ITOS Stock Plummets: What Went Wrong with iTeos Therapeutics?

Brussels, Belgium – iTeos Therapeutics, a Belgian-based immunotherapy-focused cancer biotech company listed on NASDAQ, is making strides in the development of an anti-TIGIT molecule for various forms of cancer. Despite facing challenges in market valuation, iTeos has ventured into late-stage clinical trials with significant support from a partnership with GSK. Analysts are closely monitoring the evolution of iTeos’ investment thesis as the company has experienced a notable decline over the past two months.

The primary focus of iTeos’ clinical efforts lies in belrestotug, an immune checkpoint TIGIT antagonist, aiming to target solid tumors in the field of immunotherapy. Collaborating with GlaxoSmithKline, iTeos is combining belrestotug with GSK’s anti-PD-1 antibody dostarlimab in various contexts. Unlike some competing companies, iTeos is optimistic about the unique qualities of belrestotug, anticipating favorable outcomes in clinical trials. However, the company has yet to release definitive trial data, although positive interim results have been hinted at in recent business updates.

A significant milestone was reached as the first patient enrolled in iTeos’ phase 3 trial GALAXIES-Lung-301, triggering a substantial $35 million payment from GSK. Financially, iTeos boasts a solid balance sheet with a substantial cash reserve, providing a runway of approximately 15-16 quarters for operational sustainability. Despite the positive developments, risks remain as the efficacy of TIGIT as a target for cancer treatment remains unproven, with recent setbacks in trials impacting market sentiments towards iTeos.

While iTeos remains an intriguing investment opportunity at a market cap of around $500 million, uncertainties regarding the success of their clinical trials and the overall market sentiment pose challenges. Investors are advised to approach the stock cautiously, considering potential valuation risks and the need for further data readouts later in the year. The coming months will be crucial for iTeos as they navigate through the evolving landscape of cancer therapeutics, with a cautious “Buy” sentiment recommended by analysts.