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Cullinan Management (CGEM)
NASDAQ:CGEM
US Market

Cullinan Management (CGEM) AI Stock Analysis

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Cullinan Management

(NASDAQ:CGEM)

Rating:35Underperform
Price Target:
Cullinan Management's stock is facing significant challenges primarily due to its weak financial performance, characterized by persistent losses and negative cash flow. The technical analysis provides some short-term optimism, but the overall technical outlook remains bearish. The valuation is unattractive due to a negative P/E ratio and no dividend yield, indicating high risk for investors. The stock's potential is heavily reliant on strategic changes and improved financial health.
Positive Factors
Clinical Data
Cullinan's Phase 2b data with zipalertinib in 2L/2L+ NSCLC with EGFR ex20ins mutations is considered best in class, showing a high overall response rate and progression-free survival in a difficult to treat patient population.
Financial Opportunities
Cullinan is eligible to receive up to $130 million in payments for U.S. regulatory milestones, highlighting significant financial opportunities.
Regulatory Approval
An NDA filing for zipalertinib is expected, which could lead to accelerated approval, indicating strong future potential for the drug.
Negative Factors
Clinical Trials
Question remains on zipalertinib's CNS activity as the trial outcomes did not include intracranial overall response rate.
Market Opportunity
The initial market opportunity for zipalertinib may be limited.

Cullinan Management (CGEM) vs. SPDR S&P 500 ETF (SPY)

Cullinan Management Business Overview & Revenue Model

Company DescriptionCullinan Oncology Inc., a biopharmaceutical company, focuses on developing a pipeline of targeted oncology and immuno-oncology therapies for cancer patients in the United States. The company's lead candidate is the CLN-081, an orally available small molecule that is in a Phase I/IIa dose escalation and expansion trial for treating patients with non-small cell lung cancer. Its preclinical products include CLN-049, a humanized bispecific antibody for the treatment of acute myeloid leukemia; CLN-619, a monoclonal antibody for the treatment of solid tumors; CLN-617, a fusion protein for the treatment of solid tumors; CLN-978, a T cell engaging antibody for B-cell malignancies; Opal, a bispecific fusion protein to block the PD-1 axis, and to activate the 4-IBB/CD137 pathway on T cells in tumors; and Jade, a cell therapy to target a novel senescence and cancer-related protein. The company has collaboration agreements with Cullinan Pearl Corp. to develop, manufacture, and commercialize CLN-081 and products containing CLN-081; and Adimab, LLC to discover and/or optimize antibodies. Cullinan Oncology, Inc. was incorporated in 2016 and is headquartered in Cambridge, Massachusetts.
How the Company Makes MoneyCullinan Oncology generates revenue primarily through strategic partnerships, collaborations, and licensing agreements with other pharmaceutical companies. These partnerships often involve milestone payments, royalties, and research funding, providing financial resources to advance their drug development programs. Additionally, Cullinan may earn revenue from out-licensing its pipeline candidates to commercial partners who have the capability to bring these therapies to market. The company's focus on developing promising oncology treatments positions it for potential future revenue from successful drug approvals and commercialization.

Cullinan Management Financial Statement Overview

Summary
Cullinan Management faces considerable financial challenges, with negative profitability and cash flow metrics. While the balance sheet maintains equity strength, the lack of revenue and ongoing losses indicate operational and sustainability risks. The company's heavy reliance on external financing underscores the need for strategic improvements to achieve financial stability.
Income Statement
20
Very Negative
Cullinan Management's income statement reveals significant challenges, with consistent negative net income and EBIT over the years and no revenue for the recent periods. The TTM (Trailing-Twelve-Months) data shows a substantial net loss, indicating persistent operational difficulties. The lack of revenue growth and negative profit margins highlight severe profitability issues.
Balance Sheet
60
Neutral
The balance sheet shows a strong equity position, with stockholders' equity consistently higher than total debt, leading to a favorable debt-to-equity ratio. However, the company faces potential risks with its high liabilities relative to its total assets. The equity ratio remains stable, but the absence of revenue poses a long-term sustainability risk.
Cash Flow
25
Negative
The cash flow statement highlights negative free cash flow and operating cash flow trends, indicating cash burn concerns. The financing activities have been a primary source of cash, suggesting reliance on external funding. The inability to generate positive cash flow from operations poses a significant risk to financial health.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
0.000.000.0018.94M0.00
Gross Profit
-306.00K-310.00K-93.00K18.89M-62.00K
EBIT
-196.92M-191.09M144.65M-67.95M-60.34M
EBITDA
-167.15M-190.34M151.41M-67.90M-60.27M
Net Income Common Stockholders
-167.38M-153.16M111.21M-65.04M-50.85M
Balance SheetCash, Cash Equivalents and Short-Term Investments
398.98M467.07M550.12M430.86M210.21M
Total Assets
621.82M484.18M561.12M437.19M214.71M
Total Debt
2.15M3.59M5.19M0.000.00
Net Debt
-80.85M-94.84M-544.93M-430.86M-168.20M
Total Liabilities
31.50M30.29M26.09M11.81M291.05M
Stockholders Equity
590.33M453.70M535.03M422.58M-77.64M
Cash FlowFree Cash Flow
-145.30M-134.48M-127.80M-44.02M-29.78M
Operating Cash Flow
-145.30M-134.28M-126.66M-43.43M-29.77M
Investing Cash Flow
-136.31M35.81M248.97M-333.77M-5.42M
Financing Cash Flow
266.19M40.75M-25.93M268.78M140.14M

