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CytomX (CTMX) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Health Care· Aug 6, 2026

Source: earnings call transcript

Executive summary

CytomX Q2 FY26 — Varseta-M Pipeline Broadens with New GI Cancer Cohorts and Combination Studies

CytomX Therapeutics reported Q2 FY26 results highlighting significant expansion of its lead asset, Varseta-M, into new GI cancer indications and combination studies, alongside continued progress for CX-801. The company maintains a strong cash position, extending its runway to H2 2028, bolstered by an expanded Regeneron collaboration, despite a decline in collaboration revenue due to prior deal conclusions. Management is focused on advancing Varseta-M towards a registrational study and exploring its broader therapeutic potential.

Highlights

5

  • Varseta-M development program is broadening rapidly, including new GI cancer expansion cohorts and combination studies.

  • Cash runway projected to at least the second half of 2028, with $330.3 million in cash, cash equivalents, and investments as of June 30, 2026.

  • Expanded collaboration with Regeneron, resulting in an additional $37 million payment for 2 new targets.

  • CX-801 monotherapy generally well tolerated up to the fourth dose level, exceeding commercially available unmasked interferon alpha-2b.

  • Strengthened organization with key additions to the Board and executive team, including Mamata Gokhale, Alejandra Carvajal, and Dr. Charles Fuchs.

Concerns

2

  • Total revenue decreased to $1.4 million in Q2 FY26 from $18.7 million in Q2 FY25, primarily due to the conclusion of BMS and Astellas collaborations.

  • Operating expenses increased to $25.2 million in Q2 FY26 from $19.9 million in Q2 FY25, driven by manufacturing activities for Varseta-M and increased personnel/consulting costs.

Guidance & targets

CategoryTargetConfidence
Varseta-M Phase I data update
Report Phase I data update
high materiality
High
Varseta-M registrational study initiation
Initiate registrational study
high materiality
High
Varseta-M + bevacizumab combination study data
Report initial clinical data
medium materiality
High
Varseta-M + bevacizumab + 5-FU/leucovorin combination study initiation
Initiate Phase I/II trial
medium materiality
High
CX-801 Phase I clinical data
Share initial clinical data
medium materiality
High
Cash runway
At least second half of 2028
high materiality
High

Segment performance

SegmentRevenueYoYQoQMargin
Company Total
Total revenue decreased primarily due to the conclusion of the BMS collaboration in 2025 and for the Astellas collaboration in the first half of 2026.
$1.4 milliondecreased from $18.7 million——

Deals & partnerships

Regeneron Expansion of collaboration focused on next-generation masked bispecific immunotherapies $37 million

This expansion validates CytomX's expertise in conditional activation, masking technologies, and protease biology.

Risks & headwinds

Revenue decline due to collaboration conclusions Q2 FY26

Total revenue was $1.4 million compared to $18.7 million in the second quarter of 2025.

Mitigation:Focus on progressing Varseta-M towards its first registrational study and accelerated investments to unlock the broader potential in the program.

Increased operating expenses Q2 FY26

Operating expenses for the second quarter were $25.2 million compared to $19.9 million in the second quarter of 2025.

Mitigation:Continue to be disciplined in capital allocation with a focus on progressing Varseta-M towards its first registrational study and accelerated investments to unlock the broader potential in the program.

Varseta-M Grade 3 diarrhea rate Ongoing

10% to 20% Grade 3 diarrhea rate would be acceptable

Mitigation:Utilizing loperamide and budesonide prophylaxis strategy; ongoing learning about etiology and management of the adverse event.

What to watch in Q3 FY26

Varseta-M Phase I data update

end of 2026
Current Enrollment in dose optimization completed in April
Target Report Phase I data update

Why it matters

This update will inform monotherapy dose selection and the go-forward development strategy for the first registrational study.

We remain on track to report by the end of 2026, a Phase I data update for Varseta-M across the entire ongoing Phase I trial with a key focus on the data that underpins monotherapy dose selection and the go-forward development strategy for our first registrational study.

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Q&A highlights

How is dose selection approached for GI cancer expansion cohorts and the bevacizumab combination study, and is GI prophylaxis used in the combination study?

Dose selection for GI expansion is informed by prior CRC work. For the bev combination, Q2-week and Q4-week schedules are explored, starting at meaningful doses. The same loperamide/budesonide prophylaxis strategy is being used in the bev combo study.

“yes, we are indeed utilizing the same loperamide, budesonide prophylaxis strategy in the bev combo study.”

asked by Michael Schmidt · answered by Sean McCarthy

2 min read 6 chapters

Detailed narrative

Varseta-M Monotherapy Development

CytomX is aggressively developing Varseta-M, an EpCAM-targeting antibody drug conjugate, in metastatic colorectal cancer (CRC). The Phase I monotherapy study has enrolled 113 patients, with dose optimization completed in April 2026 across 8.6 and 10 mg/kg doses. The company plans to report a comprehensive Phase I data update by year-end 2026, focusing on dose selection and the strategy for a registrational study aimed for initiation in H1 2027, targeting third or fourth-line CRC.

Varseta-M Combination Studies

The company is advancing Varseta-M in combinations to expand into earlier-line CRC therapy. An ongoing Phase I cohort explores combination with bevacizumab (Q2-week and Q4-week schedules), with initial data expected in H1 2027. A new Phase I/II trial combining Varseta-M with bevacizumab, 5-fluorouracil, and leucovorin in second-line CRC patients is planned for Q4 2026, aiming to replace irinotecan.

Varseta-M Pan-Tumor Expansion

CytomX announced the initiation of Phase I expansion cohorts for Varseta-M in additional EpCAM-positive gastrointestinal cancers, including gastric, gastroesophageal junction, pancreatic ductal adenocarcinoma, and biliary tract cancer. The plan is to enroll approximately 20 patients per tumor type, with patient selection for EpCAM expression in pancreatic and biliary tract cancers, while gastric/GEJ will be unselected due to high EpCAM expression.

CX-801 Progress

CX-801, a masked interferon alpha-2b program for checkpoint refractory melanoma, is progressing in its Phase I study. Monotherapy has reached the fourth dose level and is generally well tolerated, exceeding commercially available unmasked interferon alpha-2b. The combination study with KEYTRUDA has cleared the third dose level, with initial clinical data expected in H1 2027.

Regeneron Collaboration Expansion

During Q2, CytomX expanded its collaboration with Regeneron for next-generation masked bispecific immunotherapies. This expansion resulted in a $37 million payment in July for the selection of two additional targets, reflecting the validation of CytomX's conditional activation and masking technologies and strong scientific momentum.

Financial Position and Capital Allocation

The company ended Q2 FY26 with $330.3 million in cash, cash equivalents, and investments, projecting a cash runway to at least H2 2028. Total revenue decreased to $1.4 million from $18.7 million YoY due to collaboration conclusions, while operating expenses increased to $25.2 million, primarily driven by Varseta-M manufacturing and personnel costs. The company remains disciplined in capital allocation, prioritizing Varseta-M's development.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.