CytomX retreats ahead of planned $250 mln equity raise after promising cancer drug data

CytomX Therapeutics CTMX.O shares down 11.6% to $5.97 on Tues as it seeks equity after promising trial data for its colorectal cancer drug

CTMX shares surged 44% to close at $6.75 on Mon after co said varsetatug masetecan (Varseta-M) continued to shrink tumors in patients who had already tried several treatments, in an early-stage trial

Subsequently, co commenced $250 mln offering comprised of stock and pre-funded warrants after market close on Mon

It expects to use net offering proceeds for continued development of Varseta-M and other pipeline programs, remainder for capex, and other purposes

Jefferies, Piper Sandler, Cantor and Barclays joint bookrunners

South San Francisco, California-based CTMX has ~170.2 mln shares outstanding for about $1.1 bln market cap as of Mon

Reacting to Varseta-M update and co's 2025 results, Guggenheim early Tues hiked its PT from $10 to $15, saying it now forecasts $1.3 bln peak adjusted sales for the drug in the U.S. ($2.4 bln unadjusted)

All 9 brokerages covering the stock are bullish; median PT $10.50, per LSEG data

With move on the session, stock up ~40% YTD. It was trading around 60 cents a year ago