Cash Depletion Worrying Investors in CytomX Therapeutics
December 27, 2022
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Cytomx Therapeutics Intrinsic Value – CYTOMX ($NASDAQ:CTMX) Therapeutics is a biopharmaceutical company focused on the discovery and development of novel antibody therapeutics. They are dedicated to leveraging their innovative Probody technology platform to create new treatments for a wide range of diseases, including cancer and autoimmune diseases. Recently, investors in CYTOMX Therapeutics have been expressing concern about the company’s rate of cash depletion. This has raised questions about the company’s ability to fund their ongoing research and development initiatives. CYTOMX Therapeutics’ rapid cash depletion is largely due to their significant investments in research and development activities. In the past year, CYTOMX Therapeutics has been spending heavily to advance their Probody technology platform and build out their pipeline of new treatments.
This has resulted in a substantial increase in their operating expenses, which has caused their cash balance to decrease rapidly. If CYTOMX Therapeutics cannot generate additional cash flow or secure additional financing, then they may not be able to continue funding their research and development activities. This could result in a significant setback for the company and lead to delays in their product launches. Given the current situation at CYTOMX Therapeutics, investors are right to be concerned about the company’s rate of cash depletion. It is important for the company to secure additional financing or find ways to generate additional cash flow in order to ensure that they can continue funding their research and development activities.
Stock Price
At the time of writing, media sentiment regarding CytomX Therapeutics is mostly negative due to investor concerns about cash depletion. On Friday, CYTOMX THERAPEUTICS stock opened at $1.6 and closed at $1.6, up by 1.3% from last closing price of $1.5. Despite this slight increase, the stock has been on a downward trend for the past few months and investors are getting increasingly concerned about the company’s financial health. The company’s cash burn has been quite high lately due to rising R&D expenses and decreased revenues from licensing and collaboration agreements. Given these worrying financials, investors are concerned that the company may not be able to sustain its operations going forward.
In addition, some investors are concerned that the company may not be able to raise additional capital in the near future due to its poor financial performance. As such, investors remain cautious and uncertain about CytomX’s future prospects. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Cytomx Therapeutics. More…
| Total Revenues | Net Income | Net Margin |
| 71.94 | -97.59 | -135.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Cytomx Therapeutics. More…
| Operations | Investing | Financing |
| -140.59 | -1.8 | 1.14 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Cytomx Therapeutics. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 226.49 | 198.02 | 0.43 |
Key Ratios Snapshot
Some of the financial key ratios for Cytomx Therapeutics are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 5.8% | – | -137.5% |
| FCF Margin | ROE | ROA |
| -197.9% | -160.3% | -27.3% |
VI Analysis – Cytomx Therapeutics Intrinsic Value Calculator
The VI app simplifies the analysis of these fundamentals. The fair value of CYTOMX THERAPEUTICS shares is estimated by the VI Line to be around $4.5, while currently these shares are traded at only $1.6, meaning that currently there is an undervaluation of 65%. This presents an opportunity for investors who are looking to buy shares of CYTOMX THERAPEUTICS. It is important, however, to also consider the risks associated with any investment and to do research into the company before making any decisions. More…
VI Peers
CytomX’s lead product candidate, CX-072, is a CD37-targeting ADC in Phase 1 clinical development for the treatment of hematologic malignancies, solid tumors, and other diseases. The company is also developing CX-2009, an anti-CTLA-4 ADC, in Phase 1 clinical development for the treatment of solid tumors, and CX-2029, an anti-PD-L1 ADC, in Phase 1 clinical development for the treatment of solid tumors. CytomX’s main competitors are IO Biotech Inc, DICE Therapeutics Inc, and Aura Biosciences Inc. IO Biotech is a clinical-stage biopharmaceutical company that develops cancer immunotherapies. DICE Therapeutics is a biopharmaceutical company that develops cancer immunotherapies. Aura Biosciences is a clinical-stage biopharmaceutical company that develops cancer therapeutics.
– IO Biotech Inc ($NASDAQ:IOBT)
Incyte Corporation is a biopharmaceutical company that discovers, develops, and commercializes small molecule drugs to treat serious unmet medical needs, primarily in oncology. As of 2022, Incyte had a market capitalization of $67.43 million and a return on equity of -20.77%. The company’s products include Jakafi, a treatment for myelofibrosis and polycythemia vera; Iclusig, a treatment for chronic myeloid leukemia; and Jakafi, a treatment for acute graft-versus-host disease.
– DICE Therapeutics Inc ($NASDAQ:DICE)
DICE Therapeutics is a clinical-stage biopharmaceutical company that focuses on the development and commercialization of novel therapeutics for the treatment of cancer. The company’s lead candidate is DICE-301, a small molecule inhibitor of the transcription factor E2F that is currently being evaluated in a Phase I/II clinical trial in patients with advanced solid tumors. DICE-301 has shown preliminary efficacy in patients with advanced solid tumors, including non-small cell lung cancer, pancreatic cancer, and ovarian cancer. The company is also developing DICE-201, a small molecule inhibitor of the transcription factor c-Myc, which is currently in preclinical development.
– Aura Biosciences Inc ($NASDAQ:AURA)
Aura Biosciences Inc is a clinical-stage biopharmaceutical company developing a new class of drugs called tumor-targeted photodynamic therapies (PDTs) for the treatment of solid tumors. PDTs are a type of cancer treatment that uses light to kill cancer cells. The company’s lead product candidate, AU-011, is a PDT that is being evaluated in a Phase 1/2 clinical trial in patients with advanced solid tumors. Aura Biosciences Inc has a market cap of $365.63M as of 2022 and a Return on Equity of -21.81%. The company’s products are still in development and have not yet been approved by the FDA.
Summary
Investors in CytomX Therapeutics have recently been concerned about the cash depletion of the company. At the time of writing, media sentiment on the company is largely negative. Analysts suggest that investors should carefully consider the company’s financials and the potential risks involved in investing in the company. They recommend assessing cash flow trends, product pipelines and market demand before making any decisions.
Furthermore, investors should review the existing market conditions, potential industry risks and competitive landscape to gauge the long-term potential of their investment. They should also understand the potential capital requirements, ownership structure and financial structure of the company. In general, investors should consider all relevant information before investing in CytomX Therapeutics.
