Jefferies starts Cue Biopharma stock at Buy on IL-2 platform promise

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On Wednesday, the biotechnology company Cue Biopharma (NASDAQ:) saw its stock receive a favorable outlook from investment firm Jefferies, which initiated coverage with a Buy rating and a price target set at $6.00. The company’s innovative IL-2 platform, which aims to enhance the safety and efficacy over first-generation IL-2 therapies, was highlighted as a significant factor in this positive assessment.

Cue Biopharma’s leading drug candidate, CUE-101, is currently under development for the treatment of HPV-positive head and neck squamous cell carcinoma (HNSCC) and has demonstrated promising preliminary results both as a monotherapy and in combination with pembrolizumab. The company has also achieved regulatory alignment following an End-of-Phase 1 meeting on the paths forward for this therapy.

In addition to CUE-101, Cue Biopharma is working on CUE-102, targeting WT-1, which is in Phase I trials. The company’s pipeline also includes potential treatments for autoimmune diseases, further underscoring the potential of its platform. Jefferies sees the HNSCC opportunity as undervalued and suggests that a partnership this year could help address the company’s cash concerns and serve as a catalyst for the stock.

Jefferies’ coverage initiation reflects optimism about Cue Biopharma’s technology platform and its prospects in the market. The investment firm anticipates that the company’s novel approach and ongoing developments could lead to significant advancements in treatment options for cancer and autoimmune diseases.

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