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C4 Therapeutics (CCCC) Soars on Oncology Deal With Merck
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C4 Therapeutics, Inc. (CCCC - Free Report) or C4T announced that it has entered into an exclusive licensing and collaboration agreement with pharma giant Merck (MRK - Free Report) to discover and develop degrader-antibody conjugates (“DACs”) with an initial focus on one oncology target. Shares of C4T surged 98.3% on Dec 12 following the announcement of the deal.
An emerging modality, DAC is designed to selectively target and neutralize disease-causing proteins in cancer cells.
The partnership is looking to leverage C4T’s leading protein degradation technology with Merck’s expertise in biological chemistry.
C4T will be using its proprietary TORPEDO platform to develop degrader while Merck will provide antibody conjugation to create DACs in the discovery phase.
Per the terms of the agreement, C4T and Merck will develop DACs directed to an undisclosed oncology target together. C4T is eligible to receive an upfront payment of $10 million from MRK for the deal, along with milestone payments of approximately $600 million and tiered royalties on net sales if the product is commercialized upon potential approval.
Merck will lead the preclinical and clinical development of DAC candidates and will be responsible for the commercialization upon successful development and potential approval of the candidates.
Shares of C4T have plunged 71.4% in the past year compared with the industry’s decline of 23.7%.
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Per the deal, Merck will have the option to extend the above collaboration by including three additional targets, which in return could generate additional milestones and royalties for C4T. C4T would be eligible to receive up to almost $2.5 billion in potential payments if Merck exercises its options to extend the collaboration.
The deal looks like a good strategic fit for C4T as it provides the company with the much-needed funds to support its pipeline development and continue its research activities.
In the past 60 days, estimates for Entrada Therapeutics’ 2023 loss per share have narrowed from $2.07 to 9 cents. Meanwhile, loss per share estimates for 2024 have narrowed from $2.35 to $2.04. In the past year, shares of TRDA have decreased 34.5%.
Earnings of Entrada Therapeutics beat estimates in three of the last four quarters while missing the same on the remaining occasion. TRDA delivered a four-quarter average earnings surprise of 70.68%.
In the past 60 days, estimates for Puma Biotechnology’s 2023 earnings per share have improved from 67 cents to 72 cents. During the same period, earnings per share estimates for 2024 have moved up from 55 cents to 64 cents. In the past year, shares of PBYI have lost 24.1%.
Earnings of Puma Biotechnology beat estimates in three of the last four quarters while missing the same on the remaining occasion. PBYI delivered a four-quarter average earnings surprise of 76.55%.
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C4 Therapeutics (CCCC) Soars on Oncology Deal With Merck
C4 Therapeutics, Inc. (CCCC - Free Report) or C4T announced that it has entered into an exclusive licensing and collaboration agreement with pharma giant Merck (MRK - Free Report) to discover and develop degrader-antibody conjugates (“DACs”) with an initial focus on one oncology target. Shares of C4T surged 98.3% on Dec 12 following the announcement of the deal.
An emerging modality, DAC is designed to selectively target and neutralize disease-causing proteins in cancer cells.
The partnership is looking to leverage C4T’s leading protein degradation technology with Merck’s expertise in biological chemistry.
C4T will be using its proprietary TORPEDO platform to develop degrader while Merck will provide antibody conjugation to create DACs in the discovery phase.
Per the terms of the agreement, C4T and Merck will develop DACs directed to an undisclosed oncology target together. C4T is eligible to receive an upfront payment of $10 million from MRK for the deal, along with milestone payments of approximately $600 million and tiered royalties on net sales if the product is commercialized upon potential approval.
Merck will lead the preclinical and clinical development of DAC candidates and will be responsible for the commercialization upon successful development and potential approval of the candidates.
Shares of C4T have plunged 71.4% in the past year compared with the industry’s decline of 23.7%.
Per the deal, Merck will have the option to extend the above collaboration by including three additional targets, which in return could generate additional milestones and royalties for C4T. C4T would be eligible to receive up to almost $2.5 billion in potential payments if Merck exercises its options to extend the collaboration.
The deal looks like a good strategic fit for C4T as it provides the company with the much-needed funds to support its pipeline development and continue its research activities.
Zacks Rank & Stocks to Consider
C4T currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the biotech sector are Entrada Therapeutics, Inc. (TRDA - Free Report) and Puma Biotechnology, Inc. (PBYI - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 60 days, estimates for Entrada Therapeutics’ 2023 loss per share have narrowed from $2.07 to 9 cents. Meanwhile, loss per share estimates for 2024 have narrowed from $2.35 to $2.04. In the past year, shares of TRDA have decreased 34.5%.
Earnings of Entrada Therapeutics beat estimates in three of the last four quarters while missing the same on the remaining occasion. TRDA delivered a four-quarter average earnings surprise of 70.68%.
In the past 60 days, estimates for Puma Biotechnology’s 2023 earnings per share have improved from 67 cents to 72 cents. During the same period, earnings per share estimates for 2024 have moved up from 55 cents to 64 cents. In the past year, shares of PBYI have lost 24.1%.
Earnings of Puma Biotechnology beat estimates in three of the last four quarters while missing the same on the remaining occasion. PBYI delivered a four-quarter average earnings surprise of 76.55%.