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On Tuesday, JMP Securities maintained a positive outlook on Cue Biopharma (NASDAQ:CUE) shares, with analyst Reni Benjamin reiterating a Market Outperform rating and a $2.00 price target. According to InvestingPro data, the stock has shown strong momentum with a 28% gain over the past week, though analyst targets range from $2.00 to $6.00, suggesting significant potential upside. This affirmation of confidence in the biotechnology firm follows Cue Biopharma’s recent announcement of a significant partnership with Boehringer Ingelheim, a leading pharmaceutical company.
Cue Biopharma has entered into an agreement with Boehringer Ingelheim to develop and commercialize CUE-501, a novel therapeutic designed to target CD19 and deplete B cells in autoimmune diseases. The total value of this collaboration is estimated at $357 million, including an upfront payment of $12 million that strengthens Cue’s cash reserves. This deal is particularly significant for the company, which currently has a market capitalization of $48.9 million.
The deal with Boehringer Ingelheim also opens the door to further research and development into a range of B-cell targeting bispecifics for autoimmune diseases. This could represent a substantial expansion of Cue Biopharma’s development pipeline and potential market opportunities.
JMP Securities’ analyst highlighted the company’s financial position, noting that Cue Biopharma’s pro forma cash balance is approximately $28 million. InvestingPro analysis reveals that while the company holds more cash than debt on its balance sheet, with a healthy current ratio of 1.84, it’s currently burning through cash rapidly. Get access to 10+ additional ProTips and comprehensive financial metrics with InvestingPro’s detailed research report. This, combined with the potential to meet preclinical development milestones in 2025 and 2026, for which the financial details have not been disclosed, suggests a robust trajectory for the company.
The partnership for CUE-501 and the company’s solid cash position are key factors that contribute to JMP Securities’ view of Cue Biopharma as an attractive investment with upside potential. The firm’s innovative platform and strategic collaborations position it well within the biopharmaceutical sector, though investors should note that the company’s stock has shown significant price volatility in recent months.
In other recent news, Cue Biopharma has announced a significant public stock offering aimed at raising additional capital. The offering includes common stock shares and accompanying warrants, with Oppenheimer & Co. Inc. as the sole book-running manager. This development comes amid Cue Biopharma’s ongoing collaboration with Boehringer Ingelheim to advance its CUE-501 treatment for autoimmune diseases. The agreement involves an upfront payment of $12 million to Cue Biopharma, with potential milestone payments totaling approximately $345 million.
Additionally, JMP Securities has maintained a Market Outperform rating for Cue Biopharma, citing the company’s strong cash reserves and the intrinsic value of its platform as key factors. This positive outlook is further supported by Cue Biopharma’s recent regaining of global rights for CUE-401, enhancing its control over its product pipeline. In leadership news, Cue Biopharma has appointed Pasha Sarraf to its board of directors, highlighting the company’s commitment to strengthening its governance and strategic leadership. Mr. Sarraf’s appointment includes an option grant to purchase 48,800 shares of common stock, with vesting scheduled over three years.
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