C4 Therapeutics, Inc.
For the period ended Mar 31, 2025. Filed May 7, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2025 · Filed May 7, 2025
CCCC$3.10+5.1%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-09-30; filed 2024-10-31.
0001628280-24-044411
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-03-31; filed 2025-05-07.
0001628280-25-022866
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 112 previous paragraphs and 100 current paragraphs.
64 unchanged; 26 reworded; 9 added; 22 removed; 0 previous and 1 current paragraphs rearranged.
Tables are not compared: 5 previous and 4 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (9)
Current report
CFT1946 is an orally bioavailable BiDAC degrader designed to be potent and selective against BRAF V600 mutant proteins to treat melanoma, colorectal cancer, or CRC, and other malignancies that harbor V600 mutations. In preclinical studies, CFT1946 has demonstrated the ability to cross the blood-brain barrier with Kp,uu, values ranging from 0.34 to 0.88, an important feature as a portion of patients with BRAF V600 mutant solid tumors develop brain metastases. In September 2024, we presented initial monotherapy data from the ongoing Phase 1/2 trial, which demonstrated that CFT1946 was well tolerated with initial signs of anti-tumor activity across all dose levels. While we will complete the ongoing Phase 1 trial, we have made the decision not to advance CFT1946 beyond the current Phase 1 trial.
Current report
CFT8919 is an orally bioavailable, allosteric, mutant-selective BiDAC degrader of epidermal growth factor receptor, or EGFR, with an L858R mutation in non-small lung cancer, or NSCLC. In May 2023, we entered into a license and collaboration agreement with Betta Pharma to collaborate on the development and commercialization of CFT8919 in mainland China, Hong Kong SAR, Macau SAR and Taiwan, with us retaining rights to develop and commercialize CFT8919 in the rest of the world. In November 2024, Betta Pharma initiated a Phase 1 clinical trial in NSCLC patients with the EGFR L858R mutation in Greater China. The Phase 1 clinical trial is ongoing, and data generated from this trial will inform our ex-China clinical development strategy.
Current report
•a $1.1 million increase in personnel costs; and
Current report
•a $0.8 million increase in clinical expenses as a result of our ongoing Phase 1/2 clinical trial of cemsidomide and our Phase 1 trial of CFT1946.
Current report
Other income, net
Current report
•net loss of $26.3 million;
Current report
•$4.9 million increase in accounts receivable, primarily a result of our milestones earned under our Roche collaboration; and
Current report
Net cash used in financing activities for the three months ended March 31, 2025 was driven primarily by payments for repurchase of common stock for tax withholding.
Current report
•initiate later-stage development and potential registrational trials for our product candidates;
Removed paragraphs (22)
Previous report
Our other most advanced product candidate, CFT1946, is an orally bioavailable BiDAC degrader designed to be potent and selective against BRAF V600X mutant targets to treat melanoma, non-small cell lung cancer, or NSCLC, colorectal cancer, or CRC, and other malignancies that harbor this mutation. In January 2023, we initiated a first-in-human Phase 1/2 clinical trial of CFT1946 for the treatment of BRAF V600X mutant solid tumors including NSCLC, colorectal cancer and melanoma. In September 2024, we presented initial monotherapy CFT1946 data demonstrating proof of mechanism and early evidence of proof of concept in BRAF V600 mutant solid tumors at the European Society for Medical Oncology (ESMO) Congress 2024. We continue to progress the ongoing Phase 1/2 clinical trial of CFT1946.
Previous report
Additionally, we are developing CFT8919, an orally bioavailable, allosteric, mutant-selective BiDAC degrader of epidermal growth factor receptor, or EGFR, with an L858R mutation in NSCLC. In May 2023, we entered into an exclusive licensing agreement for the development and commercialization of CFT8919 in Greater China, including Hong Kong SAR, Macau SAR and Taiwan, with Betta Pharmaceuticals, Co., Ltd, or Betta Pharma. Additionally, the FDA cleared the investigational new drug, or IND, application for CFT8919 and Betta Pharma received clinical trial application clearance for CFT8919 from China's National Medical Product Administration. We expect to initiate clinical trial activities outside Greater China following the completion of Betta Pharma's Phase 1 dose escalation trial in Greater China.
