C4 Therapeutics (CCCC) Gains 310% in 3 Months: Here's Why
Shares of C4 Therapeutics, Inc. CCCC or C4T have skyrocketed 310.1% in the past three months compared with the industry’s increase of 9.8%.
The clinical-stage biopharmaceutical company is engaged in developing a new generation of medicines that harness targeted protein degradation. C4T utilizes its proprietary TORPEDO platform to design, analyze and predict degrader performance.
In December 2023, CCCC entered into an exclusive licensing and collaboration agreement with pharma giant Merck MRK to discover and develop degrader-antibody conjugates (“DACs”) with an initial focus on one oncology target.
The partnership is looking to leverage C4T’s leading protein degradation technology with Merck’s expertise in biological chemistry. The deal provided a big boost to C4T’s shares and could be a catalyst for the stock to increase during the given time period.
C4T, with the aid of its proprietary TORPEDO platform, will develop a degrader, while Merck will provide antibody conjugation to create DACs in the discovery phase. An emerging modality, DAC is designed to selectively target and neutralize disease-causing proteins in cancer cells.
The deal is likely to trigger an upfront payment of $10 million for C4T from MRK, along with milestone payments of approximately $600 million and tiered royalties on net sales if a product is commercialized upon potential approval.
Importantly, C4T would be eligible to receive up to almost $2.5 billion in potential payments if Merck exercises its options to extend the collaboration deal.
The proceeds of the deal with Merck are likely to provide C4T with the required funds to support its pipeline development and continue its research activities. Such deals are likely to drive the stock in 2024 and beyond.
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Also, in December 2023, C4T announced positive data from the phase I dose escalation portion of a phase I/II study evaluating its pipeline candidate, CFT7455, for the treatment of multiple myeloma (MM) and non-Hodgkin’s lymphoma (NHL).
The company is evaluating CFT7455 both as monotherapy and in combination with dexamethasone for treating relapsed/refractory (R/R) MM. The candidate is also being studied as a monotherapy for treating NHL.
C4T’s top line currently comprises collaboration revenues. Hence, in the absence of a marketed product, the successful development of its pipeline candidates remains the key focus for the company. However, any regulatory or developmental setback for its candidates is likely to hurt the stock in the days ahead.
C4 Therapeutics, Inc. Price
C4 Therapeutics, Inc. price | C4 Therapeutics, Inc. Quote
Zacks Rank & Stocks to Consider
C4T currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the healthcare sector are Dynavax Technologies Corporation DVAX and Puma Biotechnology, Inc. PBYI, both sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 60 days, estimates for Dynavax Technologies’ 2024 earnings per share have improved from 8 cents to 18 cents. In the past year, shares of DVAX have surged 36%.
Earnings of Dynavax Technologies beat estimates in two of the last four quarters while missing the same on the remaining two occasions. DVAX delivered a four-quarter earnings surprise of 293.21%, on average.
In the past 60 days, estimates for Puma Biotechnology’s 2024 earnings per share have improved from 56 cents to 69 cents. In the past year, shares of PBYI have gained 7.7%.
Earnings of Puma Biotechnology beat estimates in three of the last four quarters while missing the same on the remaining one occasion. PBYI delivered a four-quarter average earnings surprise of 76.55%.
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