Why Are Cullinan Oncology Shares Rising Today? - Cullinan Therapeutics (NASDAQ:CGEM)

Taiho Pharmaceutical Co Ltd will co-develop and co-commercialize Cullinan Oncology Inc CGEM lead program, CLN-081/TAS6417.
Under the agreement, Taiho will acquire Cullinan Oncology’s subsidiary, Cullinan Pearl, which has worldwide rights outside of Japan to CLN-081/TAS6417, for an upfront payment of $275 million and up to an additional $130 million tied to EGFR exon20 non-small cell lung cancer regulatory milestones.
Cullinan Oncology will co-develop CLN-081/TAS6417 and retain the option to co-commercialize it in the U.S.
Taiho will commercialize CLN-081/TAS6417 in territories outside U.S. and China.
The companies will equally contribute to the future clinical development of CLN-081/TAS6417 in the U.S., with each receiving 50% of the profits from potential U.S. sales.
As a result of the upfront cash payment and reduction in development and pre-commercialization costs, Cullinan Oncology anticipates its cash runway to extend through 2026 (2024 expected earlier) based on current operating plans.
At December 31, Cullinan held a cash balance of $430.9 million.
Price Action: CGEM shares are up 23.7% at $9.04 during the market session on the last check Thursday.