Cue Biopharma’s Phase 2 update in chronic spontaneous urticaria (CUE-221) showed performance in moderate-to-severe CSU, but shares fell sharply as investors digested the implications for the next-stage plan. The company also signaled progression toward a phase IIb/III study in CSU and a separate Phase 2 program in food allergy. The market reaction reflected uncertainty around how the mid-stage results translate into confirmatory efficacy, dosing, and endpoints. For immunology assets in chronic dermatology, small endpoint differences and trial design details can drive expectations for differentiation versus incumbents. Cue’s next steps, including how it structures the phase IIb/III pathway, will likely determine whether the program can overcome the market’s caution despite a positive Phase 2 score profile.