Cullinan Oncology stock rating reiterated at Buy by Clear Street

Published 03/07/2025, 12:04
Cullinan Oncology stock rating reiterated at Buy by Clear Street

Investing.com - Clear Street has reiterated its Buy rating and $22.00 price target on Cullinan Oncology Inc. (NASDAQ:CGEM), following the recent approval of a competing drug. The stock, currently trading at $7.76, shows significant upside potential according to InvestingPro data, with analyst targets ranging from $17 to $35.

The U.S. Food and Drug Administration approved sunvozertinib (ZEGFROVY) on July 2, 2025, for second-line and beyond EGFR exon20 insertion non-small cell lung cancer (NSCLC), but Clear Street maintains this development does not alter its investment thesis for Cullinan.

Clear Street’s valuation remains based on a conservative 30-40% peak penetration for Cullinan’s zipalertinib, projecting peak sales of $220 million for the company, with Taiho maintaining exclusivity outside the United States.

Both sunvozertinib and zipalertinib are currently under investigation for first-line treatment, with zipalertinib’s Rezilient3 trial expected to complete patient enrollment in the first half of 2026.

Clear Street notes that zipalertinib’s combination strategy with chemotherapy—versus sunvozertinib’s monotherapy approach against first-line chemotherapy—may enhance zipalertinib’s likelihood of success and market share, particularly if it demonstrates superior survival outcomes.

In other recent news, Cullinan Therapeutics has made significant strides in its clinical and strategic initiatives. The company has acquired an exclusive license for velinotamig, a BCMAxCD3 bispecific T cell engager, from Genrix Bio, excluding Greater China. This agreement involves an upfront payment of $20 million, with potential future payments up to $692 million based on development, regulatory, and sales milestones. Additionally, Cullinan has initiated a clinical study for its drug candidate CLN-978, targeting Sjögren’s disease in the United States, following FDA clearance. This study aims to assess the safety and efficacy of CLN-978, which is also being investigated for systemic lupus erythematosus and rheumatoid arthritis. The European Medicines Agency has approved Cullinan’s Clinical Trial Application for CLN-978, allowing a Phase 1 trial to begin in Europe for rheumatoid arthritis in 2025. These recent developments highlight Cullinan’s focus on expanding its pipeline and advancing novel treatments for autoimmune diseases.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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