Previous report
•interest expense and amortization of our long-term debt, which is discussed in greater detail in Note 9, Long-term debt – related party, to the unaudited condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q; and
Previous report
The $12.9 million increase in revenue in the nine months ended in September 30, 2024, as compared to the nine months ended September 30, 2023 is primarily driven by the $10.6 million increase from start of collaboration activities in 2024 for the MKDG, Merck, and Betta Pharma Agreements, and two milestones earned under the Biogen Agreement. This was offset by a $5.9 million decrease under the Roche Agreement as a result of our September 2023 completion of research activities for a nominated target.
Previous report
•a $2.6 million increase in clinical expenses due to continued progress on our cemsidomide and CFT1946 programs.
Previous report
These amounts were partially offset by a $2.9 million decrease in personnel costs as a result of our restructuring activities in January 2024.
Previous report
The $9.2 million decrease in research and development expense in the nine months ended September 30, 2024 as compared to the nine months ended September 30, 2023 is primarily driven by:
Previous report
•a $7.1 million decrease in personnel costs as a result of our restructuring activities;
Previous report
•a $1.2 million decrease in preclinical expenses as a result of prioritization of our business towards programs that are in clinical stages.
Previous report
These amounts were partially offset by a $2.4 million increase in clinical expenses as a result of continued progress on our cemsidomide and CFT1946 programs.
Previous report
General and administrative expense in the nine months ended September 30, 2024 as compared to the nine months ended September 30, 2023 remained relatively flat as a result of an increase of $0.8 million for personnel expenses offset by a $0.7 million decrease in professional fees and other expenses.
Previous report
Company's workforce with the needs of the business and reduce operating costs, which resulted in a reduction in the Company's workforce of 30%.
Previous report
Other income (expense), net
Previous report
The following table summarizes our other income (expense), net for the three and nine months ended September 30, 2024 and 2023 (in thousands):
Previous report
The $6.3 million increase in other income (expense), net in the nine months ended September 30, 2024 as compared to the nine months ended September 30, 2023 is primarily driven by a $4.3 million increase in interest and other income resulting from higher interest earned on our investments during the three months ended September 30, 2024 and a $1.4 million decrease in interest expense from long-term debt.
Previous report
•net loss of $70.7 million;
Previous report
•$4.3 million change in prepaid expenses and other current and long-term assets; and
Previous report
•$12.1 million change in deferred revenue due to the upfront payment related to the MKDG Agreement and the allocated transaction price that remains unsatisfied related to the Betta Pharma License Agreement, partially offset by the recognition of revenue under our collaboration agreements;
Previous report
•$1.5 million change in accounts receivable, primarily a result of the Merck upfront payment; and
Previous report
Net cash provided by financing activities for the nine months ended September 30, 2024 was driven primarily by:
Previous report
•$20.0 million in net proceeds for the execution of the Betta Stock Purchase Agreement; and
Previous report
•$24.4 million in net proceeds from our at-the-market equity program.
Reworded paragraphs (26)
Previous wording
We are a clinical-stage biopharmaceutical company dedicated to delivering on the promise of targeted protein degradation, or TPD, science to create a new generation of small-molecule medicines that transforms patients’ lives. By leveraging our proprietary TORPEDO platform, we have the capability to efficiently design and optimize small molecule protein degraders that are highly active against their desired targets by harnessing the body’s natural process for destroying unwanted proteins. We believe our novel oral product candidates have the potential to overcome drug resistance often seen with inhibitors, target currently “undruggable” targets and improve patient outcomes. To date, we have successfully designed and advanced several protein degraders into the clinic across a range of target classes and, based on data from our clinical trials, our product candidates have demonstrated robust target degradation.
Current wording
We are a clinical-stage biopharmaceutical company dedicated to delivering on the promise of targeted protein degradation, or TPD, science to create a new generation of small-molecule medicines that transform patients’ lives. By leveraging our proprietary TORPEDO platform, we have the capability to efficiently design and optimize small molecule protein degraders that are highly active against their desired targets by harnessing the body’s natural process for destroying unwanted proteins.
