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Cue Biopharma (NASDAQ:CUE), Inc., a pharmaceutical company with a current market capitalization of $47.6 million, has entered into a significant agreement with Boehringer Ingelheim International GmbH (BI) on Monday to advance its autoimmune disease treatment, CUE-501. The collaboration is set to focus on research and development of B cell depletion molecules, a therapeutic approach for autoimmune conditions. According to InvestingPro data, the company maintains a healthy balance sheet with more cash than debt, positioning it well for this strategic partnership.
Under the terms of the deal, Cue Biopharma will receive an upfront payment of $12 million from BI. The agreement also outlines potential success-based payments that could total approximately $345 million, tied to research, development, and commercial milestones. Additionally, Cue Biopharma is eligible for royalty payments on future net sales of any resulting products. This deal comes at a crucial time, as InvestingPro analysis shows the company has been quickly burning through cash, with a significant -77% free cash flow yield. Get access to 10+ additional ProTips and comprehensive financial metrics with InvestingPro.
The collaboration will span a four-year research term, during which Cue Biopharma is barred from independently developing or commercializing B cell depletion molecules. BI will have the exclusive rights to further research, develop, manufacture, and commercialize the licensed products worldwide, with the option to include additional compounds in the future.
In a related move, Cue Biopharma has amended its existing license agreement with Albert Einstein College of Medicine, which initially granted the company rights to certain technologies. The amendment allows for the sublicense to BI and modifies certain financial obligations to Einstein in connection with the sublicense.
The collaboration and license agreement is set to continue on a product-by-product and country-by-country basis until the end of the applicable royalty term, with provisions for early termination by either party under specific circumstances.
This strategic partnership is expected to bolster Cue Biopharma’s position in the field of autoimmune disease treatments. The company’s stock has shown recent momentum with a 22% gain over the past week, though it remains significantly below its 52-week high of $2.26. The agreement, along with the amendment, will be detailed further in the company’s upcoming Quarterly Report on Form 10-Q for the quarter ending March 31, 2025, which will be filed with the U.S. Securities and Exchange Commission. For deeper insights into Cue Biopharma’s financial health and future prospects, access the comprehensive Pro Research Report available exclusively on InvestingPro, part of their coverage of 1,400+ US equities.
This news is based on a press release statement.
In other recent news, Cue Biopharma has announced a strategic research collaboration with Boehringer Ingelheim aimed at developing a new therapy for autoimmune diseases. The agreement involves Cue Biopharma receiving an upfront payment of $12 million and is eligible for up to $345 million in milestone-based payments, along with royalties on net sales. The collaboration focuses on advancing Cue Biopharma’s CUE-501, a bispecific compound designed for targeted B cell depletion, which is still in the preclinical stage. Additionally, Cue Biopharma reported its fourth-quarter financial results for 2024, highlighting a solid cash reserve of $22.5 million. Analysts at JMP Securities have maintained a Market Outperform rating for Cue Biopharma, citing the company’s cash position and potential partnerships as key investment appeals.
The company has regained global rights for CUE-401, enhancing its control over its product pipeline. Cue Biopharma is actively pursuing discussions for potential partnerships related to its CUE-500 series, with preclinical studies showing promising results for CUE-501. In leadership news, Cue Biopharma appointed Pasha Sarraf to its board of directors, a move aimed at strengthening its leadership team. Mr. Sarraf will receive an option grant to purchase 48,800 shares of the company’s common stock, with vesting over a three-year period.
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