C4 Therapeutics (CCCC) Surges 26% on Breakthrough Data and FDA Progress – Is This the Start of a Biotech Rally?

Summary
• C4 Therapeutics (CCCC) surges 26.02% intraday to $2.47, breaking above its 52-week high of $7.22
• FDA alignment and Phase 1 cemsidomide data accepted for presentation at IMS Annual Meeting drive optimism
• Cash runway extended to mid-2027 despite $26M Q2 net loss

C4 Therapeutics’ stock is experiencing a historic intraday rally, fueled by clinical progress in its cemsidomide program and strategic FDA alignment. The stock’s 26% surge reflects investor confidence in the company’s pipeline advancements, despite a challenging biotech sector backdrop. With key data presentations and regulatory milestones on the horizon, the stock’s volatility and technical indicators suggest a pivotal moment for this clinical-stage biotech.

Cemsidomide's Phase 1 Success and FDA Alignment Drive C4T's Surge
C4 Therapeutics’ 26% intraday rally is directly tied to its recent Phase 1 cemsidomide data in multiple myeloma (MM) and non-Hodgkin’s lymphoma (NHL), which demonstrated 40% and 50% overall response rates at 75 µg and 100 µg dose levels, respectively. The acceptance of these data for an oral presentation at the International Myeloma Society (IMS) Annual Meeting in September has amplified investor optimism. Additionally, a productive Type C meeting with the FDA refined cemsidomide’s registrational development plan, with Phase 2 dose alignment expected by year-end 2025. A $1M preclinical milestone under its Merck collaboration further reinforced the company’s pipeline progress, signaling near-term catalysts for value creation.

Biotech Sector Steadies as C4T Soars on Pipeline Progress
While the broader biotech sector remains range-bound, C4 Therapeutics’ stock has outperformed peers like Amgen (AMGN), which rose 0.61% intraday. The sector’s focus on capital efficiency and late-stage clinical milestones aligns with C4T’s disciplined approach to extending its cash runway to mid-2027. However, C4T’s rally is driven by its unique cemsidomide pipeline, which targets high-unmet-need hematologic cancers, differentiating it from sector leaders focused on broader therapeutic areas.

Options and ETF Plays for C4T's Volatile Rally
• 200-day average: 2.868 (above) • RSI: 40.68 (neutral) • MACD: 0.075 (bullish divergence) • Bollinger Bands: Price at 2.437 (upper band) • 30D Support/Resistance: 1.502–1.5224 (key retest level)

C4 Therapeutics’ technical profile suggests a short-term bullish bias, with the stock trading near its 200-day average and RSI indicating oversold conditions. The Bollinger Bands suggest a potential reversal if the price breaks above $2.437. For options traders, the CCCC20260116C3 call option (strike: $3, expiration: 2026-01-16) stands out with a 116.94% implied volatility ratio, 4.10% leverage ratio, and 0.563958 delta. This contract offers high leverage for a 5% upside scenario (targeting $2.59), with a projected payoff of $0.12 per share. The CCCC20260116C2 call (strike: $2, IV: 65.35%, leverage: 3.62%) provides a lower-risk entry for a breakout above $2.175. Both contracts benefit from high gamma (0.2048 and 0.2833) and moderate theta decay (-0.0025 and -0.0013), making them ideal for short-term volatility plays. Aggressive bulls should consider CCCC20260116C3 into a close above $2.437, with a stop-loss at $2.175 (middle Bollinger Band).

Backtest C4 Therapeutics Stock Performance
The backtest of C4 Therapeutics (CCCC) after a 26% intraday surge shows mixed results. While the stock experienced a positive maximum return of 0.04% on the day following the surge, the overall short-term performance was lackluster, with the 3-day and 10-day returns being -0.24% and -0.67%, respectively. The 30-day return was slightly better at -0.50%, but the win rates for these periods were not impressive, with the 3-day win rate at 45.75%, the 10-day at 43.48%, and the 30-day at 48.96%. This suggests that while there was some positive movement following the surge, it was not consistently sustained, and the stock faced downward pressure in the immediate aftermath.

C4T's Momentum Intact – Position for Next-Stage Catalysts
C4 Therapeutics’ 26% rally reflects a confluence of clinical progress, regulatory alignment, and capital discipline. With key data presentations at the IMS meeting in September and FDA Phase 2 dose alignment by year-end, the stock’s momentum is likely to persist. Investors should monitor the $2.437 upper Bollinger Band as a critical breakout level and watch for a retest of the $2.175 moving average. Meanwhile, sector leader Amgen (AMGN) rose 0.61% intraday, underscoring the sector’s cautious optimism. For those seeking high-leverage exposure, the CCCC20260116C3 call option offers a compelling setup if the stock sustains above $2.437. Position now ahead of the September data catalyst.