IPO Report: CytomX Therapeutics (CTMX)

Francis Gaskins |

CytomX Therapeutics IPO, CytomX Therapeutics IPO date, CytomX Therapeutics IPO price, stocks to buy now, IPOs this week, small-cap stocks

CytomX Therapeutics (CTMX) is an oncology-focused biopharmaceutical company pioneering a novel class of antibody therapeutics based on its Probody technology platform. The company is based in South San Francisco, CA.

Six other companies are scheduled to IPO for the week of Oct. 5. The full IPO calendar is available at IPO Premium.

SEC Documents

Manager, Joint-managers: BofA Merrill Lynch, Jefferies, and Cowen and Company

Co-managers: Oppenheimer & Co

End of lockup (180 days): Tuesday, April 5, 2016

End of 10-day quiet period: Sunday, October 18, 2015

CTMX scheduled a $97 million IPO with a market capitalization of $524 million at a price range midpoint of $15 for Thursday, Oct. 8, 2015 on Nasdaq.

CytomX Therapeutics (CTMX) IPO Summary

CTMX is an oncology-focused biopharmaceutical company pioneering a novel class of antibody therapeutics based on its Probody technology platform.

CTMX is using its platform to create proprietary cancer immunotherapies against clinically-validated targets as well as to develop first-in-class cancer therapeutics against novel targets.

CytomX Therapeutics (CTMX) IPO Valuation

Glossary
Pre-IPO grade-score summary
http://gaskinsco.com/scr-rate.htm
Many IPOs in today’s environment are graded C+ and scored 7.
If the pre-IPO grade is below C+ or the score is below 7,
then our analysts may have some concerns about the company’s
outlook and/or its market segment.
If the pre-ipo grade is above C+ or the score is above 7,
then our analysts believe the company’s overall business outlook is very favorable.
C = unprofitable, C+ = profitable

Accumulated deficit (mm)

.

.

-$93

     

Per share dilution

.

.

-$10.68

     
             

Valuation Ratios

Mrkt Cap (mm)

Price /Sls

Price /Erngs

Price /BkVlue

Price /TanBV

% offered in IPO

CytomX Therapeutics (CTMX)

$524

68.9

-21.8

3.4

3.5

19%

Annualizing June 6 mos

       
             

SCORECARD

.

Mgt

Market

Market Do-

Proprie-

Total

1-5, 5 is high

.

.

Grwth

mination

tary

rating

20 is perfect

.

2

2.5

0

1.5

C, 6

CytomX Therapeutics (CTMX) IPO Conclusion

Neutral, C, 6

Pfizer may purchase $5mm

Bristo Myers Squibb (BMS) may purchase $10mm

Price to book 3.4

P/E -22 indicating moderate cash burn relative to market cap

CytomX Therapeutics (CTMX) Business

CTMX is an oncology-focused biopharmaceutical company pioneering a novel class of antibody therapeutics based on its Probody technology platform.

CTMX is using its platform to create proprietary cancer immunotherapies against clinically-validated targets as well as to develop first-in-class cancer therapeutics against novel targets.

CTMX believes that its Probody platform will allow CTMC to improve the combined efficacy and safety profile, or therapeutic window, of monoclonal antibody modalities including cancer immunotherapies, antibody drug conjugates (“ADCs”) and T-cell-recruiting bispecific antibodies.

CTMX’s Probody therapeutics are designed to take advantage of unique conditions in the tumor microenvironment to enhance the tumor-targeting features of an antibody and reduce drug activity in healthy tissues.

CTMX is currently developing Probody therapeutics that address clinically-validated cancer targets in immuno-oncology, such as PD-L1, as well as novel targets, such as CD-166, that are difficult to drug and lead to concerns about damage to healthy tissues, or toxicities.

Planned Clinical Trial Development

(does not currently have any product candidates in clinical trials)

Includes:

(i) the development of CX-072, including planned Phase 1 clinical trials and product candidate manufacturing;

(ii) the development of Probody therapeutic directed against CD-166, including planned Phase 1 clinical trials and product candidate manufacturing;

(iii) research and development activities, including discovery of additional cancer immunotherapies and first-in-class therapeutics

CytomX Therapeutics (CTMX) Collaborations

Revenue to date has been primarily derived from non-refundable license payments and reimbursements for research and development expenses under our research, collaboration, and license agreements.

In addition to its proprietary programs, CTMX is collaborating with strategic partners including Bristol-Myers Squibb Company (“BMS”), Pfizer Inc. (“Pfizer”) and ImmunoGen, Inc. (“ImmunoGen”) to develop selected Probody therapeutics.

CTMX’s broad technology platform and lead product candidates are supported by a decade of thorough scientific research and strong intellectual property, and CTMX is advancing these candidates toward clinical trials.

CTMX’s vision is to transform lives with safer, more effective therapies. To realize this vision CTMX is executing on its mission of changing the treatment of cancer by urgently advancing its Probody pipeline.

The premise of CTMX’s Probody platform is to apply the prodrug concept to create a therapeutic antibody that remains inactive until it reaches the tumor.

Probody therapeutics therefore have the potential to produce additional tumor specificity and enhanced safety profiles because they are designed to have limited interaction with their molecular targets in healthy tissue.

