CytomX Therapeutics Conference Call Summary Company Overview - **Company**: CytomX Therapeutics (NasdaqGS:CTMX) - **Focus**: Therapeutic antibody company specializing in oncology - **Technology**: ProBody Therapeutic Platform, a masking strategy to enhance therapeutic windows for various antibody modalities in oncology, including antibody-drug conjugates (ADCs), T-cell engagers, and cytokines [3][4][7] Key Developments in 2025 - **Clinical Programs**: - **CX-2051**: A masked antibody-drug conjugate targeting EpCAM, with promising phase one data presented in May 2025, showing a confirmed overall response rate of 28% in late-stage colorectal cancer (CRC) patients [10][11] - **Interferon Alpha**: A second clinical program with recent data presented at CITSI [4] - **Market Conditions**: Improvement in capital markets has positively impacted the company [5] Clinical Data Highlights - **CX-2051 Phase One Study**: - **Patient Population**: Late-stage CRC patients (median of four prior therapies) [24] - **Efficacy**: - Overall response rate of 28% across three dose levels (7.2, 8.6, and 10 mg/kg) [10] - Progression-free survival (PFS) of 5.8 months, compared to 3-3.5 months for current standard of care [29] - Disease control rate of 94% [11] - **Safety Profile**: Well tolerated with low rates of hematologic toxicity; however, 21% grade three diarrhea reported [33] Technology Differentiation - **Masking Technology**: The ProBody Therapeutic approach allows for selective binding to tumor tissues while minimizing binding to normal tissues, enhancing the therapeutic window [7][10] - **Target Selection**: EpCAM is highly expressed in CRC, making it a viable target for systemic therapy [9][25] - **Payload Mechanism**: The use of a topoisomerase I inhibitor (CAMP59) linked to the antibody is crucial for efficacy in CRC [9][16] Future Expectations - **Enrollment Expansion**: Increased patient enrollment from 70 to approximately 100 patients to confirm efficacy and safety profiles, with data disclosure expected in Q1 2026 [20][22] - **Regulatory Path**: Aiming for a registrational study in 2026 based on robust phase one data [42] Financial Position - **Cash Reserves**: Approximately $150 million, funding operations into Q2 2027 [44] - **Partnerships**: Ongoing collaborations with Regeneron and Astellas, with active business development efforts [44] Conclusion CytomX Therapeutics is positioned for significant advancements in the oncology space with its innovative masking technology and promising clinical data for CX-2051. The company is well-funded and actively pursuing regulatory pathways to bring its therapies to market, particularly in the challenging area of late-stage colorectal cancer treatment.

Core Viewpoint - CytomX Therapeutics (CTMX) shows potential due to its masked antibody program, leading to a "Buy" sentiment from analysts [1] Group 1: Company Overview - The company is focused on developing innovative therapies, particularly in the field of masked antibodies, which could provide significant therapeutic advantages [1] Group 2: Analyst Insights - The analyst expresses optimism based on the promise of CytomX's technology and emphasizes the importance of understanding the science behind biotech investments [1]

Group 1 - CytomX Therapeutics, Inc. will participate in the Jefferies Global Healthcare Conference in London on November 20, 2025, at 9:00 a.m. GMT [1] - A live webcast of the presentation will be available on CytomX's website, and management will hold one-on-one meetings with registered investors [2] Group 2 - CytomX is a clinical-stage biopharmaceutical company focused on developing conditionally activated, masked biologics for cancer treatment [3] - The company’s PROBODY therapeutic platform aims to create safer and more effective therapies localized to the tumor microenvironment [3] - Current clinical-stage pipeline includes CX-2051, a masked ADC targeting EpCAM, and CX-801, a masked interferon alpha-2b PROBODY cytokine [3] - CytomX has established collaborations with major oncology leaders such as Amgen, Astellas, and Bristol Myers Squibb [3]

Group 1 - Antibody-drug conjugates (ADCs) are specialized antibodies designed to target specific proteins while delivering active agents, primarily utilized in cancer therapy [1] - ADCs enhance the precision of cancer treatment by targeting proteins expressed by cancer cells, allowing for the delivery of potent therapeutic agents directly to the tumor [1] Group 2 - ELAM1 provides financial professionals and investors with the necessary scientific and clinical expertise to navigate the healthcare sector, focusing on uncovering hidden value and assessing risks [1]

