To extend its cash reserves, Cue Biopharma is shifting focus away from its oncology assets and will zero in on its autoimmune disease pipeline instead. The biotech is also slashing its workforce by 25%.
Its preclinical autoimmune pipeline features the Ono Pharmaceutical-partnered CUE-401, which is designed to increase the number of regulatory immune T cells. There is also CUE-501 that directs selective memory T cells to deplete B cells, which should address certain B cell-mediated autoimmune diseases.
Dan PasseriThe company is still figuring out which diseases it would investigate these assets for in the clinic, with updates expected from the second half of this year, CEO Dan Passeri said in an email.
Meanwhile, Cue will maintain the “requisite clinical capabilities” to generate mature survival data for its Phase 1 oncology candidates, CUE-101 and CUE-102, for which it is seeking partners, according to a Thursday release.
Stifel analysts said in a note that the decision to prioritize autoimmune programs “made sense.” They wrote that the dose-expansion data for CUE-101 plus Merck’s Keytruda in certain patients with squamous cell carcinoma of the head and neck seemed “differentiated.” However, the combination was only tested in a small indication, potentially making it difficult to attract “near-term strategic interest” from partners.
As for its workforce, the Boston, MA-based company is axing a quarter of its staffers across R&D and administrative departments. Cue had around 50 employees as of Wednesday, Passeri said.
Overall, the pipeline review and staff cuts should extend the company’s cash runway through the middle of next year and cut its fiscal year 2025 operating expenses by 25% to $30 million. Cue ended March with $41 million in cash and cash equivalents.