Cullinan's Second, Third, And Fourth Pipeline Programs Could Be Standalone Companies
Despite a 80% run since the last time I wrote about CGEM the company remains extremely under-valued and under-appreciated. Still one of my largest positions.
Word Count: 5,275 words, Reading Time: 26 minutes. Not financial advice, do your own due diligence, for entertainment purposes only.
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Introduction
I last wrote about Cullinan Therapeutics CGEM 0.00%↑ in December 2025 with the stock trading around $10 in the aftermath of their American Society of Hematology presentation of new data for their CLN-049 program:
My thesis was CLN-049 was being wrongfully ignored by investors and was not valued in the stock despite having $1 billion to $5 billion in peak sales potential. Even if you heavily discounted the future cash flow due to the therapeutic indication being Acute Myeloid Leukemia, an indication known for a high failure rate in Phase 3, the value in the stock at the time was essentially zero giving investors lots of potential upside.
Since then the stock is up roughly 80% but I’m pleased to report the stock is still under-valued and nearly all of the current valuation reflects optimism for the lead asset, CLN-978, after a recent Immunology Day event. I am now ready to further expand my thesis to not only maintain that CLN-049 is incredibly undervalued heading into a data update at American Society of Hematology 2026 but that also their other two assets, Velinotamig and Zipalertinib, are heinously undervalued as well. Put it all together all four of these assets could literally be stand-alone companies due to the future cash flow potential. As a combined entity, the valuation is absurd and the reason why Cullinan is the only clinical-stage asset I own currently.
(Commercial-stage companies I currently own: TGTX 0.00%↑ HROW 0.00%↑ GERN 0.00%↑ CELC 0.00%↑ and considering a non-biotech investment in RIVN 0.00%↑.)
I’m going to start with a broad overview of Cullinan’s pipeline and then drill down on their second, third, and fourth pipeline assets in descending order based on my personal estimation of their estimated net present value.
Cullinan’s Pipeline
CLN-978, a CD19xCD3 T cell engager: This is their lead asset and the asset I will NOT be covering today. The company recently did an immunology day where they talked about their early data with this program. I’d encourage all Cullinan investors to check out this nearly 3 hour presentation but I will write about this program another time once they have registrational studies underway.
CLN-049, a FLT3xCD3 T cell engager: This was the subject of my last article but I think there is room to expand further on my value estimates for this program and now that ASH 2026 is only 5 months away I think it’s time to revisit this program. The data at ASH 2026, if it confirms the ASH 2025 data and reaches my expectations, will be a MAJOR derisking event for the program. I don’t blame the market for being skeptical, traditionally AML therapies have had a high failure rate in pivotal trials. But that has changed recently with targeted therapy approvals. CLN-049 would address an all-comers population but with a precedent accelerated approval based on those recent approvals. I will get into this more in the next section.
Velinotamig (GR-1803), a BCMAxCD3 T cell engager: This program is very early stage - at their immunology day, Cullinan reported data from two (2!) patients. But the results were so breathtaking to me and unexpected that it has already rocketed up to Cullinan’s third most important program. Who knows, when all is said and done it might become number one. A recent acquisition in this space makes it all the more puzzling why this asset doesn’t get more attention.
Zipalertinib (CLN-081/TAS6417), a EGFR ex20ins inhibitor: There is competition in this space and 50% of the economics of this asset have been sold off but I used to think Cullinan should sell off the remainder of the asset to fund their other high-ceiling pipeline assets. Now that I have done more research in the space I’m not so sure. I can still make the case this could be a blockbuster asset for the company and even with a 50/50 profit share split it could provide free cash flow to fund the company infinitely.
CLN-049 and AML
Let’s quickly level set where we left off in late 2025.