Core Insights - CytomX Therapeutics reported a quarterly loss of $0.09 per share, missing the Zacks Consensus Estimate of a loss of $0.04, and compared to earnings of $0.07 per share a year ago, representing an earnings surprise of -125.00% [1] - The company posted revenues of $5.96 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 53.43%, and down from $33.43 million year-over-year [2] - The stock has increased approximately 308.7% since the beginning of the year, significantly outperforming the S&P 500's gain of 15.6% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is -$0.04 on revenues of $13.22 million, and for the current fiscal year, it is $0.05 on revenues of $95.6 million [7] - The estimate revisions trend for CytomX Therapeutics was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Medical - Biomedical and Genetics industry, to which CytomX Therapeutics belongs, is currently in the top 41% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Data and Key Metrics Changes - As of September 30, 2025, the company reported cash, cash equivalents, and investments of $143.6 million, down from $158.1 million at the end of Q2 2025, indicating a decrease in liquidity [19] - Total revenue for Q3 2025 was $6 million, a significant decline from $33.4 million in Q3 2024, primarily due to the completion of performance obligations in the Bristol Myers Squibb collaboration [19] - Operating expenses decreased to $21.7 million in Q3 2025 from $29.3 million in Q3 2024, with R&D expenses at $15.3 million, down by $6.1 million year-over-year [20] Business Line Data and Key Metrics Changes - The company is advancing its lead drug candidate, CX-2051, which targets colorectal cancer, with promising interim Phase I data showing robust clinical activity and a preliminary median progression-free survival of 5.8 months [9][10] - CX-2051 is currently in the expansion phase of its Phase I study, with total enrollment expected to reach about 100 patients by Q1 2026 [11] - CX-801, another program in development for advanced melanoma, has shown promising initial biomarker data, indicating robust interferon signaling within the tumor microenvironment [16] Market Data and Key Metrics Changes - Colorectal cancer (CRC) represents a significant unmet need, with over 1.9 million new cases annually worldwide, projected to exceed 3 million by 2040 [5] - The company aims to position CX-2051 as a potential new standard of care in CRC, a market with substantial opportunities given the limitations of current treatments [6] Company Strategy and Development Direction - The company is focused on building an integrated commercial-stage organization around its innovative drug candidates, particularly CX-2051 and CX-801, while exploring additional indications for CX-2051 [12][22] - The strategy includes initiating a Phase IB study with the anti-VEGF antibody bevacizumab in Q1 2026, aiming to broaden the application of CX-2051 in earlier lines of CRC therapy [11][31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the potential of CX-2051 to outperform current standards of care in late-line CRC treatment, with an integrated confirmed response rate of 28% observed in early data [25] - The company remains optimistic about the differentiation of its drug candidates and their potential to address significant unmet medical needs in oncology [28][42] Other Important Information - The company completed a $100 million financing earlier in the year, positioning it to advance CX-2051 towards later-phase development [18] - Management highlighted the importance of ongoing discussions with the FDA regarding regulatory strategy and potential registrational paths for CX-2051 [41] Q&A Session Summary Question: Expectations for CX-2051 readout and ORR - Management indicated an integrated confirmed response rate of 28% and expressed optimism about the potential for improvement as data matures [25][26] Question: Enrollment feedback and trial partner insights - Management attributed increased enrollment to high interest from investigators and patients, with ongoing focus on managing adverse events like diarrhea [27] Question: Strategy for combination approach with bevacizumab - The initial strategy involves exploring multiple doses of CX-2051 in combination with bevacizumab, aiming to broaden the drug's application in earlier lines of therapy [30][31] Question: Regulatory strategy and interactions with the FDA - Management anticipates discussions with the FDA regarding registrational plans in 2026, with ongoing evaluation of data to inform strategy [41] Question: Potential for CX-2051 in other tumor types - Management expressed enthusiasm for exploring additional indications for CX-2051, including gastric, endometrial, and pancreatic cancers, while balancing development plans in CRC [37]

