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Investing.com - Lucid Capital Markets initiated coverage on Cue Biopharma (NASDAQ:CUE) with a Buy rating and a price target of $4.00. Currently trading at $0.83, the stock appears undervalued according to InvestingPro analysis, with analyst targets ranging from $2.00 to $6.00.
The research firm highlighted CUE-401, the company’s lead asset, as a novel bispecific treatment for autoimmune disease that links a modified IL-2 and a masked, attenuated TGF-β to an Fc backbone, which stabilizes the molecule and extends its half-life. InvestingPro data shows the company maintains a healthy balance sheet with more cash than debt, though it’s currently experiencing rapid cash burn.
Lucid Capital Markets noted that preclinical data shows strong mechanistic validation and broad efficacy across autoimmune models, positioning CUE-401 as a potential first-in-class, disease-modifying therapy, with the company advancing it first in atopic dermatitis.
The firm pointed to Cue Biopharma’s step-wise development strategy as both capital-efficient and designed to maximize platform value, with IND-enabling studies currently ongoing for CUE-401.
Beyond CUE-401, Lucid Capital Markets mentioned the company’s CUE-500 series, which offers a differentiated approach to restore immune balance, with the recent collaboration with Boehringer Ingelheim on CUE-501 providing external validation and non-dilutive funding for pipeline expansion.
In other recent news, Cue Biopharma announced updated clinical data for its experimental cancer immunotherapy, CUE-101. The data indicated a 50% overall response rate in treatment-naïve patients with HPV-positive recurrent/metastatic head and neck squamous cell carcinoma. Presented by Dr. Dimitrios Colevas, the findings from the company’s Phase 1 trial also highlighted a 12-month overall survival rate of 88%. Additionally, the estimated median overall survival was reported to be 32 months. These developments are part of Cue Biopharma’s ongoing efforts to advance cancer treatment options. The trial evaluated CUE-101 in combination with pembrolizumab, also known as KEYTRUDA. Investors and stakeholders may find these results significant as Cue Biopharma continues to pursue innovative therapies in the oncology field.
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