Why CytomX Therapeutics Stock Is Crashing Today

Shares of CytomX Therapeutics (NASDAQ: CTMX) were crashing 40.1% lower as of 11:44 a.m. ET on Tuesday. The steep decline came after the company announced disappointing preliminary results from a phase 2 study evaluating CX-2029 in treating patients with either advanced squamous non-small cell lung cancer (sqNSCLC) or head and neck squamous cell carcinoma (HNSCC). CX-2029 is an antibody-drug conjugate that's being co-developed by CytomX and AbbVie (NYSE: ABBV). 

CytomX Therapeutics Chairman and CEO Sean McCarthy said in a press release that the company was "pleased" to report the preliminary results. He added that CytomX is "encouraged" by the response rates seen and the low discontinuation rate in the phase 2 study.

So why did the biotech stock plunge with this seemingly positive reaction?

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Source Fool.com