Cullinan Management (CGEM) AI Stock Analysis

• Market Cap: $516.38M
• Dividend Yield: N/A
• Average Volume (3M): 420.91K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.23
• Revenue Growth: N/A
• EPS Growth: 15.34%
• Country: US
• Employees: 111
• Sector: Healthcare
• Sector Strength: 39
• Industry: Biotechnology
• EPS (TTM): -0.74
• Shares Outstanding: 59,014,668
• 10 Day Avg. Volume: 310,575
• 30 Day Avg. Volume: 420,914
• PEG Ratio: 0.30
• Price to Book (P/B): 0.75
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -3.06
• Enterprise Value/Market Cap: 0.71
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: -2.38K
• Enterprise Value/Ebitda: -0.49
• 1Y Price Target: $31.00
• Price Target Upside: 254.29% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 35 Underperform
• 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 Business Overview & Revenue Model

Company Description

Cullinan 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 Money

Cullinan 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

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

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

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 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
0.00	0.00	0.00	18.94M	0.00
	Gross Profit
-306.00K	-310.00K	-93.00K	18.89M	-62.00K
	EBIT
-196.92M	-191.09M	144.65M	-67.95M	-60.34M
	EBITDA
-167.15M	-190.34M	151.41M	-67.90M	-60.27M
	Net Income Common Stockholders
-167.38M	-153.16M	111.21M	-65.04M	-50.85M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
398.98M	467.07M	550.12M	430.86M	210.21M
	Total Assets
621.82M	484.18M	561.12M	437.19M	214.71M
	Total Debt
2.15M	3.59M	5.19M	0.00	0.00
	Net Debt
-80.85M	-94.84M	-544.93M	-430.86M	-168.20M
	Total Liabilities
31.50M	30.29M	26.09M	11.81M	291.05M
	Stockholders Equity
590.33M	453.70M	535.03M	422.58M	-77.64M
Cash Flow		Free 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
-136.31M	35.81M	248.97M	-333.77M	-5.42M
	Financing Cash Flow
266.19M	40.75M	-25.93M	268.78M	140.14M

Cullinan Management Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.75
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IMTX	59 Neutral	$730.52M	53.85	-4.52%	―	92.31%	78.17%
BCYC	55 Neutral	$591.68M	―	-37.13%	―	-38.14%	29.69%
Sector *	53 Neutral	$5.23B	3.23	-44.27%	2.82%	16.82%	0.11%
ARVN	49 Neutral	$535.03M	―	-35.41%	―	-39.92%	7.38%
URGN	48 Neutral	$223.16M	―	-452.20%	―	8.98%	6.32%
KURA	47 Neutral	$545.42M	―	-41.84%	―	―	3.95%
CGEM	35 Underperform	$516.38M	―	-36.57%	―	―	15.34%

Cullinan Management Corporate Events

Cullinan Management Achieves Milestone in Cancer Trial

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.