Breast cancer has been a killer for many years. Many companies have tried to improve upon the available treatments and while things have gotten better, there is still no cure. But there is one company that appears to be getting closer to finding the illusive treatment for breast cancer. That company is Celldex Therapeutics (CLDX).
Celldex Therapeutics is a biopharmaceutical company focused on the development, manufacture, and commercialization of novel therapeutics for human healthcare. The company has two main products. The first is CDX-110, which is currently in Phase III clinical trials to target the tumor-specific molecule, epidermal growth factor receptor variant III. CDX-011 is the company's other drug. CDX-011 is an antibody drug conjugate that is used to treat metastatic breast cancer.
The stock has had a trading range between $.52 and $8.53 over the past 52 weeks. The stock currently trades at $8.30 so the fact that the stock trades very close to 52 week highs should give investors and traders hope.
The company currently has a float of approximately 62 million shares which based on the last closing price of Celldex, would give it a market capitalization of just under $515 million. The company has a price to book ratio of 5.47, a price to sales ratio of 50.8, and a book value of $1.50 per share. During the company's latest income statement filing, the company reported total revenue of just under $10 million dollars. The company also has $1.28 per share in available cash; a great position for a biotechnology company as they are typically looking to raise more cash as opposed to sitting on it. This helps remove some of the dilution concerns that typically face most developmental biotech firms.
Late in 2012, Celldex announced its Phase II trial results for CDX-011. The results were extremely positive and indicated delayed tumor growth and prolonged survival in patients with an advanced and aggressive form of breast cancer compared to single-agent chemotherapy. The median overall survival very nearly doubled in the CDX-011 treated patients versus 5.5 months for patients in the control arm.
CDX-011 is a drug antibody drug conjugate. The antibody portion connects with cancer cells containing a protein called GPNMB. GPNMB has been shown to correlate with some of the worst forms of breast cancer. Once the connection takes place, CDX-011 releases a toxic chemotherapy payload. The drug conjugate was licensed from Seattle Genetics (SGEN) and is the same one used in the newly approved lymphoma drug Adcetris.
Phase II was created to test the theory that CDX-011 would work most successfully in patients whose cancer form included the protein GPNMB. Of the 120 patients enrolled in the study, all contained GPNMB in at least some cells. Celldex is currently meeting with the Food and Drug Administration to determine the next course of action.
With the company in discussions with the FDA, anything can happen this year. Investors should consider getting long now as news could come at any point such as FDA announcements, next step announcements such as a Phase III Trial, and potential partnerships with larger companies.