This approach of dosing drugs in a form such that they are only activated after reaching certain tissues is called the prodrug approach, and has been used with many small molecule drugs, but has never before been effectively pursued using therapeutic antibodies.

Cancer Research

Cancer is the second leading cause of mortality in the United States and accounts for nearly one in every four deaths.

Early cancer research and treatment relied on relatively non-specific and highly toxic small molecule chemotherapies.

Over the last twenty years, a new paradigm of cancer research and treatment has emerged that is focused on more targeted therapies, including monoclonal antibody modalities, which represent some of the most effective and top-selling therapies on the market today.

The leading three monoclonal antibodies for cancer generated more than $20 billion in global sales in 2014.

Immuno-oncology

More recently, immuno-oncology has emerged as a promising new field of cancer therapy that aims to enhance anti-tumor immune responses by, for example, overcoming the suppressive mechanisms that cancer cells have developed to evade the immune system.

These therapies have shown the potential to provide dramatic efficacy and to extend survival, even in cancers in which conventional therapies, such as surgery, chemotherapy and radiotherapy, have failed. In addition, new classes of monoclonal antibody modalities have also reached the market. These new classes include ADCs and bispecific antibodies, which have more potency than first-generation antibodies.

Despite these advancements, many therapeutic antibodies are limited by a suboptimal therapeutic window.

For example, the targets of antibody therapies are often found not only on tumors but also on healthy tissue, leading to toxicities.

Consequently, there remains a significant need for therapeutics that are more efficacious, safe and tolerable.

CTMX believes its technology has the potential to address this need and represents the next evolution of targeted cancer therapies.

CytomX Therapeutics (CTMX) Intellectual Property

CTMX believes that it has a strong global intellectual property position and substantial know-how and trade secrets relating to its Probody technology, platform and product candidates.

CTMX’s patent portfolio as of September 10, 2015 contains six United States (“U.S.”) issued patents owned solely by CytomX and three U.S. issued patents that CTMX co-owns with UCSB. CTMX also has 27 U.S. pending applications as well as 73 non-U.S. pending applications owned solely by CytomX, as well as one U.S. pending application and six non-U.S. pending applications that CTMX co-owns with UCSB. CTMX has exclusively licensed UCSB’s rights in the co-owned issued and pending patents.

CytomX Therapeutics (CTMX) Competition

These competitors generally fall within the following categories:

Cancer immunotherapies:
AdaptImmune LLC, AstraZeneca PLC, BMS, GlaxoSmithKline plc, Idera Pharmaceuticals, Inc., Immune Design Corp, Merck & Co., Inc., NewLink Genetic Corporation, Novartis AG, Pfizer, Roche Holding Ltd and Sanofi SA.

Antibody drug conjugates: ImmunoGen and Seattle Genetics, Inc.
Immune-based treatments for cancer, such as CAR-T, TCR therapies, and Dendritic cell based therapies: Argos Therapeutics, Inc., Bellicum Pharmaceuticals, Inc., Biovest International, Inc., Bluebird bio, Inc., Celgene Corporation, Cellectis SA, ImmunoCellular Therapeutics, Ltd., Inovio Pharmaceuticals, Inc., Intrexon Corporation, Juno Therapeutics, Inc., Kite Pharma, Inc., NantKwest, Inc., Northwest Biotherapeutics, Inc., Novartis AG, Pfizer and Valeant Pharmaceuticals.

CytomX Therapeutics (CTMX) 5% shareholders pre-IPO

Third Rock Ventures, L.P.          30.7%

Canaan IX L.P. 17.3%

Entities affiliated with Fidelity Management and Research Company        8.7%                             CytomX Therapeutics Holdings, LLC   8.0%

Roche Finance Ltd        6.7%

Pfizer Inc.         5.7%

CytomX Therapeutics (CTMX) Dividends

No dividends are planned.

CytomX Therapeutics (CTMX) IPO Use of Proceeds

CTMX expects to receive $90 million from its IPO and use it for the following:

$25.0 million to $35.0 million for the development of CX-072, including its planned Phase 1 clinical trials and product candidate manufacturing;

$15.0 million to $20.0 million for the development of its Probody therapeutic directed against CD-166, including its planned Phase 1 clinical trials and product candidate manufacturing; and

$25.0 million to $35.0 million for research and development activities, including discovery of additional cancer immunotherapies and first-in-class therapeutics directed against difficult-to-drug targets and continued development of its Probody technology platform.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Companies

Symbol Name Price Change % Volume
CTMX CytomX Therapeutics Inc. 12.12 -0.16 -1.30 77,658

Comments

Emerging Growth

New Age Farm Inc.

New Age Farm Inc is engaged in the development of the agriculture based business in Langley, British Columbia.

Private Markets

BioSculpture Technology, Inc.

BioSculpture Technology, Inc. (“BST”) is a commercial-stage medical device manufacturer of liposuction surgical instruments for surgeons. It offers the FDA-cleared Twin Cannula Assisted Liposuction ("TCAL") Airbrush Liposculptor II® controllers, Airbrush®…

Santo Diablo Mezcal

Santo Diablo Mezcal has been created to capitalize on a boom sector of the beverage market currently full of many small unmemorable products by producing one sexy, household, easily recognizable…