Previous wording
One of our most advanced product candidates, cemsidomide (CFT7455), is an orally bioavailable MonoDAC degrader of protein targets called IKZF1 and IKZF3, currently in clinical development for multiple myeloma, or MM, and non-Hodgkin lymphomas, or NHLs. The United States Food and Drug Administration, or FDA, has granted orphan drug designation to cemsidomide (CFT7455) for the treatment of MM. In December 2023, we presented positive clinical data from the dose escalation portion of the cemsidomide (CFT7455) Phase 1/2 trial as a monotherapy and in combination with dexamethasone in MM. We continue to progress the ongoing Phase 1/2 clinical trial of cemsidomide in MM and NHL.
Current wording
Our most advanced product candidate, cemsidomide, is an orally bioavailable MonoDAC degrader of protein targets called IKZF1 and IKZF3. Cemsidomide is currently in clinical development for multiple myeloma, or MM, and non-Hodgkin lymphoma, or NHL. The United States Food and Drug Administration, or FDA, has granted orphan drug designation to cemsidomide for the treatment of MM. In December 2024, we shared data from the ongoing Phase 1/2 clinical trial of cemsidomide in MM and NHL as of an October 11, 2024 cutoff date. The dose escalation portion of the trial evaluating cemsidomide in combination with dexamethasone in MM demonstrated a well-tolerated safety profile and compelling anti-myeloma activity, as measured by overall response rate and clinical benefit rate. Additionally, we previously shared MM monotherapy data that showed cemsidomide activates immune cells at clinically relevant doses. In December 2024, we also shared data evaluating cemsidomide as a monotherapy in NHL that demonstrated a well-tolerated profile and compelling anti-lymphoma activity in NHL and in peripheral t-cell lymphoma, or PTCL, as measured by overall response rate and complete metabolic response rate.
Previous wording
Beyond these initial product candidates, we are further diversifying our pipeline by developing new degraders against both clinically validated and currently undruggable targets for our own proprietary programs, as well as for programs we are developing in collaboration with MKDG, Merck, and Roche.
Current wording
Beyond these product candidates, we are further diversifying our pipeline by developing new degraders in therapeutic areas in and beyond oncology for our own proprietary pipeline and in collaboration with MKDG, Merck and Roche.
Previous wording
For a description of our collaboration agreements with Roche, Biogen, Calico, Betta Pharma, Merck and MKDG, please see Note 8, Collaboration and license agreements, to the unaudited condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q.
Current wording
For a description of our collaboration agreements with Roche, Biogen, Betta Pharma, Merck and MKDG, please see Note 8, Collaboration and license agreements, to the unaudited condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q.
Previous wording
Comparison of the three and nine months ended September 30, 2024 and 2023
Current wording
Comparison of the three months ended March 31, 2025 and 2024
Previous wording
Revenue from our collaboration and license agreements consisted of the following for the three and nine months ended September 30, 2024 and 2023 (in thousands):
Current wording
Revenue from our collaboration and license agreements consisted of the following for the three months ended March 31, 2025 and 2024 (in thousands):
Previous wording
The $4.3 million increase in revenue in the three months ended September 30, 2024, as compared to the three months ended September 30, 2023 is primarily driven by the $8.0 million milestone earned under the Biogen Agreement for the accepted delivery of a development candidate in an undisclosed indication and a total of $6.9 million of revenue recognized related to the MKDG, Merck and Betta Pharma collaborations that had activities commence in 2024. This was offset by a $7.8 million decrease in revenue related to the Roche collaboration as a result of our September 2023 completion of research activities for a nominated target.
Current wording
The $4.2 million increase in revenue in the three months ended March 31, 2025, as compared to the three months ended March 31, 2024 is primarily driven by the progression of two targets under the Roche Agreement to the lead series identification achievement phase and a $3.1 million increase in revenue under the MKDG Agreement which commenced in March 2024. This was offset by a decrease in revenue related to the Biogen collaboration as a result of the completion of all research activities in the first quarter of 2024.
Previous wording
The following table summarizes our research and development expense for the three and nine months ended September 30, 2024 and 2023 (in thousands):
Current wording
The following table summarizes our research and development expense for the three months ended March 31, 2025 and 2024 (in thousands):
Previous wording
The $3.5 million increase in research and development expense in the three months ended September 30, 2024 as compared to the three months ended September 30, 2023 is primarily driven by:
Current wording
The $4.5 million increase in research and development expense in the three months ended March 31, 2025 as compared to the three months ended March 31, 2024 is primarily driven by:
Previous wording
•a $4.3 million increase in preclinical expenses as a result of the progress made on our collaboration programs; and
Current wording
•a $2.7 million increase in preclinical expenses as a result of the progress made on our collaboration programs;
Previous wording
•a $1.4 million decrease in professional fees; and
Current wording
These amounts were partially offset by a $0.4 million decrease in professional fees.
