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On Monday, Cue Biopharma (NASDAQ:CUE), currently trading at $0.76 with a market cap of $47 million, maintained its Market Outperform rating and a $2.00 price target from analysts at Citizens JMP. The firm’s analysts highlighted the company’s recent strides in the autoimmune sector with its development of CUE-501, a promising T-cell engager targeting CD19+ B cells. This novel therapy could serve as a readily available alternative to CAR-T cell therapy, potentially avoiding the toxic side effects such as Cytokine Release Syndrome (CRS) and Immune Effector Cell-Associated Neurotoxicity Syndrome (ICANS). According to InvestingPro analysis, the company currently holds more cash than debt on its balance sheet, though it’s quickly burning through its reserves.
Cue Biopharma recently entered a partnership with Boehringer Ingelheim regarding CUE-501, which could be worth up to $357 million, including an upfront payment of $12 million. Additionally, the company successfully completed a $20 million equity raise. These developments have bolstered Cue Biopharma’s financial position and may pave the way for further strategic partnerships. The company’s revenue grew by 69% in the last twelve months, though InvestingPro data indicates analysts anticipate a sales decline in the current year.
Analysts from Citizens JMP anticipate an R&D day in mid-May, which is expected to shed more light on the potential of the CUE-500 series in targeting not only autoimmune disorders but also fibrotic and oncologic diseases. The CUE-400 series is also anticipated to be a topic of discussion during this event.
Citizens JMP’s analysis conveyed enthusiasm for Cue Biopharma’s upcoming development strategy. The analysts expressed optimism about the company’s ability to not only reach financial milestones but also to leverage its advancements to secure additional partnerships. The company’s progress and potential in developing innovative therapies have been key factors in maintaining the positive outlook and price target.
In other recent news, Cue Biopharma has announced a significant agreement with Boehringer Ingelheim to develop and commercialize CUE-501, a therapy targeting autoimmune diseases. This collaboration is valued at approximately $357 million, with an upfront payment of $12 million to Cue Biopharma, which strengthens its cash reserves. Additionally, Cue Biopharma has launched a public stock offering to raise further capital, managed by Oppenheimer & Co. Inc. The offering will include common stock and warrants, subject to market conditions. Analysts at JMP Securities have maintained a Market Outperform rating for Cue Biopharma, reiterating a $2.00 price target based on the company’s cash position and strategic partnerships. The company’s financial position includes a pro forma cash balance of about $28 million, with potential for future milestone payments. Furthermore, Cue Biopharma has regained global rights for CUE-401, enhancing control over its product pipeline. The company is also exploring additional partnerships for its CUE-500 series, which could provide non-dilutive capital. These developments underscore Cue Biopharma’s strategic positioning in the biopharmaceutical sector.
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