BOSTON - Elevation Oncology, Inc. (NASDAQ:ELEV), a biopharmaceutical company focused on developing targeted therapies for cancer, has nominated EO-1022 as its development candidate for an antibody-drug conjugate (ADC) targeting HER3-expressing solid tumors. With a market capitalization of $42.51 million and strong financial health indicators according to InvestingPro data, the company is advancing EO-1022 through preclinical development, with an investigational new drug (IND) application expected to be filed in 2026.
HER3, a protein found in various solid tumors, including breast cancer and non-small cell lung cancer, is associated with poor clinical outcomes. EO-1022 comprises seribantumab, an anti-HER3 monoclonal antibody, attached to a monomethyl auristatin E (MMAE) payload using site-specific conjugation technology. The company's stock has shown significant momentum, with a 21.77% return over the past week, though InvestingPro analysis indicates the stock may be slightly undervalued at current levels.
Elevation Oncology's CEO, Joseph Ferra, stated that the nomination of EO-1022 is a significant step in strengthening their ADC pipeline, highlighting seribantumab's selectivity and safety profile in delivering the cytotoxic payload to cancer cells. The company anticipates sharing preclinical data for EO-1022 in the first half of 2025.
The company also announced a global licensing agreement with Synaffix B.V., granting Elevation Oncology access to Synaffix's ADC technology platform, including GlycoConnect® and HydraSpace® technologies, and the SYNstatin E™ linker-payload. This agreement is exclusive to HER3 as a single target in combination with SYNstatin E™.
David Dornan, Ph.D., Chief Scientific Officer of Elevation Oncology, expressed optimism about the ADC approach's potential to exploit HER3's clinical capabilities. Peter van de Sande, Head of Synaffix, echoed the sentiment, underscoring the collaboration's aim to advance ADC innovation.
Elevation Oncology is currently advancing its pipeline, with its lead candidate, EO-3021, in a Phase 1 trial for gastric/gastroesophageal adenocarcinoma that expresses Claudin 18.2. EO-1022 is the next step in their commitment to developing selective cancer therapies for patients with significant unmet medical needs.
This report is based on a press release statement from Elevation Oncology. The company's forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially. Investors are cautioned that the development of biotechnology products is inherently uncertain. According to InvestingPro data, the company maintains a healthy current ratio of 17.77 and holds more cash than debt on its balance sheet, though analysts do not anticipate profitability this year. For deeper insights into Elevation Oncology's financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
In other recent news, Elevation Oncology has received Fast Track designation from the U.S. Food and Drug Administration for its investigational drug EO-3021, which is targeted at treating advanced gastric and gastroesophageal junction cancers. This designation is intended to accelerate the development and review of drugs that address serious conditions and unmet medical needs. The company has also been given notice of non-compliance by Nasdaq due to its stock closing below the minimum bid price for 30 consecutive business days, with a deadline set for March 17, 2025, to regain compliance.
Elevation Oncology's EO-3021 has shown promising early results in a Phase 1 clinical trial, with an overall response rate of 42.8% in a subset of cancer patients. The company plans to continue its monotherapy dose expansion and report additional data from the ongoing trial in the first half of 2025. In addition, Elevation Oncology has disclosed its second-quarter financial results, revealing a net loss of $11 million, but also a strong cash position of $111 million, projected to fund operations until 2026.
Analyst firms Piper Sandler and Stephens have maintained their Overweight rating on Elevation Oncology, following the expansion of the Phase 1 trial of EO-3021. The company also received positive feedback from the American Society of Clinical Oncology meeting regarding the trial assessing the efficacy of AstraZeneca (NASDAQ:AZN)'s AZD0901 in gastrointestinal and gastroesophageal junction cancers. These are the recent developments in the performance and activities of Elevation Oncology.
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