BOSTON - Cue Biopharma , Inc. (NASDAQ:CUE), a clinical-stage biopharmaceutical company, announced today its initiation of an underwritten public offering of its common stock and accompanying common stock purchase warrants. The Boston-based company, which focuses on developing a new class of therapeutic biologics aimed at modulating disease-specific T cells, has not disclosed the exact size or terms of the offering, stating that completion is dependent on market and other conditions.
The securities in the offering are being sold by Cue Biopharma, with Oppenheimer & Co. serving as the sole book-running manager and Newbridge Securities Corporation acting as the co-manager. The sale will be conducted through a prospectus supplement and accompanying prospectus, which are part of a shelf registration statement filed on May 9, 2023, and declared effective by the Securities and Exchange Commission on May 26, 2023.
The preliminary prospectus supplement related to the offering will be available on the SEC's website, and interested parties can also obtain copies from Oppenheimer & Co. upon request. Cue Biopharma has cautioned that the press release does not constitute an offer to sell or a solicitation of an offer to buy the securities, and sales will not be made in jurisdictions where such activities would be unlawful prior to registration or qualification under the securities laws.
Cue Biopharma's proprietary Immuno-STAT™ platform and biologics are designed to selectively engage and modulate disease-specific T cells within the body, aiming to utilize the immune system's curative potential without the adverse effects of broad systemic immune modulation. The company's management team and Board of Directors offer extensive experience in immunology, immuno-oncology, and the clinical development of protein biologics.
The press release also contains forward-looking statements regarding the proposed public offering, and Cue Biopharma acknowledges that actual results could differ materially due to various risks and uncertainties. These include market conditions, the company's limited operating history, limited cash, history of losses, and the inherent risks in research and development activities.
This article is based on a press release statement from Cue Biopharma, Inc.
In other recent news, Cue Biopharma has seen significant shifts in its corporate structure and strategic focus. The company announced the appointment of Lucinda Warren as its new chief business officer, following a career at Johnson & Johnson. This comes after the resignation of board member Michael J. Fox, which was not due to any disagreements with the company.
In a strategic shift, Cue Biopharma has prioritized its autoimmune programs, resulting in a 25% reduction in workforce. This aligns with the development of treatments for autoimmune diseases, such as CUE-401 and CUE-501, in partnership with Ono Pharmaceutical.
Financial analysts from Stifel and Piper Sandler have responded to these changes. Stifel reduced its price target for Cue Biopharma from $8.00 to $4.00, maintaining a Buy rating, while Piper Sandler maintains its Overweight rating with a steady price target of $3.00.
Cue Biopharma is actively reducing its debt, currently standing at $6.2 million, and ended the second quarter of 2024 with $30 million in cash. The company anticipates these funds to support operations until the second quarter of 2025. These are recent developments providing insight into the company's strategic and financial direction.
InvestingPro Insights
As Cue Biopharma, Inc. (NASDAQ:CUE) embarks on its public offering, investors are keen to understand the financial health and market position of the company. According to InvestingPro data, Cue Biopharma currently holds a market capitalization of approximately $21.94 million. Despite a significant revenue growth of 363.67% over the last twelve months as of Q2 2024, the company's gross profit margin stands at a concerning -355.52%, indicating that it spends more on the costs of goods sold than it earns in revenue.
InvestingPro Tips for Cue Biopharma reveal a mixed landscape. On the positive side, the company holds more cash than debt on its balance sheet, which is a sign of financial stability and may be reassuring for investors considering participation in the offering. Moreover, three analysts have revised their earnings upwards for the upcoming period, suggesting potential optimism about the company's future performance. On the other hand, the company is quickly burning through cash, and its stock price has experienced a significant decline over various timeframes, with a one-week total return of -15.91% and a one-year total return of -79.87%.
Investors should note that the company's stock is trading at a low revenue valuation multiple, which could be interpreted as the market pricing the stock conservatively relative to its sales. Additionally, with a current price significantly below the fair value of $4 suggested by analyst targets, and closer to the InvestingPro fair value estimate of $0.79, investors may want to consider the potential for upside if the company can address its challenges and capitalize on its market opportunities.
For those seeking more detailed analysis, there are additional InvestingPro Tips available on the platform that can provide further insights into Cue Biopharma's financials and market prospects. These tips can be a valuable resource for investors making informed decisions about the company's public offering.
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