CytomX(US:CTMX)2019-11-08 02:19Financial Data and Key Metrics Changes - The company ended Q3 2019 with cash, cash equivalents, and investments totaling $325.7 million, down from $436.1 million as of December 31, 2018, and $349.1 million as of June 30, 2019 [38] - Research and development expenses were $28 million for the quarter, compared to $27.5 million in the corresponding period in 2018, reflecting an increase in personnel-related expenses and clinical trial activities [39] - General and administrative expenses were $8.5 million, up from $8.1 million in the same period in 2018 [40] - Revenue for the quarter was $10.7 million, down from $12.5 million in the corresponding period in 2018, primarily due to a decrease in revenue under the CD71 agreement with AbbVie [40] Business Line Data and Key Metrics Changes - The lead clinical asset CX-072 has shown activity as a monotherapy in multiple tumor types, with a recent Phase 1 study showing a 19% overall response rate in a heavily pretreated patient population [23][25] - CX-2009, a Probody drug conjugate targeting CD166, is in the dose refinement stage after completing dose escalation, with next steps anticipated by the end of 2019 [21] Market Data and Key Metrics Changes - The company is focusing on the unmet medical need in advanced melanoma, where approximately 40% of patients do not respond to initial PD inhibition, and over 25% discontinue treatment due to toxicity [28][29] - The combination of CX-072 with ipilimumab is expected to improve outcomes in patients with high unmet medical needs, particularly in relapsed or refractory melanoma [30] Company Strategy and Development Direction - CytomX aims to transition from a research-focused platform company to an integrated R&D organization with multiple emerging product candidates [10] - The company is leveraging its Probody platform to create differentiated anti-cancer therapies, with a focus on targeting therapeutic antibodies into disease tissue [8][9] - The partnership with Bristol Myers Squibb (BMS) is advancing with a randomized Phase 2a expansion cohort for a Probody version of ipilimumab, which could enhance the therapeutic index [32][34] - The collaboration with AbbVie continues to progress with CX-2029, a Probody drug conjugate targeting CD71, with co-development and profit-sharing rights retained by CytomX [36] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential of CX-072 in combination therapies, particularly in melanoma, and highlighted the importance of addressing the unmet needs in this area [30][31] - The company anticipates a data-rich 2020, with additional pipeline guidance expected before year-end [41][79] Other Important Information - The appointment of Dr. Amy Peterson as Chief Development Officer is expected to enhance the company's clinical development strategies [7][30] - The company is focused on advancing its clinical pipeline while exploring the full potential of its Probody platform [41] Q&A Session Summary Question: What is the gating factor for CX-2009? - The company is focusing on dose refinements and understanding the relationship between ocular prophylaxis and patient duration on drugs, with an update expected by year-end [43] Question: What response rate is expected for CX-072 in refractory melanoma? - The company is optimistic based on previous data showing a 19% response rate in a heavily pretreated population but is not providing specific guidance at this stage [45] Question: How is the company approaching triple-negative breast cancer? - The company sees potential for CX-072 as a combination partner for other molecules and is open to partnerships at the right time [47] Question: What is the status of the Amgen partnership? - The Amgen partnership is currently focused on preclinical research, with no specific updates at this time [51] Question: What is the expected timeline for data from the AbbVie CD71 program? - No specific timing for updates on the CD71 program has been provided [51] Question: What is considered clinical success for CX-072? - The company is not setting specific goals but is optimistic based on previous response rates observed [57] Question: What is the regulatory strategy for advancing CX-072? - The regulatory path will depend on the activity observed in the ongoing studies, with a focus on creativity in collaboration with health authorities [63] Question: What percentage of first-line melanoma patients receive combination therapy? - Treatment patterns vary, with community physicians often focusing on minimizing side effects and may withhold CTLA4 agents until necessary [77]