CytomX drops on $250 mln equity raise

CytomX Therapeutics CTMX.O shares down 3.7% before the bell at $5.25 after $250 mln follow-on priced

South San Francisco, California-based firm late Tues announced ~47.2 mln shares, including pre-funded warrants to buy ~1.2 mln shares, at $5.30

Offering price represents 2.8% discount to last close. CMTX shares retreated >19% on Tues after co commenced offering following promising colorectal cancer drug data

Stock surged 44% on Mon after co said the drug, varsetatug masetecan (Varseta-M), continued to shrink tumors in patients who had already tried several treatments, in an early-stage trial

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

Jefferies, Piper Sandler, Cantor and Barclays joint bookrunners

As of Tues, stock up ~28% YTD

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