CytomX(CTMX) - 2021 Q1 - Quarterly Report

Financial Performance - Revenues for the three months ended March 31, 2021, were $15,971 thousand, a decrease of 67.8% compared to $49,593 thousand for the same period in 2020 [22]. - Total operating expenses decreased to $31,598 thousand for the three months ended March 31, 2021, down 39.7% from $52,386 thousand in the same period in 2020 [22]. - The net loss for the three months ended March 31, 2021, was $15,554 thousand, compared to a net income of $12,205 thousand for the same period in 2020 [22]. - The company reported a comprehensive loss of $15,550 thousand for the three months ended March 31, 2021, compared to a comprehensive income of $12,484 thousand for the same period in 2020 [22]. - Total revenue from collaboration partners for the three months ended March 31, 2021, was $15.971 million, a decrease of 67.8% compared to $49.593 million for the same period in 2020 [68]. - The Company recognized revenue of $1.2 million related to the AbbVie Agreements for the three months ended March 31, 2021, compared to $30.1 million for the same period in 2020 [76]. - The Company recognized revenue of $4.8 million for the three months ended March 31, 2021, compared to $0.4 million for the same period in 2020 [89]. - The Company recognized revenue of $7.4 million for the three months ended March 31, 2021, compared to $17.4 million for the same period in 2020 [100]. - Revenue from AbbVie decreased by $28.868 million primarily due to a $40 million milestone payment recognized in Q1 2020 [163]. - Revenue from Astellas increased by $4.369 million due to the recognition of an $80 million upfront payment over a five-year estimated research service period [163]. - Revenue from Bristol Myers Squibb decreased by $10 million primarily due to the full recognition of a $10 million milestone payment in February 2020 [163]. Assets and Equity - Total current assets increased to $400,008 thousand as of March 31, 2021, from $324,013 thousand as of December 31, 2020, representing a 23.5% increase [19]. - Cash and cash equivalents increased to $329,666 thousand as of March 31, 2021, from $191,859 thousand as of December 31, 2020, marking a 71.8% increase [19]. - Total stockholders' equity increased to $146,022 thousand as of March 31, 2021, from $49,803 thousand as of December 31, 2020, reflecting a significant increase of 193.5% [19]. - The total fair value of the Company's short-term investments as of March 31, 2021, was $346.248 million, an increase from $256.298 million as of December 31, 2020 [66]. - As of March 31, 2021, the company had cash, cash equivalents, and short-term investments totaling $393.8 million, an increase from $316.1 million as of December 31, 2020 [176]. Cash Flow - The company’s cash flows from operating activities resulted in a net cash used of $29,940 thousand for the three months ended March 31, 2021, compared to $49,737 thousand for the same period in 2020 [28]. - Cash used in operating activities was $29.9 million for the three months ended March 31, 2021, a decrease from $49.7 million in the same period of 2020 [180]. - Cash provided by investing activities was $59.0 million for the three months ended March 31, 2021, compared to $2.4 million in the same period of 2020 [184]. - Cash provided by financing activities amounted to $108.7 million during the three months ended March 31, 2021, primarily from a follow-on public offering [187]. Research and Development - Research and development expenses for the three months ended March 31, 2021, were $22.371 million, down $20.443 million from $42.814 million in the same period of 2020 [164]. - The decrease in research and development expenses was mainly due to a $11.2 million reduction in licensing expenses and an $8.5 million decrease in laboratory contracts and services [164]. - The company expects research and development expenses to increase substantially in the future as product candidates advance through clinical trials [151]. - The company has not experienced any material differences between accrued costs and actual costs incurred in research and development activities [53]. - Research and development expenses include costs directly attributable to R&D programs, with all costs expensed as incurred [54]. Clinical Trials and Product Development - The lead product candidates, praluzatamab ravtansine and CX-2029, are currently in Phase 2 clinical studies [132]. - The company is currently enrolling patients in a three-arm study for praluzatamab ravtansine, targeting approximately 40 evaluable patients per arm [133]. - CX-2043, a preclinical agent, has shown potent anti-tumor activity but will not have an IND submission in 2021 due to manufacturing delays [135]. - The company has paused new patient enrollment in its Phase 2 clinical trial of praluzatamab ravtansine due to COVID-19, which has caused delays in patient recruitment and clinical site initiations [208]. - The company relies on third parties for conducting clinical trials and preclinical studies, and any failure by these parties could materially affect its development programs [203]. - The company has not yet demonstrated the ability to successfully complete clinical trials or obtain regulatory approvals for its product candidates [215]. - The company’s approach to therapeutic treatment development is based on unproven novel technologies, which may not result in marketable products [203]. Market and Competition - The company faces competition from other entities developing cancer treatments, which could adversely affect its ability to commercialize its product candidates [203]. - The actual probability of success for product candidates may be affected by various factors, including safety, efficacy, and competition [151]. - The COVID-19 pandemic may continue to disrupt the company’s research and clinical trials, impacting its financial condition and operational capabilities [212]. - The company’s stock price may be volatile, potentially leading to substantial losses for purchasers of its common stock [203]. Financial Obligations and Future Outlook - The company has an accumulated deficit of $465.7 million as of March 31, 2021, up from $450.1 million at the end of 2020, indicating ongoing significant operating losses [213]. - The company does not expect to generate revenue from product sales until product candidates have advanced through clinical development and obtained regulatory approval [148]. - The company expects to need to raise substantial additional funds to advance the development of its product candidates, with no guarantee that this funding will be available on acceptable terms [217]. - The company has not entered into any off-balance sheet arrangements and does not have holdings in variable interest entities [190]. - There were no material changes in contractual obligations during the three months ended March 31, 2021, compared to the previous year [188].