CytomX Therapeutics Inc. (NASDAQ:CTMX) shares are down on Wednesday following a capital raise of $250 million.

On Tuesday, CytomX Therapeutics announced a public offering of 45.9 million shares at $5.30 per share, pre-funded warrants to purchase 1.179 million shares.

The company will use the proceeds for the continued development of Varseta-M and other pipeline programs.

CytomX Colorectal Data Shows 32% Response

The company’s stock rallied following recent data on colorectal cancer treatment.

The latest data revealed positive response rates in colorectal cancer patients, with expansion cohorts showing a 32% response rate at a 10 mg/kg dose and a 20% rate at an 8.6 mg/kg dose.

The disease control rate was reported at 88% across the expansion doses, indicating strong potential for CytomX’s treatment options.

Additionally, the safety profile of Varseta-M appears manageable, with a Grade 3 diarrhea rate of 10% reported in ongoing dose optimization cohorts.

The company is prioritizing further evaluations at the 8.6 mg/kg and 10 mg/kg doses for a registrational study, which could significantly impact its market position.

Analyst Consensus & Recent Actions: The stock carries a Buy Rating with an average price target of $7.91. Recent analyst moves include:

  • Guggenheim: Buy (Raises Target to $15) (Mar. 18).
  • Wedbush: Outperform (Raises Target to $11.00) (Mar. 17)
  • HC Wainwright & Co.: Buy (Raises Target to $17.00) (Mar. 16)
  • JP Morgan: Upgraded to Overweight (Raises Target to $12.00) (Mar. 16)

CTMX Price Action: CytomX Therapeutics shares were down 15.32% at $4.61 at the time of publication on Wednesday, according to Benzinga Pro data.

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