C4 Therapeutics Inc (CCCC)

[B RY]

C4 (CCCC) Up 6% on Restructuring Plan to Curb Cash Burn
"Shares of C4 Therapeutics (CCCC - Free Report) , or C4T, were up 5.8% on Jan 10 after management announced strategic plans to prioritize its drug development efforts in 2024.CCCC seeks to prioritize the advancement of two of its pipeline candidates, CFT7455 and CFT1946, both of which are in early-stage development. While CFT7455 is being developed in a phase I/II study for multiple myeloma (MM) and non-Hodgkin’s lymphoma (NHL) indications, CFT1946 is being evaluated in a separate phase I/II study for treating BRAF V600 mutant solid tumors including non-small cell lung cancer (NSCLC), colorectal cancer and melanoma.
The company also intends to advance its partnered programs. It intends to support its partner, China-based Betta Pharmaceuticals, in initiating clinical development on CFT8919 in EGFR L858R mutated NSCLC patients. C4T also plans on expanding its collaborations with Merck (MRK - Free Report) , Biogen and Roche.To achieve these objectives, C4 Therapeutics will reduce its existing workforce by 30%. It reported about $330 million in unaudited cash, cash equivalents and marketable securities as of Jan 5, compared with $246.4 million balance as of Sep 30, 2023.Earlier this month, C4T closed a $25-million equity investment from Betta Pharmaceuticals. It also signed a collaboration deal with Merck last month to develop novel oncology drugs, for which the company also received a $10 million upfront payment. During fourth-quarter 2023, C4 also sold shares to the public as part of an at-the-market (ATM) offering, raising $72 million in net proceeds.C4T expects the additional capital and cost-saving efforts to extend its cash runway into 2027.Alongside the prioritization efforts, management also announced set milestones for the year. These include updated data from the ongoing phase I dose escalation studies on CFT7455 in MM and NHL indications before the year's end. It also expects a data readout in the second half of the year from the early-stage dose escalation study on CFT1946 in BRAF V600 mutated cancers.
In the past year, shares of C4T have lost 9.3% compared with the industry’s 10.9% decline.Zacks Investment Research
Image Source: Zacks Investment ResearchDecember 2023 was an important month for C4T. During this month, the company signed a collaboration deal with Merck to discover and develop degrader-antibody conjugates (DACs), with an initial focus on one oncology target. CCCC is also eligible to receive milestone payments from Merck of around $600 million and tiered royalties on net sales if a product is commercialized upon potential approval.In the same month, C4T also reported encouraging data from the phase I/II study on CFT4755. Data from the study showed that treatment with CFT4755 led to anti-myeloma activity in patients who had undergone numerous lines of prior therapy for multiple myeloma, including BCMA therapies.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."