Cautious Outlook for CytomX Therapeutics Amid Pipeline Challenges and Strategic Setbacks

H.C. Wainwright analyst Mitchell Kapoor has reiterated their neutral stance on CTMX stock, giving a Hold rating on March 4.

Mitchell Kapoor has given his Hold rating due to a combination of factors impacting CytomX Therapeutics. The discontinuation of the CX-904 program, despite initial positive data in pancreatic cancer, highlights ongoing challenges in their pipeline, particularly in tough-to-treat indications. This decision, made jointly with Amgen, reflects the clinical observations and strategic priorities of both parties, adding to a history of setbacks in advancing PROBODY-based programs.
Furthermore, while the upcoming CX-2051 data in metastatic colorectal cancer could provide a pivotal update, the low benchmark for success in this area tempers expectations. The potential for underwhelming response rates, coupled with CytomX’s negative enterprise value, suggests a cautious outlook. Despite better-than-expected financial results for FY2024, Kapoor remains neutral, awaiting more substantial clinical data to reassess the opportunity for CTMX shares.