On Tuesday, UBS made an adjustment to the price target for C4 Therapeutics (NASDAQ:CCCC), lowering it to $18 from the previous $19, while keeping a Buy rating on the stock. The revision follows C4 Therapeutics' fourth-quarter earnings report for 2023, which revealed an improved cash position compared to the third quarter.
C4 Therapeutics reported a cash balance of approximately $281.7 million as of December 31, 2023. This includes the proceeds from a $57.7 million equity raise following the December release of data for CFT7455, an investigational therapy.
By January 2024, the company's cash was bolstered to around $330 million, thanks in part to equity sales to Betta, a share sale through an at-the-market (ATM) offering, and an upfront payment from a collaboration with Merck & Co.
The company has also implemented cost reduction measures, including a 30% reduction in its workforce. These initiatives are expected to extend C4 Therapeutics' operational funding into 2027. According to UBS, all of C4's clinical programs are progressing as planned.
This includes the combination of '7455 with dexamethasone in treating multiple myeloma (MM), and '7455 as a monotherapy for non-Hodgkin's lymphoma (NHL), both of which are continuing to dose-escalate. Data updates for these programs are anticipated in the second half of 2024.
UBS expressed continued support for C4 Therapeutics, highlighting the potential market opportunity for '7455 in multiple myeloma as currently undervalued. The firm anticipates that forthcoming data in the latter half of 2024 could further support the drug's commercial prospects.
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