BDTX vs. Cullinan Therapeutic: Which EGFR Challenger Is the Better Buy?

Core Insights - Black Diamond Therapeutics, Inc. (BDTX) and Cullinan Therapeutics, Inc. (CGEM) are both clinical-stage biotech companies focused on developing therapies for cancer, particularly targeting specific oncogenic mutations [2][3] BDTX Overview - BDTX is advancing its lead candidate, silevertinib, a fourth-generation EGFR MasterKey inhibitor aimed at treating EGFR mutant non-small cell lung cancer (NSCLC) and glioblastoma (GBM) [4][24] - Silevertinib has shown durable clinical responses in a phase I study involving patients with recurrent EGFRm NSCLC, including those with various mutation subtypes [5][8] - The company is currently conducting a phase II study for silevertinib in both recurrent and frontline settings, with initial results expected in late 2025 [6][8] - BDTX has entered a global licensing agreement with Servier Pharmaceuticals for its second asset, BDTX-4933, receiving an upfront payment of $70 million, allowing it to focus solely on silevertinib [9][23] CGEM Overview - CGEM is co-developing zipalertinib, an irreversible EGFR inhibitor targeting EGFR exon 20 insertion mutations, with Taiho Pharmaceutical [10][12] - Zipalertinib has met its phase IIb endpoint in patients with EGFR ex20ins NSCLC, with plans for a new drug application submission by the end of 2025 [11][12] - CGEM has a broader pipeline, including candidates for NSCLC and multiple myeloma, but has seen a decline in EPS estimates over the past 60 days [13][17] Comparative Performance - BDTX shares have increased by 59.8% year-to-date, while CGEM shares have decreased by 48.4%, contrasting with a 5.2% gain in the industry [19] - BDTX is trading at a lower valuation of 5.87X forward sales compared to CGEM's 15.56X [21] - The Zacks Consensus Estimate for BDTX's 2025 EPS suggests a significant increase of 125.98%, while CGEM's estimates have moved downward [15][17] Investment Outlook - BDTX is currently rated as a Zacks Rank 2 (Buy), while CGEM holds a Zacks Rank 4 (Sell) [23] - BDTX's silevertinib is positioned as a promising candidate in the competitive NSCLC market, targeting a wide range of mutations, including the C797S resistance mutation [24][25]