US stock futures dip as Nvidia earnings spark little cheer
On Tuesday, JPMorgan analysts downgraded iTeos Therapeutics stock from Overweight to Neutral and lowered the price target to $8.00 from the previous $15.00. This decision follows the announcement that iTeos and its partner GSK have decided to terminate their TIGIT program, belrestotug, due to insufficient improvement in progression-free survival (PFS) in the Phase 2 Lung-201 study. With a market capitalization of $308 million and a beta of 1.39, InvestingPro data shows the company maintains strong liquidity with a current ratio of 14.13.
The news of the termination led to a significant intraday rise in iTeos shares, approximately 20%, contrasting with a 1.8% decline in the XBI biotech index. Analysts believe that the stock will likely remain range-bound in the near term. The market’s reaction suggests that investors had already discounted the TIGIT program’s prospects, viewing the cessation of the partnership as a positive move to conserve resources for other projects in the company’s pipeline. Trading at a Price/Book ratio of 0.47, InvestingPro analysis indicates the stock may be undervalued, with additional insights available for subscribers.
iTeos Therapeutics is now focusing on its early-stage pipeline, which includes EOS-984 (ENT1) and EOS-215 (Trem2). These programs are considered promising but are currently too early in development to properly evaluate. As a result, JPMorgan suggests that a cautious approach is warranted for investors considering iTeos stock at this time.
The company is actively looking for new opportunities, as indicated by the ongoing targeted process mentioned by JPMorgan. The firm’s analysts have also spoken with the CFO of iTeos for additional insights into the company’s strategy following the discontinuation of the TIGIT program. The conversation provided further context to the decision, but specific details were not disclosed in the report.
In other recent news, iTeos Therapeutics, Inc. reported a narrower-than-expected loss for the first quarter of 2025, with a net loss of $34.6 million, or $0.80 per share. This result surpassed analyst expectations, which had projected a $0.93 per share loss. The company did not report any revenue for the quarter, as it continues to focus on developing its immuno-oncology therapeutics. Despite this, iTeos maintains a strong cash position of $624.3 million, which it expects will sustain operations through 2027.
In a separate development, iTeos and its partner GSK have decided to discontinue the belrestotug development program for lung cancer treatment. This decision followed the Phase 2 GALAXIES Lung-201 study, which did not meet the criteria for clinically meaningful improvements in progression-free survival. The companies have ceased all belrestotug-containing cohorts and stopped new patient enrollment in the ongoing GALAXIES Lung-301 Phase 3 trial. iTeos is currently conducting a strategic review to maximize shareholder value, with TD Cowen providing financial advisory services.
The company’s CEO, Michel Detheux, emphasized iTeos’s commitment to sharing data with the scientific community to further understanding of immuno-oncology. Despite the setbacks, iTeos is exploring opportunities to leverage its assets and continues to anticipate key clinical readouts in the coming quarters.
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