Financial Performance - Total revenue for Q3 2025 was $6.0 million, a decrease of 82% compared to $33.4 million in Q3 2024[9] - CytomX reported a net loss of $14.2 million for Q3 2025, compared to a net income of $5.7 million in Q3 2024[17] Operating Expenses - Total operating expenses in Q3 2025 were $21.7 million, down from $29.3 million in Q3 2024, representing a decrease of 26%[9] - Research and development expenses for Q3 2025 were $15.3 million, a decrease of 28% compared to $21.4 million in Q3 2024[10] - General and administrative expenses were $6.4 million in Q3 2025, down 19% from $7.9 million in Q3 2024[11] Cash and Investments - Cash, cash equivalents, and investments totaled $143.6 million as of September 30, 2025, down from $158.1 million as of June 30, 2025[8] - Cash and cash equivalents were $34,185 million, down from $38,052 million, a decline of 4.8%[19] - Short-term investments surged to $109,441 million, up from $62,571 million, reflecting an increase of 74.7%[19] Assets and Liabilities - Total assets increased to $158,254 million as of September 30, 2025, up from $120,533 million on December 31, 2024, representing a growth of 31.3%[19] - Total current assets rose to $149,217 million, compared to $107,305 million at the end of 2024, marking an increase of 39.1%[19] - Total liabilities decreased significantly to $50,865 million from $120,989 million, a reduction of 57.9%[19] - Stockholders' equity improved to $107,389 million, compared to a deficit of $456 million at the end of 2024, indicating a turnaround in equity position[19] - Accounts receivable decreased to $1,629 million from $3,103 million, a decline of 47.5%[19] - Deferred revenue, current portion, dropped to $22,379 million from $67,201 million, a decrease of 66.7%[19] - Operating lease right-of-use asset decreased to $4,814 million from $8,136 million, a decline of 40.5%[19] - Accumulated deficit improved to $(682,437) million from $(691,579) million, showing a reduction in losses[19] Clinical Developments - CX-2051 Phase 1 study enrollment is projected to reach approximately 100 patients by the planned data update in Q1 2026[4] - A Phase 1b CX-2051 combination study with bevacizumab in CRC is expected to start in Q1 2026[4] - Initial clinical data for CX-801 in combination with KEYTRUDA® is anticipated in 2026[6] - The company has research collaborations with major firms including Bristol Myers Squibb and Moderna, focusing on bispecific immunotherapies[10]

Core Insights - CytomX Therapeutics is advancing its pipeline with a focus on CX-2051 and CX-801, with key updates expected in 2026 [1][2][3] Pipeline Developments - CX-2051 Phase 1 data update is scheduled for Q1 2026, with ongoing dose expansions in advanced colorectal cancer (CRC) [1][5] - A Phase 1b study combining CX-2051 with bevacizumab is set to begin in Q1 2026, aimed at informing late-phase development [5] - CX-801 has shown positive initial biomarker data in advanced melanoma, supporting its combination study with KEYTRUDA® [3][5] Financial Performance - As of September 30, 2025, the company reported cash, cash equivalents, and investments totaling $143.6 million, down from $158.1 million as of June 30, 2025 [7] - Total revenue for Q3 2025 was $6.0 million, a significant decrease from $33.4 million in Q3 2024, primarily due to the completion of obligations in collaborations [8] - Total operating expenses decreased to $21.7 million in Q3 2025 from $29.3 million in Q3 2024, with research and development expenses at $15.3 million [8][9] Corporate Updates - The company appointed Rachael Lester as Senior Vice President and Chief Business Officer in October 2025 [11] - CytomX has established collaborations with major companies in oncology, including Bristol Myers Squibb, Amgen, and Moderna, focusing on bispecific immunotherapies [11][12]

