Context Therapeutics: Another clinical-stage oncology research firm to go public soon

The US primary markets seem to be having a record-breaking start to the year, with over $171 billion raised in the first half of 2021 compared to $168 billion for the entire year of 2020.

Clinical-stage biopharmaceutical company Context Therapeutics Inc, an oncology company that aims to develop innovative therapies for treating breast, ovarian and endometrial cancer, is a strong contender on the pipeline.

In the U.S, 1 in 8 women is diagnosed with breast cancer every year. There were more than 2 million cases of breast cancer and ovarian cancer in the US at the beginning of this year. While breast cancer is estimated to take 21,410 this year, the fatality for ovarian cancer is expected to be somewhere around 14,000.  

Context has currently two major products in the pipeline that would focus on both these types of cancers. The PR antagonist program is the first product, which will help in downregulating the cancer stem cell and help increase immunity. In 2021, Context started Phase 2 investigation of the PR antagonist program and by end of 2022, the management expects to have preliminary data of the Phase 2 investigation.

The bispecific antibody program is the second product, which is nothing but medicine that creates external antibodies in the body to fight cancer. A lot of companies have been trying to come with the same medicine but have seen little success. Context would be starting with the clinical development of this program in 2022.

Context Therapeutics reported a net income of $8.9 million and gross revenue exceeding $1.07 billion at the end of the first quarter. The company has total assets worth $22 million. 

The Philadelphia-based company had filed for its IPO on 27 May 2021 and plans to list on the Nasdaq under the symbol CNTX. The management is yet to disclose the date of issue or any other details regarding the IPO as of yet. Context has a lot of business strategies planned for the growth of the company and its various research operations. Hence the company plans to raise funds through the primary market.

Meanwhile, Context has not commercialized any of its products, and therefore there are no revenues. With the rise in expenses and other research and development operations, revenue generation is set to become vital for the company in the near term.

While the limited operating history offers little to evaluate the company, oncology remains a highly lucrative industry that could handsomely reward firms that develop products with good efficacy data. Like other clinical-stage companies, Context is speculative in nature and it would be interesting to how the stock moves once it gets listed on Wall Street.