Cullinan Therapeutics: Promising Phase 2b Data and Strategic Partnerships Drive Buy Rating

Cullinan Management (CGEM – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Soumit Roy from JonesTrading maintained a Buy rating on the stock and has a $34.00 price target.

Soumit Roy has given his Buy rating due to a combination of factors that highlight Cullinan Therapeutics’ promising potential in the healthcare sector. The company’s Phase 2b data for zipalertinib in treating 2L/2L+ NSCLC patients with EGFR ex20ins mutations is seen as potentially best-in-class. This is evidenced by an objective response rate of 35%, a median duration of response of 8.8 months, and a median progression-free survival of 9.5 months, which are significant metrics in a challenging patient population.
Furthermore, despite some patients having prior treatment with J&J’s Rybrevant, zipalertinib demonstrated a longer progression-free survival compared to Rybrevant. The anticipated NDA filing in the second half of 2025 for accelerated approval, coupled with a strategic partnership with Taiho that includes a 50/50 cost and profit-sharing agreement and potential regulatory milestone payments, further strengthens the investment case for Cullinan. The upcoming presentation at ASCO is expected to provide additional insights into the drug’s efficacy and safety profile, which could further bolster investor confidence.

In another report released on May 12, UBS also maintained a Buy rating on the stock with a $24.00 price target.

Based on the recent corporate insider activity of 15 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of CGEM in relation to earlier this year.