CNTX inventory is down over 50% after saying it raised over $31 million in funding from promoting shares. However is the selloff justified?
Most cancers is the third main reason behind loss of life in ladies. What’s extra, yearly, round 255,000 ladies are identified with breast most cancers. With this in thoughts, Context Therapeutics (Nasdaq: CNTX) is on a mission to vary that.
The corporate continues to be in its medical levels, that means its drug candidates are nonetheless being developed. But, its main candidate, ONA-XR, is progressing by way of medical trials. The truth is, the primary dose was administered in Could, earlier than the corporate turned publicly traded in October.
Since going public, CNTX inventory rallied from its IPO worth of $5 to over $10 per share. Regardless of the short-lived rally, shares are buying and selling again at its opening worth of $5.
Will the Philly-based startup overcome the percentages with an enormous mission in thoughts? Let’s discover out.
Context Therapeutics Pipeline
When taking a look at new biopharmaceutical shares like CNTX inventory, the very first thing to contemplate is the agency’s pipeline. This gives you a greater thought of how far the corporate is progressing with its candidate. In spite of everything, to generate gross sales, they may want an accredited drug to promote.
That mentioned, the corporate is working to enhance the lives of ladies residing with most cancers resembling ovarian, uterine and breast most cancers.
With this in thoughts, Context has two programs pushing by way of trials.
Its lead, ONA-XR, is trying to assist deal with hormone-driven cancers. Particularly, the drug works to forestall the hormone progesterone from being constantly absorbed. In different phrases, blocking the hormone from binding can restrict its manufacturing.
Thus far, present medicine can solely block estrogen, one other hormone. But, most cancers cells can use progesterone to worsen the illness. So, when you can management each, you’ll have a greater end result. No less than, that’s what Context is working to show.
Claudin 6, then again, is one other therapy geared in the direction of regulating proteins related to most cancers. Though the preliminary analysis seems promising, this system continues to be younger.
As you possibly can see, Context Therapeutics continues to be in its early levels. However the packages are specializing in hormone-driven cancers, the place a protected therapy is way wanted. Till now, sufferers don’t have many decisions. It’s both chemo or an estrogen blocker. Neither of that are absolutely splendid.
CNTX Inventory Financials & Operations
Though Context isn’t producing gross sales proper now from its medicine, its newest earnings report updates us on how the corporate is progressing. On account of the corporate going public, Context raised $31.25 million in funding. Which, the corporate says, might be used to fund them into 2024.
CEO Martin Lehr had excessive reward for the corporate, saying, “it is a pivotal time for Context.” Earlier than including, “the medical analysis of our lead product candidate (ONA-XR) continues to progress, with three Part two medical trials and one Part 1B/2.”
As well as, the corporate is getting into right into a analysis partnership with Integral Molecular for its Claudin 6 program. Below the settlement, the companions will develop antibodies to destroy most cancers cells.
The corporate additionally appointed two new executives to strengthen the corporate’s prospects going ahead. In April, Context welcomed Alex Levitt as Chief Authorized Officer. And in November, it elected Jennifer Minai-Azary Chief Monetary Officer. The truth is, Jennifer was a crucial issue within the firm’s IPO.
At quarter-end, CNTX inventory had $419,152 in money and equivalents. With this in thoughts, the corporate spent 739,598 on R&D, whereas spending $828,464 on normal bills.
All in all, the corporate posted a web lack of $1.4 million in Q3.
Different CNTX Inventory Developments
Context Therapeutics is making nice strides in getting its product to the market. Bringing the corporate public was a crucial milestone that can assist fund the enterprise for an additional few years. That mentioned, listed here are just a few of the largest occasions surrounding CNTX inventory.
- Licensing Settlement – Context is partnering with Shanghai-based Tyligand Biosciences. Moreover, Tyligand may have unique rights to promote ONA-XR in China, Hong Kong and Macau.
- First Affected person Dosed – In October, the primary affected person obtained ONA-XR in Part 2 to review its results.
- Enrollment Full – Part 2 research of ONA-XR for early-stage breast most cancers.
General, the corporate is shifting rapidly. Context is doing what it must proper now to get its drug accredited. Not solely that, nevertheless it’s additionally making key partnerships to assist promote it when the time comes.
CNTX Inventory Outlook
Being that Context’s merchandise are usually not but accredited, you might be investing within the thought it can sooner or later be in the marketplace.
With this in thoughts, the corporate is making swift progress, passing it by way of medical trials. Furthermore, the product seems to deal with an enormous market, together with breast most cancers and uterine, two of ladies’s most steadily identified cancers.
CNTX inventory is sitting flat at its IPO worth of $5 per share. If Context can proceed shifting at this fee, these worth ranges might be a discount.
However, if the corporate runs into any hurdles, it might stress the inventory additional downwards. Usually, when promising biotech corporations have a setback, the worth will fall with traders in search of different alternatives.
At any fee, CNTX inventory might be an attention-grabbing one to look at as the corporate advances its lead drug. Thus far, the inventory has been fairly quiet. However, because the drug will get nearer to the market, search for extra eyes on this one.
About Pete Johnson
Pete Johnson is an skilled monetary author and content material creator who makes a speciality of fairness analysis and derivatives. He has over ten years of private investing expertise. Digging by way of 10-Ok varieties and discovering hidden gems is his favourite pastime. When Pete isn’t researching shares or writing, yow will discover him having fun with the outside or working up a sweat exercising.