Cullinan Strikes $700M+ China Autoimmune Deal

Highlights

• Cullinan Therapeutics secured global rights to Genrix Bio’s bispecific T cell engager, velinotamig, for autoimmune diseases.
• Deal Structure: $20 million upfront with over $700 million in potential milestone payments.
• Clinical Target: Velinotamig targets BCMA and CD3, complementing Cullinan’s autoimmune asset CLN-978.
• Development Path: A Phase I autoimmune study is planned in China; Cullinan will manage global development thereafter.
• Financial Position: Cullinan projects a cash runway through 2028, with possible future funding needs.
• Industry Trend: The move aligns Cullinan with a broader shift of biopharma companies sourcing innovation from China.

Strategic Licensing Deal Expands Autoimmune Pipeline

Cullinan Therapeutics has entered a strategic licensing agreement with Chongqing-based Genrix Bio to acquire global rights to velinotamig, a bispecific T cell engager developed for autoimmune diseases. As part of the deal, Cullinan will pay an upfront fee of $20 million for exclusive development and commercialization rights outside of Greater China. Over the long term, the agreement could total over $700 million in milestone payments, including up to $292 million in development and regulatory milestones and up to $400 million in sales-based incentives.

"Genrix’s velinotamig complements Cullinan’s own pipeline, according to William Blair, which added that the deal will put Cullinan in a better position to target autoimmune diseases."

Velinotamig Strengthens Bispecific Antibody Capabilities

Velinotamig is a bispecific antibody that binds to both BCMA and CD3—proteins found on immune cells. This dual binding mechanism allows cytotoxic T cells to selectively target and eliminate BCMA-expressing cells, which are often implicated in autoimmune conditions. Cullinan noted that velinotamig has a stronger affinity for BCMA than CD3, a characteristic that analysts at William Blair believe will aid in precise T cell activation and reduce unintended immune responses.

"Like CLN-978, velinotamig is a bispecific antibody that binds to both BCMA and CD3, proteins found on the surface of various immune cells."

According to analysts, this acquisition strategically aligns with Cullinan’s existing autoimmune pipeline, particularly with CLN-978, which is being developed to treat systemic lupus erythematosus (SLE), rheumatoid arthritis, and Sj?gren’s disease. With both assets, the company is positioned to address B-cell and plasma-cell-mediated autoimmune disorders.

"Along with CLN-978, Cullinan can 'target the treatment of both B-cell and plasma-cell mediated autoimmune indications,' the analysts added."

Clinical Promise and Future Plans

Genrix has already explored velinotamig in oncology. In a Phase II trial for multiple myeloma, the drug demonstrated an 85% overall response rate, outperforming approved therapies that range between 58% and 71%. A Phase I study focused on autoimmune indications is planned in China later this year. Post-study, Cullinan will assume full control over the asset’s global clinical development, prioritizing autoimmune applications. However, the company has not yet disclosed which indications it will target first.

"According to a Thursday morning note from Leerink, in a Phase II trial, it showed 'superior overall response rate (85%) vs. approved agents (58-71%).'"

Financial Outlook Remains Stable

Cullinan reiterated that its current financial runway extends through 2028, and the Genrix transaction does not alter this forecast. However, William Blair analysts cautioned that additional funding may be required in the future for continued clinical development and potential commercialization efforts.

"Cullinan on Wednesday also reiterated that its cash runway will be enough to keep the lights on through 2028, though William Blair noted that the company might 'require additional capital in the future for continued development and potential commercialization.'"

Broader Biopharma Trend: Turning to China

The Genrix partnership highlights a growing industry trend of Western pharmaceutical companies sourcing innovative therapies from China. Cullinan now joins peers such as Astellas, which recently committed over $1.5 billion to license Evopoint’s Claudin18.2-targeting antibody-drug conjugate, as well as Novo Nordisk and AstraZeneca, both of which have inked multibillion-dollar deals with Chinese firms in recent months.

"With the Genrix deal, Cullinan joins the growing group of biopharma companies looking to China to boost their pipelines."