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INGELHEIM, Germany and BOSTON - Boehringer Ingelheim and Cue Biopharma, Inc. (NASDAQ:CUE) have entered into a strategic research collaboration and licensing agreement to develop a new therapy for autoimmune diseases. The partnership aims to advance Cue Biopharma’s CUE-501, a first-in-class bispecific compound designed for targeted B cell depletion. The announcement has sparked investor interest, with Cue’s stock surging over 22% in the past week, though it remains down nearly 57% over the past year. According to InvestingPro data, the company currently trades at a market capitalization of approximately $48 million.
The collaboration represents a significant expansion of Boehringer’s portfolio in autoimmune and inflammatory diseases, areas where patients often struggle to find effective treatments. Carine Boustany, U.S. Research Site Head and Global Head of Immunology and Respiratory Diseases Research at Boehringer Ingelheim, stated that by utilizing Cue Biopharma’s proprietary T-cell engager platform, the goal is to provide a more effective treatment option for patients earlier in their disease progression.
Cue Biopharma’s technology, which is still in the preclinical stage, involves a molecule that binds to a B cell-specific membrane protein while simultaneously engaging virus-specific memory killer T cells. This dual action is expected to selectively deplete B cells and mitigate autoimmune and inflammatory processes, potentially offering a safer and more beneficial approach compared to existing B cell-targeting therapies.
Under the terms of the agreement, Cue Biopharma will receive an upfront payment of $12 million and additional research support. The company is also eligible for up to approximately $345 million in research, development, and commercial milestone-based payments, as well as royalties on net sales. This deal comes at a crucial time for Cue Biopharma, as InvestingPro analysis indicates the company has been rapidly burning through cash, with a negative free cash flow yield. However, the company maintains a healthy current ratio of 1.84, suggesting adequate liquidity to meet near-term obligations.
Daniel Passeri, Chief Executive Officer of Cue Biopharma, expressed enthusiasm for the collaboration, which he believes could further validate their Immuno-STAT platform and represent a novel approach to selectively redirecting and harnessing anti-viral memory T cells against targeted pathological cells.
The financial terms of the collaboration include two preclinical development milestones, with the potential for further expansion into various B cell targeting bispecifics for autoimmune diseases.
Boehringer Ingelheim, a company with a long history in both human and animal health, is known for its investment in research and development, particularly in areas of high unmet medical need. Cue Biopharma, headquartered in Boston, Massachusetts, specializes in developing injectable biologics to selectively engage and modulate disease-specific T cells.
The information presented in this article is based on a press release statement.
In other recent news, Cue Biopharma announced its fourth-quarter financial results for 2024, highlighting significant corporate developments. The company regained global rights for CUE-401, enhancing its control over its product pipeline. Analysts at JMP Securities maintained a Market Outperform rating with a $2.00 price target, citing Cue Biopharma’s solid cash reserves of $22.5 million and the potential for a partnership related to CUE-501 as attractive investment factors. The company is in discussions for potential partnerships for its CUE-500 series, which aim to target memory T-cells and offer a new approach to treating autoimmune diseases.
Preclinical studies have shown promising results for CUE-501, with analysts emphasizing the strategic importance of potential partnerships that could provide non-dilutive capital. Additionally, Cue Biopharma appointed Pasha Sarraf to its board of directors, a move recommended by the Corporate Governance and Nominating Committee. Mr. Sarraf received an option grant to purchase 48,800 shares of Cue Biopharma’s common stock, with vesting over three years. This appointment is part of the company’s efforts to strengthen its leadership team and reflects its commitment to governance and strategic leadership.
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