Why Is CytomX Therapeutics Stock Shooting Higher Today

CytomX Therapeutics, Inc CTMX inked a pact with BVF Partners L.P. for a private placement resulting in initial gross proceeds of approximately $30 million.

CytomX is selling pre-funded warrants to buy up to 14.42 million shares of common stock, accompanying Tranche 1 warrants to purchase up to 5.77 million shares and accompanying Tranche 2 warrants to purchase up to 5.77 million shares, at a combined price of $2.08 per share, representing a premium of 25% to volume weighted average price over the prior 30 trading days through June 28, 2023.

CytomX also has the potential to receive up to an additional $60 million if all warrants are fully exercised for cash.

Also Read: CytomX Shares Move Higher On Collaborating Pact With This Famed COVID-19 Vaccine Maker

The proceeds raised are expected to extend the company's cash runway into the second half of 2025, based on CytomX's current operating plan. 

"This strategic financing with BVF is based upon an aligned vision that the localization of potent biologic therapies will continue to be a foundational area of oncology research and development and that CytomX's pipeline has the potential to deliver meaningful products to cancer patients over time," said Sean McCarthy, D.Phil., chief executive officer and chairman of CytomX Therapeutics. 

The financing is expected to close on July 3, 2023. 

"Building on business development transactions with Regeneron and Moderna last year, this transaction further strengthens our financial position by extending cash runway into the second half of 2025 and should enable our next-generation pipeline to reach inflection points over this period," McCarthy added.

Price Action: CTMX shares are trading higher by 16.3% to $1.64 on the last check Friday.