Cullinan Therapeutics (CGEM) Could Be 35% Undervalued As Phase 3 Lung Cancer Data Lands

Cullinan Therapeutics (CGEM) is back in focus after fresh data from the Phase 3 REZILIENT3 study showed that zipalertinib plus chemotherapy improved progression free survival in a specific non small cell lung cancer setting.

The latest REZILIENT3 data lands at a time when Cullinan Therapeutics has already seen strong share price momentum, with a 90 day share price return of 22.78% and a year to date share price return of 114.13%. Meanwhile, the 1 year total shareholder return of 255.83% points to investors increasingly pricing in both clinical progress and higher perceived long term potential, despite earlier periods of weaker long run total returns.

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The REZILIENT3 update has already pulled Cullinan Therapeutics to US$21.67, while the average analyst target is higher at US$33.55. The key question now is where fair value sits within that gap.

Most Popular Narrative: 35% Undervalued

Cullinan Therapeutics is trading at $21.67 against a widely followed fair value estimate of $33.55, which frames today’s move after REZILIENT3 as part of a broader rerating debate rather than a one day reaction.

Progress of zipalertinib plus platinum chemotherapy in first line EGFR exon 20 insertion NSCLC, supported by a 50% reduction in risk of progression or death and a 6 month median PFS benefit in a large Phase III trial, could open a new revenue stream in a U.S. patient population that management sizes as a $1b plus addressable market across treatment lines.

See why 1 investors see Cullinan Therapeutics as 35% undervalued.

Result: Fair Value of $33.55 (UNDERVALUED)

Still, this bullish Cullinan Therapeutics narrative depends on managing serious safety events in the zipalertinib regimen, as well as on future revenue and margin forecasts materialising as modeled.

Find out about the key risks to this Cullinan Therapeutics narrative.

Next Steps

With sentiment split between clinical upside and execution risk for Cullinan Therapeutics, move quickly to review the details and weigh both sides through the 2 key rewards and 3 important warning signs.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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