Clear Street Sees Favorable Read-Through for Cullinan Therapeutics' CLN-978 Trial in SjD Despite Novartis' Positive Phase 3 Results

Cullinan Therapeutics' CLN-978 trial in Sjogren's disease has a favorable read-through from Novartis' positive Phase 3 trial results for ianalumab. Clear Street analyst notes that CLN-978's distinct target and structural design provide advantages over ianalumab, preserving its opportunity despite Novartis' lead. The analyst maintains a Buy rating and $22 price target on Cullinan shares.

Cullinan Therapeutics, Inc. (Nasdaq: CGEM) has made significant strides in its CLN-978 trial for Sjögren’s disease, with a favorable read-through from Novartis' positive Phase 3 trial results for ianalumab. Clear Street analyst notes that CLN-978's distinct target and structural design offer advantages over ianalumab, preserving its opportunity despite Novartis' lead. The analyst maintains a Buy rating and a $22 price target on Cullinan shares.

Cullinan's CLN-978 program is a CD19xCD3 bispecific T cell engager that targets B cells in autoimmune diseases, including Sjögren’s disease. The global Phase 1 study in patients with active, moderate to severe Sjögren’s disease is enrolling in the U.S. and Europe, with recent regulatory approval for European enrollment. The company plans to share initial data from this study during the first half of 2026.

Novartis' ianalumab, a CD20 monoclonal antibody, recently demonstrated positive results in a Phase 3 trial for Sjögren’s disease. However, Clear Street analyst highlights that CLN-978's distinct target and structural design provide advantages. CLN-978's ability to target multiple B cell subsets and its structural design, which includes a T cell engager, offer potential benefits over ianalumab.

The analyst's positive outlook is supported by Cullinan's robust pipeline and financial position. The company's cash position stood at $510.9 million as of June 30, 2025, providing runway into 2028. Additionally, Cullinan has a diversified portfolio of clinical-stage assets, including bispecific T cell engagers and cytokine fusion proteins, targeting both autoimmune diseases and cancer.

References:
[1] https://www.biospace.com/press-releases/cullinan-therapeutics-provides-corporate-update-and-reports-second-quarter-2025-financial-results