CytomX Stock Rises 31% in a Month: Here's What You Should Know

Shares of CytomX Therapeutics CTMX were up 30.8% this past month after it announced strategic business updates and outlined key pipeline goals for 2026. The encouraging clinical progress with its pipeline candidates likely raised investor optimism, resulting in the stock's rise during this period.

CytomX's top-line currently comprises collaboration revenues from its ongoing partnership agreements with several companies like Amgen, Astellas, Bristol Myers, Moderna and Regeneron. The company’s clinical-stage pipeline includes varsetatug masetecan (formerly CX-2051) and CX-801.

CTMX’s Encouraging Progress With Varseta-M

Owing to a restructuring plan in January 2025, CytomX announced Varseta-M (EpCAM PROBODY ADC) as its lead program. The candidate is being developed for treating advanced metastatic colorectal cancer (“CRC”) in an ongoing phase I study. Enrollment in the study is currently ongoing, with an update expected later in the first quarter of 2026.

Phase I dose-expansion studies evaluating Varseta-M across (7.2mg/kg, 8.6 mg/kg and 10 mg/kg) doses, given every three weeks is currently ongoing. This is likely to help determine the most suitable dose for a potential registrational study on Varseta-M in advanced CRC.

CytomX plans to align with the FDA later in 2026 to finalize the design of a potential registrational study of Varseta-M as a monotherapy for treating advanced CRC.

Management is also looking to develop Varseta-M in combination studies. A phase I study evaluating Varseta-M in combination with Roche’s RHHBY Avastin (bevacizumab) for treating CRC is expected to begin later in the first quarter of 2026. Data from the study (expected in the first half of 2027) is likely to support the potential late-phase development of Varseta-M in earlier lines of CRC.

One of Roche’s legacy cancer drugs, Avastin, is approved for multiple oncology indications. RHHBY recorded CHF 763 million in Avastin sales in the first nine months of 2025. Sales of this Roche drug have been declining due to biosimilar competition.

In the past six months, shares of CytomX surged 126.4% compared with the industry’s rise of 22.6%.

CTMX’s Other Pipeline Update

CytomX is developing its second pipeline candidate, CX-801 (PROBODY Interferon-alpha 2b), as a monotherapy and in combination with Merck’s MRK blockbuster PD-L1 inhibitor, Keytruda (pembrolizumab), in a phase I dose-escalation study to treat advanced melanoma.

Keytruda, which is approved for multiple types of cancer indications, currently generates more than half of Merck’s pharmaceutical revenues. MRK recorded $23.3 billion in Keytruda sales in the first nine months of 2025.

Initial clinical data evaluating CX-801 in combination with Keytruda for treating advanced melanoma is expected to be announced by the end of 2026.

In the absence of a marketed product, pipeline development remains in key focus for CytomX.

CytomX Therapeutics, Inc. Price

CytomX Therapeutics, Inc. price | CytomX Therapeutics, Inc. Quote

CTMX’s Zacks Rank & a Stock to Consider

CytomX currently carries a Zacks Rank #3 (Hold).

A better-ranked stock in the biotech sector is Alkermes ALKS, sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Over the past 60 days, estimates for Alkermes’ 2026 earnings per share have increased from $1.54 to $1.80. Shares of ALKS have gained 18.6% over the past six months.

Alkermes’ earnings beat estimates in three of the trailing four quarters, while missing the same on the remaining occasion, with the average surprise being 4.58%.

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This article originally published on Zacks Investment Research (zacks.com).

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