Health care stocks still were flat Wednesday morning, with the NYSE Health Care Index unchanged following a 0.1% rise during Tuesday’s regular session while shares of health care companies in the S&P 500 also were steady after little change during Tuesday trading.
In company news, CytomX Therapeutics (CTMX) was poised to open Wednesday at an all-time record high price, streaking to a more than a 34% gain and $25.48 a share in the day’s pre-market trading after the cancer immunotherapy company Tuesday night announced a strategic collaboration with Amgen (AMGN) to co-develop potential genetic oncology medications.
Amgen will acquire a $20 million stake in CytomX–acquiring around 1.05 million of the company’s shares at Tuesday’s closing price of $19.00 each, equal to a 2.8% stake based on CytomX’s 36.87 million shares currently outstanding–as well as making a $40 million upfront payment to the smaller biotech.
Overall, CytomX is eligible for up to $455 million in development, regulatory and commercial milestone payments as the companies work to develop a CytomX Probody T-cell to interact with the Epidermal Growth Factor Receptor, a highly validated oncology target for several varieties of human cancers. Amgen also will receive exclusive global rights to three other still-undetermined targets.
In other sector news,
(+) MYL, (+13.9%) FDA approves the company’s abbreviated new drug applications for its 20-mg. and 40-mg. glatiramer acetate injections, a generic verson of Teva’s (TEVA) Copaxone injection for patients with relapsing forms of mltiple sclerosis.
(-) RIGL, (-7.4%) Files preliminary prospectus for a $40 mln public offering of its common stock, with plans to also issue 30-day options to underwriters to buy up to $6 mln more shares to cover possible overallotments. Net proceeds will fund future research and development.