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CytomX Therapeutics, Inc. (CTMX)·Q2 2024 Earnings Summary

Executive Summary

  • Q2 revenue of $25.1M grew 1.6% YoY but fell sharply vs Q1’s milestone-heavy $41.5M; GAAP diluted EPS was -$0.08 vs -$0.02 YoY and $0.17 in Q1, driven by higher R&D and a $5M AbbVie milestone payment tied to CX-2051’s Phase 1 start .
  • CX-904 (EGFRxCD3 PROBODY TCE) continued to show encouraging single-agent activity with confirmed partial responses in pancreatic cancer; enrollment is now prioritized in PDAC, NSCLC, and HNSCC. A program update is expected by year‑end 2024, with potential Phase 1b decisions alongside partner Amgen .
  • CX-2051 (EpCAM PROBODY ADC) advanced quickly to cohort 3 in Phase 1 (CRC-focused); initial data expected 1H25. CX-801 (masked IFNα2b) initiated Phase 1 site activation; initial data expected in 2025 (press release specifies 2H25) .
  • Balance sheet remains solid: cash, cash equivalents and investments were $137.2M (down from $150.3M in Q1) with management reiterating runway to end of 2025; Q2 included $10M Astellas milestones, $4.8M ATM proceeds, and the $5M AbbVie payment .

What Went Well and What Went Wrong

  • What Went Well

    • CX-904 clinical signal and safety: “single agent anti-cancer activity and a favorable therapeutic window” for the EGFR‑CD3 combination; no CRS in step‑dosing cohorts to 10 mg; two confirmed PRs in PDAC (2/6 efficacy‑evaluable) .
    • Pipeline execution: CX‑2051 moved into its third dose cohort focused in CRC; CX‑801 Phase 1 site activated; both programs track toward 2025 data (2051 1H25; 801 2025/2H25 in PR) .
    • Partnership leverage and milestones: $10M Astellas preclinical milestones year‑to‑date support non-dilutive funding and validate partner interest in masked TCEs .

  • What Went Wrong

    • Sequential revenue and profit step-down: Q2 revenue $25.1M vs Q1 $41.5M; EPS swung to -$0.08 from $0.17, reflecting timing of Q1 milestones and higher R&D/G&A in Q2 (incl. $5M AbbVie payment) .
    • Elevated operating spend: R&D rose to $25.2M (from $20.7M YoY and $22.1M in Q1) and G&A to $8.4M (from $7.4M YoY), pressuring operating margin in the quarter .
    • Early activity outside PDAC remains to be demonstrated: while signals noted in NSCLC and other EGFR+ tumors, management highlighted the need for more patients to characterize efficacy; CRC activity may require combinations despite PD biomarkers (T‑cell infiltration) .

Financial Results

Income statement snapshot (GAAP)

MetricQ2 2023Q1 2024Q2 2024
Revenue ($M)$24.7 $41.5 $25.1
Total Operating Expenses ($M)$28.1 $29.8 $33.6
Operating Income (Loss) ($M)$(3.3) $11.7 $(8.5)
Net Income (Loss) ($M)$(1.1) $13.8 $(6.5)
EPS – Basic ($)$(0.02) $0.17 $(0.08)
EPS – Diluted ($)$(0.02) $0.17 $(0.08)
Operating Margin (%)-13.6% (calc) 28.1% (calc) -33.7% (calc)
Net Income Margin (%)-4.4% (calc) 33.3% (calc) -26.0% (calc)

Note: Margins computed from reported revenue and operating income/net income cited above.

KPIs and balance sheet items

KPIQ4 2023Q1 2024Q2 2024
Cash, Cash Equivalents & Investments ($M)$174.5 $150.3 $137.2
Deferred Revenue – Current ($M)$132.3 $123.6 $123.8
Deferred Revenue – Non‑Current ($M)$80.0 $59.7 $36.7
R&D Expense ($M, quarterly)$19.4 $22.1 $25.2
G&A Expense ($M, quarterly)$7.8 $7.8 $8.4

Qualitative drivers

  • Q2 revenue uptick YoY was “driven primarily by a higher percentage of completion of research activities related to the Regeneron and Moderna collaborations”; sequential decline reflects absence of Q1’s $10M Astellas milestones recognized in revenue .
  • Q2 operating cash flows reflected $10M Astellas inflows, $4.8M ATM equity proceeds, and a one-time $5M AbbVie payment for CX‑2051 Phase 1 start .

Estimates vs. actuals

  • Wall Street consensus (S&P Global) for Q2 2024 revenue/EPS was unavailable at time of retrieval; comparison to estimates could not be provided. We will update when accessible via S&P Global [GetEstimates attempt – daily limit exceeded].

