C4 Therapeutics(CCCC) - 2025 Q3 - Quarterly Report

Financial Performance - Total current assets decreased from $257,767,000 as of December 31, 2024, to $206,864,000 as of September 30, 2025, representing a decline of approximately 19.7%[20] - Revenue from collaboration agreements for the three months ended September 30, 2025, was $11,230,000, down 26.1% from $15,362,000 for the same period in 2024[23] - Total operating expenses increased to $45,642,000 for the three months ended September 30, 2025, compared to $43,606,000 for the same period in 2024, marking an increase of 4.7%[23] - The net loss for the three months ended September 30, 2025, was $32,166,000, compared to a net loss of $24,666,000 for the same period in 2024, reflecting an increase in loss of 30.4%[23] - For the nine months ended September 30, 2025, the net loss was $84.5 million, compared to a net loss of $70.7 million for the same period in 2024, reflecting an increase in losses of approximately 19.7%[38] - The company reported a net loss of $84.5 million for the nine months ended September 30, 2025, compared to a net loss of $70.7 million for the same period in 2024, resulting in an accumulated deficit of $718.2 million as of September 30, 2025[167] Assets and Liabilities - Cash and cash equivalents increased from $55,499,000 as of December 31, 2024, to $58,809,000 as of September 30, 2025, an increase of approximately 4.1%[20] - The accumulated deficit grew from $633,699,000 as of December 31, 2024, to $718,207,000 as of September 30, 2025, indicating an increase of 13.3%[20] - The total liabilities decreased from $133,616,000 as of December 31, 2024, to $111,080,000 as of September 30, 2025, a reduction of approximately 16.8%[20] - The total stockholders' equity decreased from $215,986,000 as of December 31, 2024, to $154,408,000 as of September 30, 2025, a decline of approximately 28.5%[20] - As of September 30, 2025, the company had cash, cash equivalents, and marketable securities totaling approximately $199.8 million[140] Research and Development - Research and development expenses for the nine months ended September 30, 2025, were $79,258,000, slightly up from $78,124,000 for the same period in 2024, an increase of 1.5%[23] - The company continues to focus on research and development activities, leveraging its proprietary TORPEDO platform to advance targeted oncology programs[36] - The company expects research and development expenses to continue to increase substantially in connection with planned preclinical and clinical development activities[124] - The company anticipates significant operating losses to continue as it advances preclinical programs and product candidates through clinical development[139] - Cemsidomide, the company's lead product candidate, is in clinical development for multiple myeloma and has shown compelling anti-myeloma activity in recent trials[114] Collaborations and Agreements - Under the Pfizer Agreement, Pfizer will supply elranatamab for a Phase 1b trial at no cost, while the company will sponsor and pay for the trial costs[58] - The MKDG Agreement includes an upfront cash payment of $16 million and potential milestone payments totaling approximately $740 million, plus tiered royalties on net sales[60] - The company earned a $1 million milestone payment in April 2025 for achieving a discovery milestone related to the MKDG collaboration[60] - The Betta Pharma License Agreement includes an upfront cash payment of $10.0 million and potential milestone payments of up to $357.0 million, plus tiered royalties on net sales in Greater China[66] - The company received a $45.0 million nonrefundable upfront payment from Biogen as part of the collaboration agreement[86] Market and Competition - The company faces substantial competition in the targeted protein degradation (TPD) space from numerous biotechnology and pharmaceutical firms, including Arvinas, Inc. and BioTheryX, Inc.[212] - Competitors possess significantly greater financial resources and expertise in R&D, manufacturing, and regulatory approvals, which may hinder the company's market position[214] - The competition includes not only other TPD therapies but also small molecule, antibody, T cell, and gene therapies, which could impact the company's market entry[213] Financial Strategy and Future Outlook - The company may need to obtain substantial additional financing to support its operations and long-term business plan, as it cannot estimate future capital requirements due to various risks and uncertainties[147] - The company has entered into collaborations with partners such as Roche and Biogen, but does not have any committed external sources of funds as of September 30, 2025[147] - The company anticipates incurring significant expenses and increasing operating losses for at least the next several years due to ongoing research and development activities[168] - The company will need to raise substantial additional capital to fund product development and commercialization efforts[176] Clinical Trials and Regulatory Challenges - The company has not yet demonstrated the ability to successfully complete clinical trials or obtain marketing approvals for its product candidates[178] - The regulatory approval process for the company's novel product candidates may be more expensive and time-consuming compared to other therapeutics[188] - The company may face unforeseen expenses and challenges as it transitions from a research-focused entity to one capable of supporting commercial activities[179] - Clinical trials are lengthy and expensive, with significant uncertainty regarding outcomes, and the company may incur unexpected costs or delays[205]