to ongoing activities, including clinical trials and regulatory approvals[88]. - The company expects to require additional funding for the clinical development of three programs: CTX-009, CTX-471, and CTX-8371[89]. - The company plans to finance cash needs through equity and debt financings, collaborations, and licensing arrangements, which may dilute ownership interest[90]. Clinical Trials and Development - CTX-009 is currently in two ongoing U.S. clinical trials, with a Phase 2 trial for metastatic colorectal cancer showing a disease control rate of 71% and an overall response rate of 5%[48][49]. - A randomized Phase 2/3 trial for CTX-009 in combination with paclitaxel for biliary tract cancer has fully enrolled 150 patients, with top-line data expected in Q1 2025[49]. - The FDA granted Fast Track Designation to CTX-009 in combination with paclitaxel for the treatment of metastatic or locally advanced biliary tract cancer in April 2024[50]. - CTX-471, a monoclonal antibody, is currently in a Phase 1b clinical trial, with plans for a Phase 2 monotherapy study based on a newly identified biomarker[55][52]. - CTX-8371, a bispecific antibody targeting PD-1 and PD-L1, has completed its first cohort in a clinical trial with no dose-limiting toxicities observed[56]. - The company expects to continue incurring significant expenses for clinical development and regulatory approval for the next several years[58]. - If regulatory approval is received for CTX-009, CTX-471, or CTX-8371, significant commercialization expenses will be incurred related to manufacturing, sales, marketing, and distribution[89]. Legal and Compliance - There were no changes in internal control over financial reporting during the quarter ended June 30, 2024, that materially affected internal controls[93]. - As of the date of the report, the company is not involved in any material legal proceedings, although it may face various claims in the ordinary course of business[95].

EXHIBIT 99.1 Compass Therapeutics Reports 2024 Second Quarter Financial Results and Provides Corporate Update Completed enrollment of the 150 patients in the COMPANION-002 Study, a Phase 2/3 trial of CTX-009 (DLL4 and VEGF-A bispecific antibody) plus paclitaxel versus paclitaxel monotherapy in patients with previously treated, unresectable advanced metastatic or recurrent biliary tract cancers (BTC); top-line data expected in the first quarter of 2025. Approved an Investigator Sponsored Trial (IST) of CTX-0 ...

Company Overview - Compass Therapeutics, Inc. is a clinical-stage biopharmaceutical company focused on oncology, developing proprietary antibody-based therapeutics for multiple human diseases [2] - The company was founded in 2014 and is headquartered in Boston, Massachusetts [2] Scientific Focus - The scientific focus of Compass Therapeutics is on the relationship between angiogenesis, the immune system, and tumor growth [2] - The pipeline includes novel product candidates targeting critical biological pathways for effective antitumor responses, such as modulation of microvasculature and induction of immune responses [2] Product Development Strategy - Compass plans to advance its product candidates through clinical development as standalone therapies and in combination with proprietary pipeline antibodies [2] - The development is based on supportive clinical and nonclinical data [2] Upcoming Events - Compass Therapeutics will present at the Wedbush PacGrow Healthcare Conference in New York City on August 13, 2024, at 11 AM ET [1]

Core Insights - Compass Therapeutics has completed enrollment of 150 patients in the COMPANION-002 trial, a Phase 2/3 study evaluating CTX-009 in patients with unresectable advanced metastatic or recurrent biliary tract cancers [1][4] - The company has received approval for an Investigator Sponsored Trial (IST) to study CTX-009 in the first-line setting for biliary tract cancer, which will be conducted at The University of Texas MD Anderson Cancer Center [3] Group 1: COMPANION-002 Trial - The COMPANION-002 study is a multi-center, open-label, randomized trial comparing CTX-009 plus paclitaxel to paclitaxel alone in patients who have received one prior systemic chemotherapy regimen [4] - The primary endpoint of the trial is the overall response rate (ORR), with secondary endpoints including progression-free survival (PFS), overall survival (OS), clinical benefit rate (CBR), and duration of response (DOR) [4] - The trial is being conducted at 33 clinical sites across the United States [4] Group 2: CTX-009 Overview - CTX-009 is a bispecific antibody that blocks Delta-like ligand 4 (DLL4) and vascular endothelial growth factor A (VEGF-A) signaling pathways, which are essential for angiogenesis and tumor vascularization [5] - Preclinical and early clinical data suggest that CTX-009 provides robust anti-tumor activity across various solid tumors, including colorectal, gastric, cholangiocarcinoma, pancreatic, and non-small cell lung cancer [5] - Partial responses to CTX-009 as a monotherapy have been observed in heavily pre-treated cancer patients resistant to approved anti-VEGF therapies [5] Group 3: Company Background - Compass Therapeutics is a clinical-stage biopharmaceutical company focused on developing antibody-based therapeutics for multiple diseases, particularly in oncology [6] - The company's scientific focus includes the relationship between angiogenesis, the immune system, and tumor growth, with a pipeline targeting critical biological pathways for effective anti-tumor responses [6] - Founded in 2014 and headquartered in Boston, Massachusetts, Compass aims to advance its product candidates through clinical development as standalone therapies and in combination with other proprietary antibodies [6]

Compass Therapeutics, Inc. (CMPX) could be a solid choice for investors given its recent upgrade to a Zacks Rank #2 (Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change. Individual investors often find it hard to make decisions based on rating upgrades by Wall Street analysts, since these are mostly driven by subjective factors that are hard to see and measure in real time. In these situations, the Zacks rating system come ...

alengo/E+ via Getty Images Topline Summary Compass Therapeutics (NASDAQ:CMPX) is an oncology-focused developmental biotech working on novel immunotherapies to treat different forms of solid tumor, with the most notable shots on goal being in the gastrointestinal cancers space. They have experienced significant declines in valuation through 2023 and 2024, despite being deep in late-stage clinical study. So today I want to take a look at their projects, what they've shared to date, and the outlook for potenti ...