CytomX Therapeutics Inc (NASDAQ: CTMX)
CytomX Therapeutics is having an incredibly strong time in the pre-market trading hours this morning. Throughout the morning, the stock has been soaring on news of an extended collaboration agreement. Below, we'll talk about what we're seeing from CTMX, why, and what we'll be watching for ahead.
What We're Seeing From CTMX
As mentioned above, the pre-market hours are being overwhelmingly good to CytomX Therapeutics. In fact, since news broke about an hour ago about an extended collaboration agreement, the stock has been skyrocketing. Currently (8:41), CTMX is trading at $20.35 per share after a gain of $5.17 per share or 34.06% thus far today.
Why The Stock Is Climbing
As is almost always the case, our partners at Trade Ideas were the first to inform us of the gains on CTMX. As soon as we received the alert, the CNA Finance team went to work to see why the stock was making a run for the top. It didn't take long to dig up the story. Ultimatley, the gains are the result of an extended collaboration agreement that was announced about an hour ago.
In a press release, Bristol-Myers Squibb (BMY) announced that it has extended its collaboration agreement with CytomX Therapeutics. The agreement surrounds the development of investigational Probody therapeutics as a treatmnt for cancer. The new collaboration will include up to 8 additional targets using CytomX's proprietary Probody platform. As a result, CTMX will receive $200 million up front and will be eligible for up to $3.6 billion in milestone payments. In a statement, Carl Decicco, Ph.D., Head of Discovery at Bristol-Myers Squibb, had the following to offer...
“CytomX's Probody platform has enhanced our discovery research as we seek to direct the therapeutic effects of immunotherapy in a more targeted approach against tumors... We look forward to working more extensively with CytomX on this innovative and potentially disruptive approach in oncology as well as other disease areas.”
What We'll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on both CTMX and BMY. In particular, we'll be following the collaboration closely as we are interested in the creation of new therapies and therapy targeting in the oncology space. Nonetheless, we'll continue to follow the story and bring you the news as it breaks!
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