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Cash RunwayCorporate“Runway to end of 2025” (Q1 call) “Runway to end of 2025” (Q2 call) Maintained
CX‑904 update/next steps2024Phase 1a update by YE24; potential Phase 1b decision with Amgen Program update by YE24; strategic dialogue with Amgen on Phase 1b Maintained
CX‑2051 initial data2025Initial Phase 1a data 1H25 Initial Phase 1a data 1H25 Maintained
CX‑801 initial data2025Initial Phase 1 data in 2025 Initial data 2025; press release specifies 2H25 Refined timing (2H25 in PR)

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4’23 and Q1’24)Current Period (Q2’24)Trend
CX‑904 safety/efficacySet 2H24 data expectations; outlined masking to mitigate CRS/EGFR tox No CRS in step‑dosing to 10 mg; PDAC PRs; focus on PDAC, NSCLC, HNSCC; program update by YE24 Improving safety clarity; early efficacy signal consolidating
Indication prioritizationBroad EGFR+ solids; learning dose/schedule Accelerating PDAC enrollment; adding NSCLC/HNSCC to assess signal Narrowing to highest‑signal tumors
Amgen partnership pathCo‑dev framework, profit‑share option; Phase 1b decision with Amgen after 1a Generate data to enable YE24 strategic dialogue; potential step into 1b Consistent; approaching decision point
Astellas milestones$10M in Q1 for TCE programs $10M YTD milestones; supports cash Sustained partner execution
Pipeline progress (2051/801)2051 first cohort cleared; 801 initiating with Merck supply 2051 in cohort 3; 801 first site activated On‑track toward 2025 readouts
Capital/cash strategyRunway to end‑2025 Runway reiterated; $4.8M ATM used Stable liquidity posture

Management Commentary

  • “We are encouraged by the initial CX‑904 Phase 1a data… single agent anti‑cancer activity and a favorable therapeutic window for the… EGFR and CD3” target pair, underscoring the platform’s potential .
  • “Enrollment is now principally focused in pancreatic cancer… and in non‑small cell lung cancer and head and neck cancer… We are highly focused on generating additional data during the second half of 2024” .
  • On cash: “CytomX finished the second quarter… with $137 million… We expect our cash balance will fund… to the end of 2025” .
  • On CX‑904 safety: “In step‑dosing cohorts up to a target dose of 10 mg… we did not see any cytokine release syndrome… only 1 grade 3 rash across all 35 patients” .
  • On PDAC signal: “Confirmed partial responses in 2 of 6… pancreatic ductal adenocarcinoma… a tumor type… not typically responsive to EGFR inhibition or to immunotherapy” .

Q&A Highlights

  • Correlation of efficacy with EGFR expression: Early read suggests no clear correlation; one deep responder had low EGFR by IHC, indicating TCE mechanism may not require high antigen levels .
  • Indication prioritization and data scope: Target to have a “reasonable number” of PDAC patients by YE, plus initial looks in NSCLC/HNSCC; goal is to enable Amgen dialogue and define Phase 1b .
  • Bar for PDAC meaningfulness: With 2L response rates in single digits, management views the bar as low; early PRs are encouraging .
  • Dosing strategy: Likely step‑dosing in Phase 1b to achieve higher target doses; multiple doses/schedules may be taken forward (Project Optimus approach) .
  • CRC takeaways: Evidence of T‑cell infiltration on‑treatment without objective responses suggests combination strategies may be needed in MSS CRC .

Estimates Context

  • S&P Global consensus for Q2 2024 revenue and EPS was unavailable at time of retrieval due to data access limits. As a result, we cannot provide a vs‑consensus comparison for this quarter. We will update when S&P Global estimates are accessible [GetEstimates attempt – daily limit exceeded].

Key Takeaways for Investors

  • The quarter reinforces platform validity: CX‑904’s safety profile (no CRS in step‑dosing to 10 mg) and PDAC PRs de‑risk the EGFRxCD3 concept and broaden potential across EGFR+ tumors .
  • Near‑term catalyst path: A YE24 CX‑904 program update with Amgen dialogue could trigger Phase 1b expansions; watch for additional PDAC depth and first signals in NSCLC/HNSCC .
  • Sequential P&L volatility reflects milestone timing: Expect continued quarterly variability as collaboration revenue and milestone flows drive top line; Q2 expenses include a one‑time $5M AbbVie payment .
  • Liquidity is adequate through key 2025 readouts (2051 and 801), with partnerships providing non‑dilutive support and optionality for additional milestones .
  • For CRC, translational data (T‑cell infiltration) supports combination hypotheses even as monotherapy responses remain elusive—an important design consideration for future studies .
  • Focus areas for model updates: expense trajectory given advancing clinical programs; deferred revenue burn; potential ATM usage; and the shape/timing of any 904 Phase 1b costs .
  • Stock‑moving events ahead: evidence of durability/depth in PDAC, first objective signals in NSCLC/HNSCC, and Phase 1b initiation decisions could be key re‑rating catalysts .

Citations:

  • Q2 2024 8‑K press release and financials:
  • Q2 2024 earnings call transcript:
  • Q1 2024 8‑K press release and financials; Q1 call:
  • FY 2023 8‑K and Q4 call for comps/background:
  • Q2 2024 standalone press release: