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CytomX (CTMX) Stock Surges on Oncology Deal With Regeneron

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Shares of clinical-stage, oncology-focused biopharmaceutical company CytomX Therapeutics, Inc. (CTMX - Free Report) skyrocketed 32.2% after the company announced a collaboration and licensing agreement with biotech giant, Regeneron Pharmaceuticals, Inc. (REGN - Free Report) .

Both companies have collaborated to create conditionally-activated investigational bispecific cancer therapies, utilizing CytomX’s Probody therapeutic platform and Regeneron’s Veloci-Bi bispecific antibody development platform.

Per the agreement, Regeneron and CytomX will collaborate on the discovery activities to identify and validate conditionally active bispecific antibodies. Regeneron will be responsible for funding preclinical and clinical development and commercialization activities. In exchange, CytomX will receive an upfront payment of $30 million and will be eligible to receive future target nomination payments and preclinical, clinical, and commercial milestones of up to $2 billion. CytomX is also eligible to receive tiered global net sales royalties.

Shares of CytomX have plunged 63% in the year so far compared with the industry’s decrease of 19.5%.

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The collaboration with Regeneron is a positive for the company, given Regeneron’s financial prowess and expertise.

CytomX’s pipeline comprises seven therapeutic candidates across multiple treatment modalities, including antibody-drug conjugates (ADCs), T-cell engaging bispecific antibodies, and immune modulators such as cytokines and checkpoint inhibitors.

CytomX also has strategic collaborations with bigwigs like AbbVie (ABBV - Free Report) , Amgen (AMGN - Free Report) , Astellas, and Bristol Myers Squibb. 

CX-2029 is an investigational conditionally activated ADC directed toward CD71. It has demonstrated encouraging antitumor activity in patients with squamous non-small cell lung cancer and is being developed in collaboration with AbbVie.

The company has partnered with Bristol Myers Squibb for BMS-986249 and BMS-986288. It has also collaborated with Amgen for CX-904, a conditionally activated T-cell-engaging bispecific antibody targeting the epidermal growth factor receptor on tumor cells and the CD3 receptor on T cells.

CytomX currently carries a Zacks Rank #3 (Hold).  You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

 

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