Additional multi-dose data for CLN-978 in difficult-to-treat rheumatoid arthritis (RA), once expected in the third quarter, will now arrive in December.
- Safety questions around zipalertinib from mid-September late-stage lung cancer results added to the pressure on the stock.
- In December, the company plans to report both multi-dose and single-target-dose results for CLN-978, across treatment-refractory SLE, difficult-to-treat RA, and treatment-refractory Sjögren’s disease.
- TD Cowen argued the recent weakness offers a chance to buy before those updates.
Cullinan Therapeutics (CGEM) shares tumbled as much as 12% on Thursday after the company outlined fourth-quarter pipeline updates that pushed rheumatoid arthritis data later than previously signaled.
The decline reflected a broader sell-off in clinical-stage biotech names and investor disappointment that additional multi-dose data for CLN-978 in difficult-to-treat rheumatoid arthritis (RA), once expected in the third quarter, will now arrive in December along with results in lupus and Sjögren’s disease.
Safety questions around zipalertinib from mid-September late-stage lung cancer results added to the pressure. Grade 3 or higher adverse events were substantially higher with the combination than chemotherapy alone.
At the time of writing, the stock was down 5%, after a 22% drop on Wednesday.
Q4 Data Calendar
Cullinan said it will present multi-dose regimen data for velinotamig from an ongoing early-stage study in systemic lupus erythematosus (SLE) at the American College of Rheumatology meeting on Nov. 8.
In December, the company plans to report both multi-dose and single-target-dose results for CLN-978, across treatment-refractory SLE, difficult-to-treat RA, and treatment-refractory Sjögren’s disease. Chief Executive Nadim Ahmed described the package as the most comprehensive clinical dataset to date for a drug in the category spanning those indications.
The same month, Cullinan intends to share longer follow-up from the dose-escalation portion of its early-stage study of CLN-049 in relapsed or refractory acute myeloid leukemia. After a recent successful FDA meeting, the company said it is moving toward a potentially registrational mid-stage trial.
Analyst Says Buy
TD Cowen, which rates the stock Buy, said the fourth-quarter slate is full of events that could help set mid-stage plans for CLN-978 in lupus, RA, and Sjögren’s and test how durable CLN-049 looks in relapsed or refractory AML. The firm argued the recent weakness offers a chance to buy before those updates.
How Did CGEM Retail Traders React?
On Stocktwits, retail sentiment around CGEM stock rose from ‘neutral’ to ‘bullish’ over the past 24 hours, while message volume increased from ‘normal’ to ‘high’ levels.
A Stocktwits user said the selloff doesn’t match the news.
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CGEM stock has gained 55% year-to-date.
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