Previous wording
The following table summarizes our general and administrative expense for the three and nine months ended September 30, 2024 and 2023 (in thousands):
Current wording
The following table summarizes our general and administrative expense for the three months ended March 31, 2025 and 2024 (in thousands):
Previous wording
The $1.2 million increase in general and administrative expense in the three months ended September 30, 2024 as compared to the three months ended September 30, 2023 is primarily driven by a $0.9 million increase in personnel expenses related to our hiring of key personnel.
Current wording
The $1.0 million decrease in general and administrative expense in the three months ended March 31, 2025 as compared to the three months ended March 31, 2024 is primarily driven by a $0.8 million decrease in personnel expenses related to our restructuring activities that occurred in January 2024.
Previous wording
The $2.4 million increase of restructuring expense in the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023 is driven by the restructuring plan implemented in January 2024 to better align the
Current wording
The $2.4 million decrease of restructuring expense in the three months ended March 31, 2025 compared to the three months ended March 31, 2024 is driven by the restructuring activities that occurred and were completed in 2024.
Previous wording
The $1.8 million increase in other income (expense), net in the three months ended September 30, 2024 as compared to the three months ended September 30, 2023 is primarily driven by a $1.0 million increase in interest and other income resulting from higher interest earned on our investments during the three months ended September 30, 2024 and a $0.6 million decrease in loss on extinguishment of long-term debt.
Current wording
The $1.0 million decrease in other income, net in the three months ended March 31, 2025 as compared to the three months ended March 31, 2024 is primarily driven by a $1.0 million decrease in interest and other income resulting from reduced invested balances as cash was used to fund operations, as well as lower interest rates for the three months ended March 31, 2025.
Previous wording
Since inception, we have incurred significant operating losses. We expect to incur significant expenses and operating losses for the foreseeable future as we advance the preclinical programs and our product candidates through clinical development. We do not currently have any approved products and have never generated any revenue from product sales. To date, we have financed our operations primarily through the sale of preferred stock, public offerings of our common stock, private placements of our common stock, and through payments from collaboration partners. As of September 30, 2024, we had cash, cash equivalents and marketable securities of approximately $284.4 million.
Current wording
Since inception, we have incurred significant operating losses. We expect to incur significant expenses and operating losses for the foreseeable future as we advance the preclinical programs and our product candidates through clinical development. We do not currently have any approved products and have never generated any revenue from product sales. To date, we have financed our operations primarily through the sale of preferred stock, public offerings of our common stock, private placements of our common stock, and through payments from collaboration partners. As of March 31, 2025, we had cash, cash equivalents and marketable securities of approximately $234.7 million.
Previous wording
Net cash used in operating activities for the nine months ended September 30, 2024 was driven primarily by the following uses of cash:
Current wording
Net cash used in operating activities for the three months ended March 31, 2025 was driven primarily by the following uses of cash:
Previous wording
•$5.2 million change in accrued expenses and other current liabilities;
Current wording
•$6.7 million decrease in accrued expenses and other current liabilities;
Previous wording
•$3.9 million change in our operating lease liability.
Current wording
•$1.4 million decrease in our operating lease liability.
Previous wording
•non-cash expenses of $23.2 million, which primarily consisted of stock-based compensation expense of $21.4 million.
Current wording
•non-cash expenses of $6.8 million, which primarily consisted of stock-based compensation expense of $5.5 million.
Previous wording
Net cash used in investing activities for the nine months ended September 30, 2024 was driven primarily by $64.8 million of purchases of marketable securities, net of maturities.
Current wording
Net cash provided by investing activities for the three months ended March 31, 2025 was driven by $29.1 million of sales and maturities of marketable securities, net of purchases.