Financial Performance - Total revenues for the three months ended September 30, 2025, were $5,963,000, a decrease from $33,432,000 in the same period of 2024, representing a decline of approximately 82.1%[19] - The net loss for the three months ended September 30, 2025, was $14,229,000, compared to a net income of $5,736,000 for the same period in 2024, indicating a significant shift in performance[19] - Net income for the nine months ended September 30, 2025, was $9,142,000, a decrease of 29% compared to $12,993,000 for the same period in 2024[26] - Total revenue for the three months ended September 30, 2025, was $5.96 million, a decrease from $33.43 million in the same period of 2024, while total revenue for the nine months ended September 30, 2025, was $75.54 million, down from $100.01 million in 2024[47] - The accumulated deficit as of September 30, 2025, was $682.4 million, slightly improved from $691.6 million at the end of 2024[182] Expenses and Costs - Operating expenses for the three months ended September 30, 2025, totaled $21,731,000, down from $29,321,000 in the same period of 2024, reflecting a decrease of about 26.0%[19] - Research and development expenses for the nine months ended September 30, 2025, were $47,493,000, down from $68,592,000 in the same period of 2024, a decrease of approximately 30.8%[19] - General and administrative expenses for the three months ended September 30, 2025, decreased by $1.5 million to $6.4 million compared to the same period in 2024, primarily due to lower personnel and legal expenses[152] - The Company recorded $2.9 million of stock-based compensation expense related to stock option plans for the nine months ended September 30, 2025[96] - The Company recorded $1.1 million of stock-based compensation expense related to time-based RSUs for the nine months ended September 30, 2025[99] Assets and Liabilities - Total current assets increased to $149,217,000 as of September 30, 2025, compared to $107,305,000 as of December 31, 2024, marking an increase of approximately 38.9%[16] - Total liabilities decreased to $50,865,000 as of September 30, 2025, down from $120,989,000 as of December 31, 2024, representing a reduction of about 57.9%[16] - Stockholders' equity improved to $107,389,000 as of September 30, 2025, compared to a deficit of $456,000 as of December 31, 2024, indicating a positive turnaround[16] Cash Flow and Financing - The company had cash and cash equivalents of $34,185,000 as of September 30, 2025, down from $38,052,000 as of December 31, 2024, a decrease of about 2.3%[16] - Cash provided by financing activities increased significantly to $93.8 million in 2025 from $5.3 million in 2024, mainly due to $93.4 million from common stock issuance[170][171] - The Company completed a public offering in May 2025, raising approximately $93.4 million from the sale of 76,923,076 shares at $1.30 per share[91] - The company expects existing capital resources to fund operations into the second quarter of 2027, but may need to raise additional capital in the future[163] Clinical Development and Research - The company’s PROBODY® therapeutic technology platform is designed for "conditional activation" of drug candidates in the tumor microenvironment, aiming to improve cancer treatment outcomes[29] - The IND for CX-2051 was allowed to proceed by the FDA in January 2024, with a Phase 1 clinical trial commencing in April 2024[124] - CX-2051 was generally well-tolerated, with 94% of patients achieving disease control, and no Grade 4 or 5 treatment-related adverse events reported as of the data cutoff[128] - The Company initiated dose expansions for CX-2051, aiming to enroll approximately 100 patients by the first quarter of 2026[129] - A Phase 1b study of CX-2051 in combination with bevacizumab is expected to begin enrollment in the first quarter of 2026[130] Collaborations and Agreements - Astellas Pharma's collaboration resulted in an upfront payment of $80 million and potential milestone payments totaling approximately $1.6 billion, with tiered royalties from high-single digits to mid-teens percentages on future sales[59] - The collaboration with Bristol Myers Squibb included an upfront payment of $50 million and potential contingent payments of up to $25 million for additional targets[65] - The Moderna Agreement included an upfront payment of $35 million and potential milestone payments of up to $1.2 billion, with tiered royalties on global net sales[74] - The Regeneron Agreement includes an upfront fee of $30.0 million and potential milestone payments of up to approximately $0.8 billion, with additional payments of up to $1.2 billion if the collaboration is expanded[78] Risks and Challenges - The company faces risks related to the lengthy and expensive clinical development process, which may not yield successful outcomes[180] - The company may face significant delays in clinical trials if patient enrollment is insufficient, particularly for trials targeting specific tumor types[211] - Adverse side effects from the company's product candidates could result in significant revenue loss and negatively impact business operations[207] - The company’s ability to raise additional funds may be limited due to declining stock prices and unfavorable market conditions[190]

Group 1 - Steven Cress is the Head of Quantitative Strategies at Seeking Alpha, managing quant ratings and factor grades on stocks and ETFs [1][2] - Cress leads Alpha Picks, selecting two attractive stocks to buy each month and determining when to sell them [1][2] - The Seeking Alpha Quant Rating system, created by Cress, interprets data for investors and offers insights on investment directions [2] Group 2 - Cress has over 30 years of experience in equity research, quantitative strategies, and portfolio management [2] - He previously founded CressCap Investment Research, which was acquired by Seeking Alpha in 2018 [2] - Cress has a background in running a proprietary trading desk at Morgan Stanley and leading international business development at Northern Trust [2]