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BOSTON - Elevation Oncology Inc. (NASDAQ:ELEV), a clinical-stage biotech company with a market capitalization of $28.3 million specializing in cancer therapy development, announced today its decision to cease the development of its drug candidate EO-3021, an antibody-drug conjugate aimed at treating gastric and gastroesophageal junction cancers. The company will instead focus on advancing EO-1022, a therapy for HER3-expressing solid tumors, and will explore strategic options to maximize shareholder value.
The decision to discontinue EO-3021 comes after a Phase 1 trial showed an objective response rate of 22.2% in a biomarker-enriched patient population. Despite the drug being well-tolerated, the efficacy data did not meet the company’s criteria for success, particularly when compared to other therapies in development targeting the same protein, Claudin 18.2.
Joseph Ferra, CEO of Elevation Oncology, expressed disappointment in the trial’s outcome but noted the company’s commitment to advancing EO-1022, which incorporates glycan site-specific conjugation. Preclinical data for EO-1022 will be presented at the AACR Annual Meeting in April, with an Investigational New Drug application planned for 2026.
In conjunction with the drug development update, Elevation Oncology is reducing its workforce by approximately 70%, with estimated costs of $3 million, primarily to be paid by the end of June 2025. This reduction includes the departure of Chief Medical Officer Dr. Valerie Malyvanh Jansen, who will continue to support the company in a consulting role after March 31, 2025.
Elevation Oncology’s current financial position, with $93.2 million in cash, cash equivalents, and marketable securities as of December 31, 2024, is expected to fund operations into the second half of 2026. According to InvestingPro data, the company maintains a strong liquidity position with a current ratio of 21.2x and holds more cash than debt on its balance sheet. Get access to more detailed financial metrics and 8 additional ProTips with an InvestingPro subscription.
The company’s strategy shift aligns with its focus on selective cancer therapies for solid tumors with unmet medical needs. Elevation Oncology aims to leverage its expertise in antibody-drug conjugates to bring EO-1022 through preclinical development and into clinical trials.
This announcement is based on a press release statement from Elevation Oncology. The company’s forward-looking statements reflect current expectations and are subject to inherent uncertainties in biotechnology development and regulatory approval processes. With the stock trading near its 52-week low of $0.41 and analysts maintaining a consensus buy rating with price targets ranging from $5 to $10, InvestingPro analysis suggests the stock may be undervalued at current levels. Elevation Oncology does not undertake any obligation to update these statements in light of new information or future events.
In other recent news, Elevation Oncology has announced a shift in its stock listing from The Nasdaq Global Select Market to The Nasdaq Capital Market. This move grants the company an additional 180-day period to meet the minimum bid price requirement, which it must achieve by September 15, 2025. Meanwhile, H.C. Wainwright has maintained a Buy rating with a $6.00 price target for Elevation Oncology, following the release of its fourth-quarter financial and operational results. JMP Securities also expressed confidence by maintaining a Market Outperform rating and a $7.00 price target, citing the promising initial response rate of the company’s EO-3021 therapy.
Additionally, Elevation Oncology has announced that its Chief Scientific Officer, Dr. David Dornan, will be departing in February 2025 to pursue a new opportunity. The company has plans for Dr. Dornan to remain as a consultant to ensure a smooth transition. On the clinical front, Elevation Oncology has begun dosing in a Phase 1 trial for EO-3021, targeting gastric and gastroesophageal junction cancers, with data expected in late 2025 or early 2026. The company is also preparing to present preclinical data for EO-1022, a HER3-targeting ADC, and aims to file an Investigational New Drug application in 2026. These developments reflect Elevation Oncology’s ongoing efforts to advance its pipeline and address unmet medical needs in oncology.
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