Previous wording
•continue our ongoing first-in-human Phase 1/2 trials and initiate and conduct planned first-in-human Phase 1/2 trials for our other product candidates;
Current wording
•continue our ongoing first-in-human Phase 1/2 trials;
Previous wording
•the progress, costs, and results of ongoing and planned first-in-human Phase 1/2 trials for our lead product candidates and any future clinical development of those lead product candidates;
Current wording
•the progress, costs, and results of ongoing and planned first-in-human Phase 1/2 trial for our lead product candidate and any future clinical development of our lead product candidate;
Previous wording
As a result of the anticipated expenditures described above, we will need to obtain substantial additional financing to support our continuing operations and pursue our long-term business plan. Until such time, if ever, that we can generate substantial revenue from product sales, we expect to finance our cash needs through a combination of equity offerings, private placements of equity securities, debt offerings, collaborations, strategic alliances, and marketing, distribution or licensing arrangements. Although we may receive potential future milestone and royalty payments under our collaborations with Roche, Calico, Biogen, Betta Pharma, Merck, and MKDG, we do not have any committed external sources of funds as of September 30, 2024.
Current wording
As a result of the anticipated expenditures described above, we will need to obtain substantial additional financing to support our continuing operations and pursue our long-term business plan. Until such time, if ever, that we can generate substantial revenue from product sales, we expect to finance our cash needs through a combination of equity offerings, private placements of equity securities, debt offerings, collaborations, strategic alliances, and marketing, distribution or licensing arrangements. Although we may receive potential future milestone and royalty payments under our collaborations with Roche, Biogen, Betta Pharma, Merck, and MKDG, we do not have any committed external sources of funds as of March 31, 2025.
Previous wording
In November 2021, we filed an automatically effective registration statement on Form S-3, or the Registration Statement, with the SEC that registers the offering, issuance and sale of an unspecified amount of common stock, preferred stock, debt securities, warrants, and/or units of any combination thereof. Simultaneously, we entered into an equity distribution agreement with Cowen and Company, LLC, as sales agent, to provide for the issuance and sale by of up to $200.0 million of common stock from time to time in “at-the-market” offerings under the Registration Statement and related prospectus and any prospectus supplement filed with the Registration Statement, or the ATM Program. In February 2023, we filed a post-effective amendment to convert the automatic shelf registration statement into a conventional shelf registration statement and that registration statement became effective in May 2023. As of September 30, 2024, the Company has sold 15,318,264 shares of our common stock at an average purchase price of $5.54 under the ATM Program, resulting in net proceeds of $82.3 million.
Current wording
In November 2021, we filed an automatically effective registration statement on Form S-3, or the 2021 Registration Statement, with the SEC that registers the offering, issuance and sale of an unspecified amount of common stock, preferred stock, debt securities, warrants and/or units of any combination thereof. Simultaneously, we entered into a sales agreement with Cowen and Company, LLC (now known as TD Securities (USA) LLC), as sales agent, to provide for the issuance and sale by us of up to $200.0 million of common stock from time to time in “at-the-market” offerings under the 2021 Registration Statement and related prospectus filed with the 2021 Registration Statement, or the 2021 ATM Program. As of December 31, 2024, a total of 15,318,264 shares of the our common stock at an average purchase price of $5.54 had been sold through the 2021 ATM Program, resulting in net proceeds of $82.3 million. The 2021 ATM expired in November 2024.
Previous wording
During the nine months ended September 30, 2024, except for the minimum rental commitments disclosed in Note 6, Leases, to the unaudited condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q, there were no significant changes to our contractual obligations and commitments described under "Management’s Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report on Form 10-K for the year ended December 31, 2023.
Current wording
During the three months ended March 31, 2025, except for the minimum rental commitments disclosed in Note 6, Leases, to the unaudited condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q, there were no significant changes to our contractual obligations and commitments described under "Management’s Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report on Form 10-K for the year ended December 31, 2024.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
In October 2024, we filed a registration statement on Form S-3, or the Registration Statement, with the SEC that became effective on November 13, 2024 and registered the offering, issuance and sale of an unspecified amount of common stock, preferred stock, debt securities, warrants and/or units of any combination thereof. Simultaneously, we entered into a sales agreement with TD Securities (USA) LLC, as sales agent, to provide for the issuance and sale by us of up to $200.0 million of common stock from time to time in “at-the-market” offerings under the Registration Statement and related prospectus filed with the Registration Statement, or the 2024 ATM Program. For the three months ended March 31, 2025, no sales were made under the 2024 ATM Program.