Cullinan Management Technical Analysis

Technical Analysis Sentiment
Positive
Last Price8.75
Price Trends
50DMA
7.93
Positive
100DMA
8.75
Positive
200DMA
12.06
Negative
Market Momentum
MACD
0.18
Negative
RSI
66.37
Neutral
STOCH
83.94
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CGEM, the sentiment is Positive. The current price of 8.75 is above the 20-day moving average (MA) of 7.91, above the 50-day MA of 7.93, and below the 200-day MA of 12.06, indicating a neutral trend. The MACD of 0.18 indicates Negative momentum. The RSI at 66.37 is Neutral, neither overbought nor oversold. The STOCH value of 83.94 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CGEM.

Cullinan Management Risk Analysis

Cullinan Management disclosed 79 risk factors in its most recent earnings report. Cullinan Management reported the most risks in the “Tech & Innovation” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
We will no longer qualify as an "emerging growth company" nor a "smaller reporting company" after December 31, 2024, and, as a result, we will have to comply with increased disclosure and compliance requirements. Q4, 2024
2.
Successful development and regulatory marketing authorization for some of our product candidates is dependent upon our ability to identify patients with certain genetic mutations, and even if regulatory authorities grant marketing authorizations for any of our product candidates, such authorizations may be granted for more limited patient populations. Q4, 2024
3.
The market opportunities for our product candidates and forecasts of market growth may not be accurate, and the actual market for our products may be smaller than we estimate, and even if the markets in which we compete achieve the forecasted growth, our business may not grow at similar rates, or at all. Q4, 2024

Cullinan Management Peers Comparison

Overall Rating
UnderperformOutperform
Sector (53)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
59
Neutral
$730.52M53.85-4.52%92.31%78.17%
55
Neutral
$591.68M-37.13%-38.14%29.69%
53
Neutral
$5.23B3.23-44.27%2.82%16.82%0.11%
49
Neutral
$535.03M-35.41%-39.92%7.38%
48
Neutral
$223.16M-452.20%8.98%6.32%
47
Neutral
$545.42M-41.84%3.95%
35
Underperform
$516.38M-36.57%15.34%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CGEM
Cullinan Management
8.96
-13.44
-60.00%
KURA
Kura Oncology
6.42
-14.37
-69.12%
URGN
Urogen Pharma
5.00
-8.08
-61.77%
ARVN
Arvinas Holding Company
7.00
-22.12
-75.96%
BCYC
Bicycle Therapeutics
8.30
-14.44
-63.50%
IMTX
Immatics
5.88
-6.54
-52.66%

Cullinan Management Corporate Events

Business Operations and Strategy
Cullinan Management Achieves Milestone in Cancer Trial
Positive
Jan 29, 2025

On January 28, 2025, Cullinan Therapeutics, in collaboration with Taiho Pharmaceutical and Taiho Oncology, announced that their REZILIENT1 trial successfully met its primary endpoint of overall response rate. The trial involved zipalertinib monotherapy for patients with non-small cell lung cancer harboring EGFR exon 20 insertion mutations. The results, consistent with previous data presentations, are from the Phase 2b part of the study, with plans to present full results at an upcoming international medical conference. The companies intend to seek U.S. regulatory approval in the latter half of 2025.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.