Cullinan Management: Strategic Licensing and Financial Stability Drive Buy Rating

William Blair analyst Matt Phipps has reiterated their bullish stance on CGEM stock, giving a Buy rating on June 2.

Matt Phipps has given his Buy rating due to a combination of factors related to Cullinan Management’s strategic developments and financial outlook. The company has recently entered into a significant license agreement with Genrix Bio, securing rights to develop and commercialize the BCMAxCD3 bispecific TCE, velinotamig, outside of Greater China. This transaction, which involves an upfront payment and potential milestone payments, is expected to complement Cullinan’s existing autoimmune pipeline, particularly enhancing the development of CLN-978.
Furthermore, Cullinan’s financial stability is reinforced by a cash runway that supports operations into 2028, providing a solid foundation for ongoing and future projects. The anticipated initial results for CLN-978 in systemic lupus erythematosus (SLE) in the fourth quarter are seen as a potential catalyst for share value. The strategic addition of velinotamig, with its specific targeting capabilities, is expected to address unmet needs in autoimmune indications, thereby offering promising opportunities for growth and innovation.