CULLINAN THERAPEUTICS INC (NASDAQ:CGEM) Reports Wider Q2 2025 Loss, Misses EPS Estimates Amid Rising R&D Costs

CULLINAN THERAPEUTICS INC (NASDAQ:CGEM) reported its second-quarter 2025 financial results, posting a net loss of $70.1 million, or $1.07 per share, compared to a net loss of $42.0 million, or $0.68 per share, in the same period last year. The reported earnings per share (EPS) of -$1.07 missed analyst estimates of -$0.85, while revenue remained at $0.0, in line with expectations. The company’s stock saw a pre-market decline of approximately 2.7%, reflecting investor disappointment over the wider-than-expected loss.

Key Financial Takeaways

• EPS Miss: Reported EPS of -$1.07 fell short of the consensus estimate of -$0.85.
• Revenue: No revenue was reported, matching expectations.
• R&D Expenses: Increased to $61.0 million from $36.3 million in Q2 2024, reflecting higher clinical trial costs.
• Cash Position: The company holds $510.9 million in cash and investments, providing runway into 2028.

Market Reaction

The negative pre-market movement suggests investors were anticipating better cost control or faster clinical progress. While the cash position remains strong, the widening losses—driven by increased R&D spending—may have raised concerns about near-term profitability. The stock’s performance over the past month has been relatively flat (+1.0%), indicating muted sentiment ahead of earnings.

Pipeline and Business Updates

Cullinan provided several key updates on its clinical programs:

• CLN-978 (CD19xCD3 bispecific T cell engager): Enrollment continues in Phase 1 studies for systemic lupus erythematosus (SLE), rheumatoid arthritis (RA), and Sjögren’s disease, with initial SLE data expected in Q4 2025.
• Velinotamig (BCMAxCD3 bispecific T cell engager): Recently in-licensed from Genrix Bio, with a Phase 1 study in autoimmune diseases planned in China by year-end.
• Zipalertinib (EGFR ex20ins inhibitor): Pivotal Phase 2b data presented at ASCO 2025; Taiho plans an NDA submission for relapsed EGFR ex20ins NSCLC in late 2025.
• Board Appointments: Added Mittie Doyle, M.D., and Andrew Allen, M.D., Ph.D., to strengthen leadership in immunology and oncology.

Looking Ahead

Analysts project full-year 2025 EPS at -$3.32, with Q3 estimates at -$0.84. The lack of revenue expectations suggests that investor focus remains squarely on clinical milestones rather than near-term commercialization.

For a deeper dive into Cullinan’s earnings and analyst estimates, visit the earnings page.

Disclaimer: This article is not investment advice. Investors should conduct their own research before making financial decisions.