Guggenheim has opened coverage on Cullinan Oncology Inc. (NASDAQ:CGEM), assigning a Buy rating and setting a $30.00 price target. At the company’s current trading level of $11.96, that target represents an implied upside of about 151%.
The firm framed the present share price as "a good entry point" ahead of a sequence of Phase 1 catalysts scheduled for 2024. Those catalysts center on Cullinan’s bispecific T cell engagers being evaluated in both autoimmune diseases and acute myeloid leukemia (AML). The outlook coincides with a period of strong equity performance for the company, which the research firm noted has returned 56% over the past six months.
Guggenheim singled out CLN-978, a CD19xCD3 bispecific antibody, as Cullinan’s primary value driver. The analyst report identifies upcoming dose escalation data in three autoimmune indications - lupus, rheumatoid arthritis, and Sjogren’s - that are expected across the second through fourth quarters of 2024. These readouts will form the early clinical evidence the firm views as central to the company’s autoimmune strategy.
On potential longer-term outcomes, the firm said CLN-978 could, at oncology-like doses given as an acute treatment regimen, achieve what it described as "safe, deep B-cell depletion," a result that could permit treatment-free intervals for patients. Guggenheim noted that data supporting such treatment-free strategies would likely emerge in 2027 and beyond.
The analyst also highlighted investor considerations, pointing to the multi-year nature of the company’s thesis and the risk of impatience if competitive updates surface. Guggenheim observed that Cullinan’s shares remain below the $19 price of an April 2024 equity offering that was announced alongside the CLN-978 autoimmune strategy.
Cullinan itself disclosed clinical development plans extending into 2026, with a focus on autoimmune and oncology program readouts. The company reported a preliminary year-end cash position of $439 million and indicated plans to present multiple data readouts for CLN-978 across three autoimmune indications next year.
On the oncology front, Cullinan released clinical data from a Phase 1 study of CLN-049, a FLT3xCD3 bispecific T cell engager. The company reported a 31% complete response rate in patients with relapsed/refractory AML and myelodysplastic syndrome. The U.S. Food and Drug Administration has granted Fast Track designation to CLN-049.
In addition to Guggenheim’s initiation, TD Cowen has reiterated a Buy rating on Cullinan Oncology following the presentation of CLN-049 data at the American Society of Hematology conference. TD Cowen emphasized several competitive attributes of Cullinan’s program during discussions with the company’s senior management.
Taken together, the analyst initiation, the company’s reported cash position, and the early clinical data for CLN-049 and the planned CLN-978 readouts frame Cullinan’s near-term narrative around clinical validation in both autoimmune disease and AML. Investors will be watching the staged Phase 1 readouts in 2024 as the next major set of evidence shaping the company’s multi-year development pathway.
Relevant data and figures cited:
- Initiation rating: Buy
- Guggenheim price target: $30.00
- Current share price referenced: $11.96
- Implied upside: approximately 151%
- Analyst target range (InvestingPro data as cited): $22 to $38
- Six-month price return: 56%
- Expected CLN-978 dose escalation readouts: Q2-Q4 2024
- Company preliminary year-end cash: $439 million
- CLN-049 Phase 1 reported complete response rate: 31%